Fair Price Shops and Consumer Protection

Abstract

It is now universally accepted that the level of consumer rights and protection is a true indicator of the development of a country and the progressiveness of its civil society. The reasons for universal acceptance of consumer rights and protection, as often cited, are: the rapidly increasing variety of goods and services which modern technology has made available; the growing size and complexity of production and distribution system; Fair price shops are run predominantly by cooperatives and a limited number of fair price shops by Tamilnadu Civil Supplies Corporation. The Government has opened 1250 additional part time fair price shops and 148 new shops from 01.06.2006 to 31.03.2009. Present study will show how for the consumers have been benefited in FPS and consumer awareness about their rights in terms of the objectives of FPS.

The objectives of the present study are: 1. To study the socio-economic conditions of FPS consumers. 2. To study the problems relating to the implementations of the FPS. 3. To study the benefits derived out of FPS. 4. To offer suggestions to improve the working of FPS.

Present study is empirical in nature and will be studied using primary data. Survey method was followed for this study. Three villages from Tuticorin District Viz, Puthukkottai, Meelavittan, and Attimarapatti were selected for this study. From Tuticorin District 180 respondents (90 Below Poverty Line Consumers and 90 Above Poverty Line Consumers) were selected using simple random sampling. The data relates to the month of December 2010. The effectiveness of fair price shops is measured based on the responses given by the respondents of this study. Percentage analysis, averages, chi-square tests, Cramer’s V and probability analysis were used.

Keywords: Fair price shops, Civil Supplies Corporation, consumer rights, Percentage analysis, averages, chi-square tests, Cramer’s V and probability analysis

JEL Classification: A11