Consumer

Consumer Rights Consumer Protection

Consumer Protection
International scenario: It is now universally accepted
that the level of consumer awareness 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 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; high level of sophistication in marketing and selling practices in advertising and other forms of promotion

Removal of personal relationship between buyer and seller as a result of mass marketing methods and consumers increased mobility. Above all, the growing consumer awareness about their rights, consciousness and concern for value for money have contributed to the emergence of universal acceptance of the need for protection and promotion of consumer rights

Consumer movement
One of the earliest systematic movement in consumerism was largely due to Mr. Ralph Nader, the well-known American Consumer Rights Advocate. History of protection of consumer rights by law has long been recognised as dating back to 1824. Every year, 15th of March is observed as the World Consumer Rights Day.

On that day in 1962 President John F. Kennedy called upon the U.S. Congress to accord its approval to the Consumer Bill of Rights. These rights are (i) right to choice; (ii) right to information, (iii) right to safety and (iv) right to be heard. President Gerald R. Ford added one more right i.e. right to consumer education. Later other rights such as right to healthy environment and right to basic needs (Food, Clothing and Shelter) were added. In India, 24th December is celebrated every year as the National Consumer Rights Day as the Consumer Protection Act, 1986 was enacted on that day.

UN
In the history of the development of consumer policy, April 9, 1985 is a very significant date for it was on this day the General Assembly of the United Nations adopted a set of general guidelines for consumer protection and the Secretary General of the United Nations was authorized to persuade member countries to adopt these guidelines through policy changes or law..

comprehensive policy
Physical safety; Protection and Promotion of the consumer economic interest; Standards for the safety and quality of consumer goods and services; Distribution facilities for consumer goods and services; Measures enabling consumers to obtain redress; Measures relating to specific areas (food, water and pharmaceuticals) and Consumer education and information programme.

These guidelines were adopted recognizing that consumers often face imbalances in economic terms, educational levels and bargaining power and bearing in mind that consumers should have the right of access to non-hazardous products apart from promoting just, equitable and sustainable economic and social development. These U.N. guidelines for Consumer Protection can assist in the identification of priorities particularly in the light of emerging trends in a globalised and liberalized world economy

Constitutionalism and Consumerism

Constitutionalism and consumerism both seem to be twin sisters with similar objectives. Constitutionalism, in a politically organized society, is concerned with the protection and promotion of an individuals rights, dignity and welfare as a citizen Similarly, consumerism is concerned with the protection, promotion and welfare of the rights of the individual as a consumer, a client and a customer. In the final analysis, it is the individual; who is the concern of both whether as a citizen, a consumer, a customer

Constitutionalism provides the policy framework, institutional mechanism, finances and functionaries for better service and empowerment of the citizen. On the other hand consumerism provides ways and means to demand quality goods, better services, better protection, empowerment, welfare and value for money. Thus, both are supplementary and complementary to each other. Constitutionalism promotes by way of constitutionally directed fundamental duties of a citizen, development of a scientific temper and spirit of inquiry and consumerism facilitates consumers to know about the products and services in detail and in all its aspects.

 Finally, one may like to mention that constitutionalism as well as consumerism is an art and science for ensuring quality of life. Therefore, promoting consumerism is directly related to the promotion of constitutionalism. In a more practical perspective the focus of both is good governance in all its dimensions, i.e., transparency, accountability, responsiveness, efficiency, effectiveness and economy at all levels sectoral, local, regional and national with a vision to develop a better society guaranteeing thereby a better life to all citizens.

Consumer Protection Implications for Good Governance

An effective, efficient and fair implementation of the Consumer Protection Act is one of the conditions precedent for promoting the culture of good governance and thereby ensuring a better promotion and protection of the rights of consumers. If the rights of the consumer in relation to the quality of goods and services are assured and taken care of, then there will be no cause for complaints. This situation would certainly create an environment wherein clients, customers and consumers would feel satisfied with the things needed most by them.

In this context, the concerns of good governance need to be mentioned briefly with a view to establish a linkage with the concern of Consumer Protection Policies, Laws and Institutions. Generally speaking, the thrust of good governance movement, inter alia, is efficiency, effectiveness, ethics, equality, economy, transparency, accountability, empowerment, rationality, impartiality and participation

Consumer Protection in India

It may be mentioned at the outset that any one interested in the task of consumer protection movement has to be well versed in various laws and not merely with the Consumer Protection Act, 1986.

One should have knowledge of laws relating to Contract, Tort, Limitation, Transport, Railways, Telegraphs, Telephones, Post, Air Travel, Insurance, Electricity, Water, Housing, Medicine, Banking, Finance, Engineering, Motor Vehicles, Hotel Industry, Entertainment, Cooperative Societies, Tourism Agencies, Taxation, etc. There is no limit to subjects, which may come before a Consumer Forum /Commission for decision. In addition, one should also be well versed with the laws relating to unfair trade practice and restrictive trade practices.

INDIAN laws
The Indian Penal Code, 1860; Indian Contract Act, 1872; Drugs Control Act, 1950; Industries (Development and Regulation) Act, 1951; Indian Standards Institution (certification marks) Act, 1952; Drug and Magic Remedies (Objectionable Advertisement) Act, 1954; Prevention of Food Adulteration Act, 1954; Essential Commodities Act, 1955; Trade and Merchandise Marks Act, 1958; Hire Purchase Act, 1972; Cigarettes (Regulation of Production, Supply and Distribution) Act, 1975; Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities Act, 1980; Essential Commodities (Special Provisions) Act, 1981

Multi-State-Co-operative Societies Act, 1984; Standard of Weights and Measures (Enforcement) Act, 1985; and Narcotic Drugs and Psychotropic Substances Act, 1985. Some significant consumer protection enactments of pre-Independence time are the Sale of GoodsAct, 1930; Agriculture Produce (Grading and Marketing) Act, 1837 and Drugs and Cosmetics Act, 1940 all aim at protection of consumers. The latest addition the list of laws having bearing on consumer protection is Competition Act, 2002 etc..,

THE boss ,CPA,1986 better was enacted with an objective to provide

protection of the interests of the consumers, to make provision for the establishment of Consumer Councils and other authorities for the settlement of consumer disputes. This is indeed a unique and highly progressive piece of social welfare legislation. The Act is intended to provide effective and efficient safeguards to the consumers against various types of exploitations and unfair dealings.

Important Features of the C.P. Act

(i) The Act applies to all goods and services unless

specifically exempted by the Central Government. (ii) It covers all the sectors private, public and cooperative. (iii) The provisions of the Act are compensatory in nature. (iv) It provides adjudicatory authorities, which are simple, speedy and less expensive. (v) It also provides for Consumer Protection Councils at the National, State and District levels. (vi)The C.P. Act is in addition to and not in derogation of the provisions of any other law for the time being in force.

Consumer Rights under the Act

(a) the right to be protected against marketing of goods and services which are hazardous to life and property; (b) the right to be informed about the quality, quantity, potency, purity, standard and price of goods or services, as the case may be to protect the consumer against unfair trade practices; (c) the right to be assured, wherever possible of access to variety of goods and services at competitive prices; (d) the right to be heard and to be assured that consumers interests will receive due consideration at appropriate fora; (e) the right to seek redressal against unfair trade practices or restrictive trade practices or unscrupulous exploitation of consumers; and (f) the right to consumer education.

 In todays date, business is confronted with growth of consumerism and legislative measures to protect consumers. Consumer movement is growing in India. There is growing consumer awareness about products failing to satisfy quality requirements. Exploitation of consumers by unfair trade practices, poor quality and spurious products and overpricing is very widespread. Misleading false or deceptive advertisements is common. At times the advertisement gives only half the information so as to give a different impression than is the actual fact.

 Misrepresentation about the quality of a product or the potency of a drug or a medicine can be projected without much risk. There are organizations such as Consumer Guidance Society of India, Mumbai and Consumer Education and Research Centre, Ahmadabad. These organizations are active in conducting product testing and exposing substandard quality and adulteration. Outcome of consciousness regarding consumer rights has led to ISI certification of food colors now being mandatory. Consumer organisations also play an important role in addressing consumer greivances.

Consumer Rights
Some of the rights of consumers are: Right against exploitation by unfair trade practices. Right to protection of health and safety from goods and services that are available to the consumer. Right to be informed about the quality and performance standards, ingredients of the products, possible adverse effects etc. Right to be heard if there is any grievance or suggestion. Right to get genuine grievances redressed. Right to a physical environment that will protect and enhance the quality of life.

Responsibility of Consumers
Consumer should not make vague or general complaints and should also have supporting information and proof such as a bill. Consumer should try to understand the viewpoint of the seller. Consumers in asserting their rights should not inconvenience or hurt other sections of the public ie resort to rasta roko movements, bandh etc. Consumers should complain against a system and not attack individuals.

 Kotler has defined Consumerism as a social movement seeking to augment the rights and powers of the buyers in relation to others. Consumerism as a collective endeavor of the consumers to protect their interests, is a manifestation of the failure of the business, including that of the public sector, and the government to guarantee and ensure the legitimate rights of the business.

 For consumer protection all stakeholders especially Business, Government and consumers are equally responsible. Business, comprising producers and all elements of distribution channels have to pay due regard to consumer rights.
Producer should not charge exorbitant prices in a sellers market. Hoarding and black-marketing is illegal.

Consumer Protection

Consumer Protection
Government should come to the rescue of the consumer to avoid him from being misled, duped, cheated and exploited. As per the UN Guidelines for Consumer Protection Role of Government in consumer protection is vital and is through policy making, legislation and development of institutional capacity for its enforcement. Government to establish distribution facilities for essential consumer goods and services. Encourage establishment of consumer cooperatives and related trading activities. Establish legal measures to enable consumers to obtain redress through formal or informal procedures.

Consumer Protection
Consumers should accept consumerism as a means of asserting and enjoying their rights. As per Kotler addition of long run consumer welfare asks the businessman to include social and ecological considerations in his product ad market planning.

NGOs have an important role in consumer protection. As per the UN Guidelines one of the objectives is to facilitate the development of independent consumer groups which should have the freedom to present their views in the decision making processes affecting them. Consumer organisations should be encouraged to monitor adverse practices, such as the adulteration of foods, false or misleading claims in marketing and service frauds.

Utility of Consumerism
Producers and sellers will not take the consumer for granted. Consumerism will provide feedback for businesses and enable producers to understand consumer grievances, needs and wants. Consumerism will make the Government more responsive to consumer interests, prompt it to take necessary measures to protect the rights of consumers. Help consumer and producer to get together and cooperate to get rid of unscrupulous traders.

Consumerism
Consumerism has the following roles to play:
Consumer Education: Consumer is given information about various consumer goods and services in relation to prices, standard trade practices etc. Product Rating: Agencies such as Consumer Education and Research Society (CERS), Ahmedabad; carry out tests and report the result of such tests. Liaison with Government and with Producers

UN Guidelines for Consumer Protection

Objective:
1. To assist countries in achieving or maintaining adequate protection for their population as consumers. 2. Facilitate production and distribution patterns responsive to the needs and desires of consumers. 3. Encourage high levels of ethical conduct for those engaged in the production and distribution of goods and services. 4. Assist countries in curbing abusive business practices by all enterprises which adversely affect consumers. 5. Facilitate development of independent consumer groups. 6. To further international cooperation in the field of consumer protection 7. Encourage the development of market conditions which provide consumers with greater choice at lower levels.

General Principles
Governments should develop, strengthen or maintain a strong consumer protection policy, taking into account guidelines set below: Protect consumers from hazards to their health and safety. Promotion and protection of the economic interests of consumers. Access of consumers to adequate information to enable them make informed choices. Consumer education. Availability of effective consumer redress. Freedom to organise consumer groups to present their views in decision making processes affecting them.

Plight of Indian Consumer

Some of the problems faced by Indian consumers are: Short supply of items of essential needs. Lack of effective or workable competition. Unfamiliarity of product features results in sale of substandard, inferior or even defective goods Due to low literacy levels and unsatisfactory information flows, Indian consumers are not conscious of their rights. Consumerism in India is not organized and developed. Laws to safeguard interests of consumers are not effectively implemented.

Government Measures
In India, the Government has taken a number of measures to protect consumer interests: Statutory Regulation:
Government of India is empowered to regulate the terms and condition of sale, nature of trade and commerce etc. Important legislation in this respect include the Competition Act, Essential Commodities Act, Prevention of Food Adulteration Act, Prevention of Black marketing and Maintenance of Supplies of Essential Commodities Act, Consumer Protection Act etc. Growth of Public Sector was designed to enhance consumer welfare by increasing production and making available goods and services at fair prices, curbing private monopolies and reducing market imperfections.

Consumer Protection Act, 1986

The Consumer Protection Act 1986 is a social welfare legislation which was enacted as a result of widespread consumer protection movement. The main object of the legislature in the enactment of this act is to provide for the better protection of the interests of the consumer and to make provisions for establishment of consumer councils and other authorities for settlement of consumer disputes and matter therewith connected. In order to promote and protect the rights and interests of consumers, quasi judicial machinery is sought to be set up at district, state and central levels.

The main object of these bodies is to provide speedy and simple redressal to consumer disputes. It is one of the benevolent pieces of legislation intended to protect the consumers at large from exploitation.

Consumer Protection Councils

The Act provides for the establishment of a Central Consumer Protection Council by the Central Government and a State Consumer Protection Council in each State by the respective State Governments. Central Council shall consist of the Minister in charge of consumer affairs in the Central Government who shall be its Chairman . Objective of Council:
Right to be protected against marketing of goods and services which are hazardous to life and property. Right to be informed about the quality, quantity , purity, standard and price of goods and services so as to protect the consumer against unfair trade practices. Right to be assured access to a variety of goods at competitive prices. Right to be heard and assured that consumers interests will receive due consideration at appropriate forums. Right to seek redressal against unfair trade practices Right to consumer education.

Consumer Disputes Redressal Agencies

A District forum in each and every District of the State. A State Commission in each State. A National Commission : Established by the Central Government in Aug 1988. A complaint where the value of the goods and services and compensation is less than Rs 5 lakh is to be dealt with the District Forum; between 5-20 lakhs by the State Commission and with more than twenty lakhs falls within the jurisdiction of the National Comission.

Right to Information Act 2005 An Act to provide for setting out the practical regime of right to information for citizens to secure access to information under the control of public authorities, in order to promote transparency and accountability in the working of every public authority

Ethical Responsibilities of Business towards Consumers

The responsibility of business corporations towards their consumers are to provide the products at right quality, quantity, time, place and the right price. Consumer is the foundation of any business activity. Various unfair practices like hoarding, adulteration, shoddy merchandise, unfair measurements, misleading advertising etc. should not be allowed. Businesses should: Produce goods according to the needs of the consumers, their purchasing power etc. Offer quality goods at a reasonable price. Aim to improve the standard of living by producing goods and services of high quality. Treat customers fairly in all aspects of business transactions

Ethical Responsibilities of Business towards Consumers

Ensure that after sales services is available. Ensure the health and safety of customers Inform and educate customers on the arrival and use of products. Be truthful in the matter of advertising and warranty. Offer improved and new products through technical and marketing research. Avoid monopolistic and restrictive trade practices. Ensure that product promotion and advertising are not misleading. Trust forms the basis of successful marketplace transactions and is the most important ethical issue.

Ethical issues relating to Product

Quality Safety: Business should give safety the priority warranted by the product. Safety of a product can be ensured by monitoring the manufacturing process and periodic reviewing of the working conditions and competence of personnel Packaging and Branding Issues: It is the ethical responsibility of the manufacturer to provide clear, accurate and adequate information regarding the labeling and packaging of products. There should not be any misleading information regarding the quantity and quality of products. Product Warranties: Warranties are obligations to purchasers that sellers assume. Express warranties are the claims that sellers explicitly state for eg: a product is waterproof etc. Implied warranties include the claim, implicit in any sale, that a product is fit for its ordinary, intended use.

Ethical issues Relating to Promotion

Companies make use of advertising and promotional strategies to lure more customers. Advertising is considered unethical when: It degrades the rivals product or substitute product. The company provides misguiding and false information. It conceals information that vitally affects human life (eg: side effects of drugs etc). It is obscene or immoral.