The issues relating to consumer welfare affects the entire people around us,
since everyone is a consumer in one way or the other John F. Kennedy[1] rightly
stated that “Consumers, by definition, include us all. They are the largest
economic group in the economy, affecting and affected by almost every public and
private economic decision. Two-thirds of all spending in the economy is by
consumers. But they are the only important group in the economies, who are not
effectively organized, whose views are often not heardâ€.
So, from this statement
one should agree that all of us are consumers and there is no society without
consumers because all human beings, who live in an organized society are either
consumers of goods or services or a consumers of both either directly or
indirectly, more over from the moment a person comes into mothers womb and to
this world he starts consuming. Basically, without consumers there will be no
economical activities.
All the people with their limited resources would like to
fulfill their needs and wants and try to get maximum satisfaction; by this they
create demand for goods and services. In the absence of their demand, producers
would lack a key motivation to produce. Hence, one can say that consumer plays
an important role in the economy of any nation, which allows us to survive and
thrive.
Here it is also very important to remember valuable words said by our father of
the nation Gandhiji in the light of the importance of consumer as" A customer
(consumer) is the most important visitor on our premises. He is not dependent on
us, we are dependent on him. He is not an interruption in our work - he is the
purpose of it. We are not doing him a favour by serving him. He is doing us a
favour by giving us the opportunity to serve him."[2]
So, from the above it is clear that in one way Consumer is sovereign and customer is the king and at the same time because of various reasons these
concepts are nothing more than myths in the present scenario particularly in the
developing societies like India for various reasons.
But Indian government recognized the importance of consumer welfare and to
ensure consumer welfare it has been working on this issue on various dimensions
like consumer protection with legal measures, education and awareness programmes
etc. Ensuring consumer welfare is the responsibility of the government.
Accepting this, policies have been framed and the Consumer Protection Act, 1986,
was introduced.
A separate Department of Consumer Affairs was also created in
the Central and State Governments to exclusively focus on ensuring the rights
of consumers as enshrined in the Act. This Act has been regarded as the most
progressive, comprehensive and unique piece of legislation. In the last
international conference on consumer protection held in Malaysia in 1997, the
Indian Consumer Protection Act was described as one “which has set in motion a
revolution in the fields of consumer rights, the parallel of which has not been
seen anywhere else in the world.â€
The special feature of this Act is to provide speedy and inexpensive redressal
to the grievance of the consumer and provide consumer relief of a specific
nature and award compensation wherever appropriate.The aim of the Act is also
to ensure the rights of the consumer, viz. the right of choice, safety,
information, Redressal, public hearing and consumer education.
To achieve this goals Indian government had proposed and even made several
amendments to Act and at present government of India has proposed to bring about
a new law“Consumer protection Bill, 2015â€by which it would like to implement
the principle of Caveat Venditor which means let the seller be beware
and Consumer is the king.
Historical background
In the early days of industry, companies could afford to ignore consumer wishes
because there was so much demand for their goods and services. As a result, they
were often able to command high prices for products of poor quality. In those
days the principle of Caveat emptor[3]played a vital role.
Later, in modern period, industrialization, globalization, liberalization and
privatization have transformed the nations and world economy into a vibrant,
rapidly growing consumer market. As a result, the markets are flooded with
different kinds of goods and services and importance of consumer increasing day
by day. Modern technological developments have made a great impact on the
quality, availability and safety of goods and services but unfortunately the
consumers are still victims of unscrupulous and exploitative trade practices of
the sellers and the producers.
Consumers have been facing huge problems relating to defective goods, deficiency
in services, food adulteration, spurious goods, hoarding, use of deceptive and
fractional weights, late deliveries, variations in the contents of the pack,
misleading advertisements, hidden price components, price discrimination, ATM
and credit card frauds, financial frauds, real estate problems and problems
related to public utilities. These problems arise because unscrupulous sellers
take an unfair advantage of the ignorance and helplessness of the consumers.
More over because of lack of awareness, cohesiveness and lack of effective
organizations to voice their concerns, a consumer has remained a faceless,
voiceless.
In view of the emerging global markets and concerns for good governance coupled
with rising expectations of the people for better services, quality goods,
availability of choice and value for money, there is a national as well as
universal emphasis and consumer movements for protection and promotion of
Consumers rights and interests has been increasing day by day. In fact the
concept of consumer protection is as old as consumer exploitation.
From the history one has to agree that even in ancient period society consumer
protection was sought to be promoted through religious texts, principles of
ethics and morals and judgments of kings. States also provided punishments for
malpractices in business by traders.[4]Best example for this is Roman kingdom
and India[5].[6]
In the history of consumer protection 15th March 1962 is a remarkable day.[7]On
that day, President John F. Kennedy of U.S. called upon the U.S. Congress to
accord its approval to the Consumer Bill of Rights. They are (i) right to
choice; (ii) right to information, (iii) right to safety and (iv) right to be
heard.
President Gerald R. Ford[8] added one more right i.e. right to consumer
education. Further other rights such as right to healthy environment and right
to basic needs (Food, Clothing and Shelter) were added. In memory of that day
every year the 15th of March is observed as the World Consumer Rights Day.
Later UN General Assembly on April 9, 1985 adopted a set of general guidelines
regarding protection of consumer and it advised its member countries to adopt
these guidelines through policy changes or law. By this so many countries
started to enacted consumer protection laws.
India being a member country in UN and in furtherance of continuous demand from
various groups for a specific consumer protection legislation Indian parliament
enacted the consumer protection law, 1986 even though there are several Acts
addressing consumer protection related provisions.[9]This Act received assent
of the president on 24thDecember, so in commemoration of that day India has
been celebrating theNational Consumer Rights Day.[10]
From the above one can find that there has been numerous efforts taking by
national and at international level to provide protection to consumers through
legal frame work by providing numerous rights, besides this nations, voluntary
organizations and some individuals making numerous efforts to create consumer
empowerment through public and private campaigns, workshops, advertisements,
through formal and informal education and more importantly through consumer
movements etc.
An aware consumer is an asset to the society, so, an enlightened consumer is
needed, and it is possible through proactive support of the government, business
organizations, Educational Institutions – Schools, Colleges, Universities and
Research Institutions, organizations of Civil Society and more importantly by
individual efforts. So one should first understand that consumer protection is a
socio-economic and legal movement, it will be successful through consumer
education and awareness, which helps the consumer himself as well as his fellow
member in many ways.An aware consumer not only protects himself from
exploitation but induces efficiency, transparency and accountability in the
entire manufacturing and services sector.
Hence, one can say that consumer awareness and education is the main building
block for consumer protection. An enlightened consumer is an empowered consumer.
Realizingthe importance of consumer empowerment, it is the need of the hour to
accord top priority to consumer education and awareness for consumer protection
by people as well as by nations.
c) Individual efforts should be improved
The welfare of consumers remains in their own hands. Consumers do not hesitate
to seek information from authorities established for their welfare and to seek
justice through consumer courts if needed. An alert consumer, who is aware of
his rights and responsibilities not only can protect himself but can also make
consumer sovereignty a reality.
d) Role of government should also need to be extended
It is true that our government is trying at its best but when compared with
developing countries developing countries like India due to several reasons like
political, financial, lack of skilful and technical resources, adjudicating
bodies, illiteracy, poverty and support from public etc. consumer protection and
promotion is at its infancy stage even after providing protection and social and
economic justice in the Constitution of India in various provisions like
Articles14, 19, 21, 38, 39, 43, 46 etc. and after enacting and amending numerous
legislations like consumer protection Act 1986.
-There is a need for proactive legislations and effective
implementation to fulfill needs of the consumers
-Role of local bodies should be improved
It is better to provide consumer awareness programs through local governments
like punchatys, municipalities for generating better awareness.
-Un-employed youth should be utilized as voluntaries with some nominal
wages
Youth who are suffering from unemployment may be appointed as voluntaries with
some nominal wage or honorary wage to create awareness among masses, which can
fulfill two purposes like creating awareness and employment.
-Consumer awareness subject in regular curriculum
It is better to provide consumer protection, harmful goods and service etc.
related syllabus in regular curriculum at least from 6thclass by these
children,future of the nationwill be aware and even they educate their
families regarding consumer protection.
Finally, one has to understand that whatever the law may be, it will give fruit
full results when people are aware about their rights and duties for this to
achieve awareness of consumers is imperative. Hence, there should be a multi
pronged approach to generate proper awareness among consumers in order to
empower them. An aware consumer is an asset to the society; he/shenot only
protects himself from exploitation but induces efficiency, transparency and
accountability in the entire manufacturing and services sector.
“Awareness is like the sun. When it shines on things, they are transformed.â€[42]
The efficient and effective programme of Consumer Protection is of special
significance to all of us because we all are consumers. It is a
social-economical-legal movement so the active involvement and participation
from all quarters i.e. the central and state governments, the educational
Institutions, the NGOs, the print and electronic media and more importantly
realize of producers/ providers for co-existence, interdependence and economical
and national growth is needed then the problem of consumer exploitation would
become a thing of the past. This should, however, proceed in a harmonious manner
so that our society becomes a better place for all of us to live in.
“What is necessary to change a person is to change his awareness of himselfâ€[43]
“The key to growth is the introduction of higher dimensions of consciousness
into our awarenessâ€[44]
End-Notes
*Assistant Professor, Smt. V.D. Siddartha Law College, Kanuru, Vijayawada,
Krishna District, Andhra Pradesh, India. Pin code: 52007. Phon No. 9491448532,
E-mail: [email protected].
[1]John F.Kennedy, An American, 35thPresident of U.S in his Special message to
the congress on protecting the consumer interest on March 15, 1962 expressed
these words.
Available at :http://www.presidency.ucsb.edu/ws/?pid=9108
[2]Available at :http://www.azquotes.com/quote/376284
[3]This is a Latin word which means let the buyer be aware. According to thisprinciple the buyer alone is responsible for checking the quality and
suitability of goods before a purchase is made.
Available at :https://en.wikipedia.org/wiki/Caveat_emptor
[4]The roman government in or around 50 B.C implemented principle of Lex Julia
de Annona etc.
Available at :https://en.wikipedia.org/wiki/History_of_competition_law
Consumer Protection has its deep roots in the rich soil of Indian civilization,
which dates back to 3200 B.C.
Available at :http://www.jtexconsumerlaw.com/v11n3/jccl_india.pdf
[5]In ancient India, all sections of society followed Dharma-sastra, which laid
out social rules and norms, and served as the guiding principle governing human
relations regarding social, political, religious and even regarding economic.
Among the Dharmas, the most authoritative texts are a) the Manu Smriti (800 B.C.
to 600 B.C.); b) the Yajnavalkya Smriti (300 B.C. to 100 B.C); c) the Narada
Smriti (100 A.D to 200 A.D.); d) the Bruhaspati Smriti (200A.D. to 400 A.D.);
and e) the Katyayana Smriti (300 A.D. to 600 A.D). in all these one find
consumer protection.
Later during Chandraguptas rule consumer protection occupies a prominent place.
Kautilyas Arthasastra described the role of the State in regulating trade and
its duty to prevent crimes against consumers.
In the medieval period, some Muslim rulers developed well organized market
mechanisms to monitor prices and the supply of goods to the markets.
[6]“Historical evolution of consumer protection and law in Indiaâ€, Dr. Rajendra
Prasad, Professor of Law, Andhra University, Visakhapatnam, India.
Available at:http://www.jtexconsumerlaw.com/v11n3/jccl_india.pdf
[7]Consumer rights started to be recognized after the 1960s. in fact before
1960s they were practically nonexistent. Todays consumerism finds its origin in
the late 19thand early 20thcentury in US.
[8]38th President of the United States from August 1974 to January 1977.
[9]In India various Acts intended to protect the consumers against different
forms of exploitation were enacted, such as, 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 (Objectional Advertisement) Acts, 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 Goods Act, 1930;
Agriculture Produce (Grading and Marketing) Act, 1837 and Drugs and Cosmetics
Act, 1940 etc.
[10]Available at : https://en.wikipedia.org/wiki/Consumer_Protection_Act,_1986
[11]The consumer protection Act 1986, Chapter 2 deals about consumer councils.
Ss.4-8
[12]Section 6(f) of the consumer protection Act 1986.
[13]The word consumer is defined under Consumer protection Act 1986 in Section
2(1)(d) as below
"consumer" means any person who—
(i)buys any goods for a consideration which has been paid or promised or
partly paid and partly promised, or under any system of deferred payment and
includes any user of such goods other than the person who buys such goods for
consideration paid or promised or partly paid or partly promised, or under any
system of deferred payment when such use is made with the approval of such
person, but does not include a person who obtains such goods for resale or for
any commercial purpose; or
(ii)hires or avails of any services for a consideration which has been paid
or promised or partly paid and partly promÂised, or under any system of deferred
payment and includes any beneficiary of such services other than the person who
'hires or avails of the services for consideration paid or promised, or partly
paid and partly promised, or under any system of deferred payment, when such
services are availed of with the approval of the first mentioned personbut does
not include a person who avails of such services for any commercial purposes;
Explanation.— For the purposes of this clause, “commercial purpose†does not
include use by a person of goods bought and used by him and services availed by
him exclusively for the purposes of earning his livelihood by means of
self-employment;
[14]Such as (a) The right to be protected against marketing of goods which are
hazardous to life and property; (b) The right to be informed about the quality,
quantity, potency, purity, standard and price of goods to protect the consumer
against unfair trade practices; (c) The right to be assured, wherever possible,
access to an authority of goods at competitive prices; (d) The right to be heard
and to be assured that consumers interests will receive due consideration at
appropriate forums; (e) The right to seek redressal against unfair trade
practices or unscrupulous exploitation of consumers; and
(f) Right to consumer education.
[15]Under section 6 of the Act.
[16]. See S.2(1).
[17]. See S.2(5).
[18]. See S.2(20).
[19]. See S.2(22).
[20]. See S.2(31).
[21]. See S.2(42).
[22]. See S.2(43).
[23]. See S.31(2)(d).
[24]Source : The Consumer Protection Bill, 2015 and PRS
Available at : http://www.prsindia.org/uploads/media/Consumer/Consumer%20Protection%20bill,%202015.pdf
[25]District: Headed by a District Judge or District Magistrate and at least 2
technical members.
[26]State: Headed by a current or former High Court Judge and at least 4
technical members.
[27]National: Headed by a current or former Supreme Court Judge, and at least
15 judicial or technical members.
[28]District commission has power to admit complaints of a value up to Rs 50
lakh; Appeals from its orders lie before the State Commission.
State commission has power to admit complaints of a value from Rs 50 lakh to Rs
10 crore; Appeals from its orders lie before the National Commission.
National commission has power to admit complaints of a value above Rs 10 crore;
Appeals from its orders lie before the Supreme Court.
[29]Central Authority: Commissioner (equivalent of Secretary or other eminent
persons) and 5 Deputy Commissioners (equivalent of Joint Secretary or other
eminent persons).
[30]Regional Offices: To be headed by officer of the level of Deputy
Commissioner.
[31]District: District Collector and other members.
[32]State: State Minister-in-charge of the Department of Consumer Affairs and
up to 10 other members.
[33]National: Central Minister for the Department of Consumer Affairs and other
members.
[34](i) be protected against marketing of hazardous goods;
(ii) be informed about quality, standards, etc.;
(iii) access goods and services at competitive prices;
(iv) be heard at forums;
(v) seek redressal against exploitation; and
(vi) consumer education.
[35]Chapter V, containing Ss. 63 to 67 deal with the procedure pertaining to
mediation
[36]Official website of the department is http://consumeraffairs.nic.in
[37]The department is responsible for National Test House, Standards of Weights
and Measures, TheBureau of Indian Standards, Consumer Cooperatives, Forward
Markets Commission, Mumbai, Monitoring of Prices and Availability of essential
commodities, TheConsumer Protection Act, 1986, Consumer Welfare Fund, Internal
Trade, Inter-State Trade: The Spirituous Preparations (Inter-State Trade and
Commerce) Control Act, 1955, Control of Futures Trading: the Forward Contracts
(Regulations) Act, 1952.
[38]Meghdoot is title of a play in Sanskrit written by Kalidasa. It literally
means the cloud-messenger. Meghdoot Card service is introduced by Post
Department on September 2, 2002. Meghdoot Card is priced at 25 paise which is
half the cost of the regular post card.
Available at:http://www.indianphilatelics.com/cards/meghdoot-post-cards.html
[39]Official web site for National consumer helpline http://www.nationalconsumerhelpline.in
[40]Official web site for CCS is http://www.consumereducation.in
[41]Consumer movement or consumerism
The consumer movement is often called asConsumerism also; it is a recent and
universal phenomenon. As commonly understood consumerism refers to wide range of
activities of government, business and independent organisations designed to
protect rights of the consumers. Consumerism is a process through which the
consumers seek redress, restitution, remedy for their dissatisfaction and
frustration and consumers will be educated and become aware of his protection
with the help of their all organised or unorganised efforts and activities.
Consumers satisfaction will benefit not only business but government and
society as well. So consumerism should not be considered as consumers war
against business. It is a collective consciousness on the part of consumers,
business, government and civil society to enhance consumers satisfaction and
social welfare which will in turn benefit all of them and finally make the
society a better place to live in.here it is foremost important to remember
thatConsumerism as an effective and organised movement started in 1960s in the
USA. Ralph Nader, the well-known American advocate has lifted consumerism into a
major social force.
[42]Said by Thich Nhat Hanh
Available at : http://freeingthemind.blogspot.in/2014/02/awareness-quotes.html
[43]These words are said by Abraham Maslow,
Available at :https://www.brainyquote.com/quotes/keywords/awareness.html
[44]These words are said by Lao Tzu,
Available at :https://www.brainyquote.com/quotes/keywords/awareness.html
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