Consumer Affairs & Customer Care Solved Question Paper 2025 [Gauhati University BCom 6th Semester]

4 (Sem–6/CBCS) HE2 (CACC)

2025

COMMERCE
(Honours Elective)
(Consumer Affairs and Customer Care)

2025

Full Marks : 80
Time : Three hours

The figures in the margin indicate full marks for the questions.

1. Answer the following as directed :

1×10 = 10

(i) What is the highest price that can be charged for a product?
(a) Minimum Retail Price
(b) Maximum Retail Price
(c) Many Retail Price
(d) Major Retail Price
Answer: (b) Maximum Retail Price

(ii) Which is the supreme adjudicatory body?
Answer: Supreme Court

(iii) An appeal against the order of National Commission may be filed within ______ days by the aggrieved party.
Answer: 30 days

(iv) What is the full form of FSSAI?
Answer: Food Safety and Standards Authority of India

(v) National Consumer Helpline provides advice, information and guidance to empower consumers. (State whether true or false)
Answer: True

(vi) Angry consumer who voice their complaints and also show a Brand switching behaviour are known as what?
(a) Passives
(b) Voicers
(c) Irates
(d) Activists
Answer: (c) Irates

(vii) The chairperson of TRAI can hold office for five years. (State whether true or false)
Answer: True

(viii) Which type of complaints are dismissed by District/State/National Commission?
(a) Unfair Trade Practices
(b) Consumer complaints
(c) Frivolous and vexatious complaints
(d) Medical negligence
Answer: (c) Frivolous and vexatious complaints

(ix) When was ISO founded?
(a) 23rd February, 1947
(b) 23rd February, 1948
(c) 23rd February, 1949
(d) 23rd February, 1950
Answer: (a) 23rd February, 1947

(x) Consumer Protection Act provides statutory recognition to six rights of consumers. (State whether true or false)
Answer: True

2. Answer the following questions : 2×5 = 10

(i) Who can file a complaint?
Answer: i) A consumer who has purchased goods or services.
ii) Any registered consumer association.
iii) The Central or State Government.
iv) One or more consumers on behalf of many consumers having the same interest.

(ii) State two functions of consumer organisations.
Answer: i) They create awareness among consumers about their rights and responsibilities.
ii) They help consumers in filing complaints and getting justice.

(iii) Point out two benefits of AGMARK.
Answer: i) It ensures the quality and purity of agricultural products.
ii) It protects consumers from adulterated and substandard goods.

(iv) Write two responsibilities of consumers.
Answer: i) Consumers should be aware of their rights and exercise them properly.
ii) They should check quality marks, price, and expiry date before purchasing.

(v) Define Deficiency according to Consumer Protection Act.
Answer: Deficiency means any fault, imperfection, shortcoming, or inadequacy in the quality, nature, or manner of performance of a service as required by law or contract.

3. Answer any four questions from the following : 5×4 = 20

(i) Explain the types of complaints that are entertained by Banking Ombudsman.
Answer: The Banking Ombudsman is a quasi-judicial authority appointed by the Reserve Bank of India to address customer complaints against banks.

The types of complaints entertained are:

i) Non-payment or delay in payment: Complaints regarding delay in collection of cheques, drafts, or non-credit of deposits.
ii) ATM/Debit/Credit card issues: Unauthorized transactions, excess charges, or failure of ATM transactions.
iii) Non-adherence to banking norms: Violation of RBI guidelines related to loans, deposits, or customer service.
iv) Internet banking issues: Problems related to online transactions, security, or failed transfers.
v) Charges without notice: Levy of service charges without prior intimation to customers.
vi) Delay in loan processing: Unjustified delay or rejection of loan applications without proper reason.
vii) Deficiency in customer service: Rude behavior, lack of response, or failure to provide proper banking facilities.

Thus, the Banking Ombudsman ensures quick and cost-effective resolution of customer grievances.

(ii) What are the levels of packaging? State two functions of labelling. (3+2=5)
Answer:

Levels of Packaging:

i) Primary packaging: It is the immediate container of the product which directly holds the item, such as a toothpaste tube or a shampoo bottle.

ii) Secondary packaging: It refers to additional packaging that groups primary packages together, like a cardboard box containing multiple toothpaste tubes.

iii) Tertiary packaging: It is used for bulk handling, storage, and transportation, such as cartons, pallets, or containers.

Functions of Labelling:

i) Information: Labels provide essential details about the product such as ingredients, usage instructions, manufacturing date, expiry date, and price.

ii) Identification and promotion: Labels help in identifying the brand and also act as a promotional tool by attracting customers.

(iii) State the relief/remedy available to a complainant.
Answer: Under consumer protection laws, a complainant can seek various reliefs from consumer courts depending on the nature of the complaint.

i) Removal of defects: The court may order the seller to remove defects in goods or deficiencies in services.
ii) Replacement of goods: Defective goods can be replaced with new ones of similar description.
iii) Refund of price: The complainant may get back the amount paid for defective goods or services.
iv) Compensation: Monetary compensation may be awarded for loss, injury, or mental harassment.
v) Discontinuance of unfair practices: The trader may be directed to stop unfair or restrictive trade practices.
vi) Withdrawal of hazardous goods: The court may order removal of unsafe goods from the market.
vii) Payment of litigation cost: Expenses incurred by the complainant during the case may also be reimbursed.

Thus, these remedies ensure protection of consumer rights and promote fair trade practices.

(iv) What are the benefits of product testing?
Answer: Product testing is an important activity conducted before a product is introduced into the market to ensure quality, safety, and performance.

i) It ensures quality assurance by verifying that the product meets required standards.
ii) It helps in identifying defects or faults before the product reaches consumers.
iii) It enhances consumer safety by ensuring that the product is not harmful or hazardous.
iv) It increases customer satisfaction as tested products perform better and meet expectations.
v) It helps in building brand reputation and trust in the market.
vi) It ensures compliance with legal standards and government regulations.
vii) It reduces the risk of product failure and complaints, thereby saving cost and time.

Thus, product testing plays a key role in maintaining product reliability and protecting consumer interests.

(v) Write a short note on unfair trade practice.
Answer: Unfair trade practices refer to deceptive, fraudulent, or unethical methods used by sellers or producers to promote the sale of goods and services. These practices mislead consumers and violate their rights.

i) Misleading advertisements: Providing false or exaggerated information about products.
ii) False representation: Claiming quality, standard, or benefits that the product does not possess.
iii) Bait and switch tactics: Advertising goods at low prices but not supplying them.
iv) Hoarding and black marketing: Creating artificial scarcity to increase prices.
v) Selling defective or substandard goods: Supplying products that do not meet required standards.
vi) Hidden charges: Imposing extra costs without informing consumers.

Such practices are prohibited under consumer protection laws, and strict action can be taken against offenders to safeguard consumer interests.

(vi) What are the different ways for effective external complaint handling system?
Answer: An effective external complaint handling system helps organizations address customer grievances efficiently and maintain good customer relations.

i) Establishing consumer forums: Setting up consumer courts and grievance redressal agencies for dispute resolution.
ii) Ombudsman schemes: Appointing independent authorities like Banking Ombudsman to resolve complaints.
iii) Customer care centers: Providing helplines, email support, and online complaint portals.
iv) Timely response system: Ensuring quick acknowledgment and resolution of complaints.
v) Transparency: Clearly informing customers about procedures and status of complaints.
vi) Feedback mechanism: Collecting customer feedback to improve services.
vii) Legal support system: Providing access to legal remedies under consumer protection laws.

Thus, an effective complaint handling system ensures accountability, builds trust, and improves overall customer satisfaction.

4. Answer the following questions : (any four) 10×4 = 40

(i) What are the causes of customer dissatisfaction? Discuss the different types of private and public actions taken by dissatisfied consumers. (4+6=10)
Answer:
Customer dissatisfaction arises when a product or service fails to meet the expectations of consumers. It negatively affects customer loyalty and business reputation.

Causes of customer dissatisfaction:
i) Poor quality of product or service: When goods are defective or services are below standard.
ii) Misleading advertisements: False claims create unrealistic expectations leading to dissatisfaction.
iii) High prices: Charging excessive prices compared to value received.
iv) Poor customer service: Delay, rude behavior, or lack of response from the seller.
v) Non-availability of after-sales service: Failure to provide repair, maintenance, or support.
vi) Delay in delivery: Late delivery of goods or services causing inconvenience.

Types of actions taken by dissatisfied consumers:

Private Actions:
i) Switching brands: Consumers stop buying the product and shift to alternatives.
ii) Negative word-of-mouth: Sharing bad experiences with others, affecting company reputation.
iii) Direct complaint to seller: Consumers may approach the company for redressal or refund.

Public Actions:
i) Consumer organizations: Filing complaints through consumer groups or NGOs.
ii) Approaching consumer courts: Seeking legal remedy under consumer protection laws.
iii) Media exposure: Using social media, newspapers, or television to highlight grievances.

Thus, dissatisfaction leads to both private and public actions, forcing businesses to improve quality and services.

(ii) What are the objectives and role of Advertising Standards Council of India (ASCI)? Briefly state the regulations related to product and service advertising. (4+6=10)
Answer: The Advertising Standards Council of India (ASCI) is a voluntary self-regulatory organization that ensures ethical advertising practices in India.

Objectives of ASCI:
i) To ensure that advertisements are truthful, fair, and not misleading.
ii) To protect consumers from false or deceptive advertisements.
iii) To maintain public confidence in advertising.
iv) To promote responsible advertising practices among businesses.

Role of ASCI:
i) It monitors advertisements across media and investigates complaints.
ii) It ensures that ads do not harm public interest or violate social norms.
iii) It provides a mechanism for quick resolution of advertising disputes.
iv) It advises advertisers to modify or withdraw misleading advertisements.

Regulations related to product and service advertising:
i) Advertisements must be truthful and honest without exaggeration.
ii) They should not be misleading or deceptive regarding product quality, price, or benefits.
iii) Ads must not promote unsafe or harmful practices, especially for children.
iv) They should not offend public decency or morality.
v) Comparative advertisements must be fair and not disparaging competitors.
vi) Proper disclosure of terms and conditions must be made.

Thus, ASCI plays a vital role in maintaining ethical standards in advertising.

(iii) State the procedure for filing a complaint. Explain the provisions of penalties under the Consumer Protection Act. (5+5=10)
Answer:

Procedure for filing a complaint:
i) Filing of complaint: The consumer files a complaint in the appropriate consumer forum (District, State, or National Commission) depending on the value of the claim.
ii) Submission of documents: Relevant documents such as bills, receipts, warranty cards, and evidence must be attached.
iii) Payment of fees: A nominal fee is paid for filing the complaint.
iv) Admission of complaint: The forum examines and admits the complaint if valid.
v) Notice to opposite party: The opposite party is informed and asked to respond within a specified time.
vi) Hearing and evidence: Both parties present their arguments and evidence.
vii) Decision: The forum passes an order granting relief or dismissing the complaint.

Provisions of penalties under the Consumer Protection Act:
i) Penalty for non-compliance: Failure to comply with the orders of the consumer forum may result in fine or imprisonment.
ii) Punishment for misleading advertisements: Endorsers and manufacturers may be fined and prohibited from advertising.
iii) Product liability: Manufacturers, sellers, or service providers may be held liable for harm caused by defective products.
iv) Unfair trade practices: Strict penalties are imposed for adopting unfair or restrictive trade practices.
v) Compensation: Offenders may be required to pay compensation for loss or injury caused to consumers.

Thus, the Consumer Protection Act provides a strong legal framework to safeguard consumer rights and ensure justice.

(iv) What is Bureau of Indian Standards? Explain the role of BIS. (3+7=10)
Answer: The Bureau of Indian Standards (BIS) is the national standards body of India established under the BIS Act, 1986 (now revised in 2016). It is responsible for the standardization, marking, and quality certification of goods to ensure safety, reliability, and quality for consumers.

Role of BIS:
i) Formulation of standards: BIS develops Indian Standards for products and services to ensure quality and uniformity.
ii) Certification and ISI mark: It grants certification marks (like ISI mark) to products that meet prescribed standards.
iii) Quality assurance: BIS ensures that goods available in the market are safe and reliable for use.
iv) Testing and inspection: It conducts product testing through laboratories and inspection systems.
v) Consumer protection: BIS safeguards consumer interests by preventing substandard and unsafe products.
vi) Promotion of exports: Standardization improves the global acceptability of Indian goods.
vii) Awareness programs: BIS spreads awareness among consumers regarding quality standards and certification marks.

Thus, BIS plays a vital role in maintaining product quality and protecting consumers in India.

(v) Explain the various forms of market structure with their merits and demerits.
Answer: Market structure refers to the nature and degree of competition in a market. The main forms of market structure are as follows:

i) Perfect Competition: A market with many buyers and sellers, homogeneous products, and free entry and exit.
Merits: Efficient allocation of resources, fair prices, no monopoly power.
Demerits: Lack of innovation, no product differentiation, unrealistic in real life.

ii) Monopoly: A market with a single seller controlling the entire supply of a product.
Merits: Economies of scale, stability in production, scope for innovation.
Demerits: High prices, exploitation of consumers, lack of competition.

iii) Monopolistic Competition: A market with many sellers offering differentiated products.
Merits: Variety of products, some degree of competition, innovation.
Demerits: Higher prices due to branding, wastage in advertising, inefficiency.

iv) Oligopoly: A market dominated by a few large firms.
Merits: Economies of scale, better technology, stable prices.
Demerits: Possibility of collusion, restricted competition, limited consumer choice.

Thus, each market structure has its own advantages and limitations depending on the level of competition.

(vi) Describe the evolution of consumer movement in India.
Answer: The consumer movement in India has evolved over time to protect the rights and interests of consumers.

i) Early stage (Pre-independence): Consumer awareness was very low, and there were limited laws to protect consumers from exploitation.

ii) Post-independence period: The government introduced laws like the Essential Commodities Act and set up fair price shops to protect consumers from black marketing and hoarding.

iii) Growth of consumer awareness (1960s–1980s): Consumer organizations and voluntary groups started emerging to raise awareness about consumer rights.

iv) Enactment of Consumer Protection Act, 1986: A major milestone that provided a legal framework for consumer protection and established consumer courts at district, state, and national levels.

v) Expansion and modernization: The movement gained strength with increased literacy, media influence, and globalization. Consumers became more aware of their rights.

vi) Consumer Protection Act, 2019: It introduced new features like e-commerce regulation, product liability, and stricter penalties for unfair trade practices.

vii) Present scenario: Digital platforms, social media, and online grievance systems have empowered consumers to raise their voices effectively.

Thus, the consumer movement in India has developed from a weak stage to a strong and organized system ensuring consumer protection and awareness.

(vii) Discuss the composition, jurisdiction and power of State Consumer Dispute Redressal Commission.
Answer: The State Consumer Dispute Redressal Commission (State Commission) is an important quasi-judicial body established under the Consumer Protection Act, 2019 to address consumer disputes at the state level.

Composition:
i) The State Commission consists of a President and other members appointed by the State Government.
ii) The President is usually a person who is or has been a Judge of a High Court.
iii) Other members include persons of ability, integrity, and knowledge in fields such as law, commerce, economics, or public affairs.
iv) The composition ensures fair and expert handling of consumer disputes.

Jurisdiction:
i) Original jurisdiction: It can entertain complaints where the value of goods or services and compensation exceeds ₹50 lakh but does not exceed ₹2 crore (as per updated provisions).
ii) Appellate jurisdiction: It hears appeals against the orders of the District Consumer Disputes Redressal Commission.
iii) Territorial jurisdiction: It covers disputes arising within the geographical limits of the concerned state.

Powers of the State Commission:
i) It has powers similar to a civil court, such as summoning and enforcing attendance of witnesses.
ii) It can order removal of defects, replacement of goods, or refund of price.
iii) It can award compensation for loss or injury suffered by the consumer.
iv) It can issue orders to discontinue unfair trade practices or misleading advertisements.
v) It can impose penalties for non-compliance of its orders.
vi) Its decisions are binding, and appeals can be made to the National Commission.

Thus, the State Commission plays a crucial role in protecting consumer rights at the state level.

(viii) What are Consumer Protection Councils? Explain the different Consumer Protection Councils. (2+8=10)
Answer: Consumer Protection Councils are advisory bodies established under the Consumer Protection Act to promote and protect the rights and interests of consumers.

Meaning: Consumer Protection Councils are formed at different levels of government to create awareness, advise on consumer issues, and ensure that consumer rights are safeguarded.

Types of Consumer Protection Councils:

i) Central Consumer Protection Council: It is established by the Central Government and headed by the Minister of Consumer Affairs. Its main objective is to promote and protect consumer rights at the national level. It advises the government on policy matters and consumer welfare programs.

ii) State Consumer Protection Council: Formed by the State Government and headed by the State Minister of Consumer Affairs. It works to promote consumer rights within the state and coordinates with the central council.

iii) District Consumer Protection Council: Established by the District Collector or District Magistrate. It focuses on creating awareness and resolving consumer issues at the district level.

Functions of Consumer Protection Councils:
i) To promote consumer rights such as the right to safety, information, and choice.
ii) To spread awareness about consumer protection laws.
iii) To advise the government on consumer-related policies.
iv) To encourage consumer organizations and participation.
v) To address issues related to unfair trade practices and exploitation.

Thus, Consumer Protection Councils play an important role in strengthening the consumer movement and ensuring effective protection of consumer rights.

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