An
Empowered Consumer is an Asset to the Nation
24th
December is observed as “National Consumer Rights Day” in India, since on this
day the Consumer Protection Act, 1986 was enacted. The Consumer Protection Act
provides for effective safeguards to consumers against various types of
exploitations and unfair dealings, relying mainly on compensatory rather than a
disciplinary or preventive approach.
With a large
consumer base of 1.27 billion ( 52% males and 48% females) constituting nearly
17.31% of the world’s population, the demography of Indian consumer shows an
interesting pattern pointing towards a young consumer base which believes in
market mechanism. 30 % of the population lives in urban areas and the rest in
rural. The diversity itself is a major challenge for any consumer protection
regime.
The
Constitution of India provides for protection of rights of an individual and
also enjoins the State to adhere to the Directive Principles. The source of
consumer rights lies in the Fundamental Rights enshrined in our constitution.
The Consumer Protection Act provides for protection of the basic rights of a
consumer.
Consumer
Movement in India
Though the
consumer movement in India is as old as the trade and commerce, yet,
there was no systematic movement in the country for safeguarding the interests
of consumers till the Consumer Protection Act was enacted in 1986, based on the
United Nations guidelines with the objective of providing better protection of
consumers’ interests. The Act applies to all goods and services unless
specifically exempted, and covers private, public, and cooperative sectors and
provides for speedy and inexpensive adjudication. The Act also provides for
setting up of Consumer Councils to promote consumer welfare. The Act seeks to
promote and protect the following six rights of the consumers:
The right to be protected against marketing of goods and services which
are hazardous to life and property;
The right to be informed about the quality, quantity, potency, purity,
standard and price of goods and services, as the case may be, to protect the
consumer against unfair trade practices;
The right to be assured of access to a variety of goods and services at
competitive prices;
The right to be heard and assured that consumer interest will receive
due consideration at appropriate forums;
The right to seek redressal against unfair or restrictive trade
practices or unscrupulous exploitation of consumers;
The right to consumer education.
The Consumer
Protection Act
The Consumer
Protection Act, 1986 lays down the rights of the consumers and provides for
promotion and protection of the rights of the consumers. The first and the only
Act of its kind in India, it has enabled ordinary consumers to secure less
expensive and often speedy redressal of their grievances. The Act mandates
establishment of Consumer Protection Councils at the Centre as well as in each
State and District, with a view to promoting consumer awareness. The provisions
of this Act cover ‘goods’ as well as ‘services’. The goods are those
which are manufactured or produced and sold to consumers through wholesalers
and retailers. The services are in the nature of transport, telephone,
electricity, housing, banking, insurance, medical treatment, etc.
A written
complaint, can be filed before the District Consumer Forum for
goods/services valued upto Rs.20 lakh, State Commission for value upto
Rs one crore and the National Commission for value above Rs one
crore, in respect of defects in goods or deficiency in service. The
service can be of any description and the illustrations given above are only
indicative. However, no complaint can be filed for alleged deficiency in any
service that is rendered free of charge or under a contract of personal
service.
The remedy
under the Consumer Protection Act is an alternative in addition to that already
available to the aggrieved persons/consumers by way of civil suit. In the
complaint/appeal/petition submitted under the Act, a consumer is not required
to pay any court fees but only a nominal fee. Consumer Fora proceedings
are summary in nature. The endeavour is made to grant relief to the aggrieved
consumer as quickly as in the quickest possible, keeping in mind the provisions
of the Act which lay down time schedule for disposal of cases. If a consumer is
not satisfied by the decision of a District Forum, he can appeal to the State
Commission. Against the order of the State Commission a consumer can come to
the National Commission.
Government
Initiatives
· ‘Jago Grahak
Jago’ Though the consumer movement is slowly gaining ground in our
country as the success of consumer movement mainly depends upon the level of
consumer awareness generated in the country by educating the consumers about
their rights and responsibilities. Within India itself, the level of consumer
awareness varies from State to State depending upon the level of literacy and
the social awareness of the people. Educating more than 120 crores people of
various categories of population, particularly those in rural areas where
consumers are more susceptible to exploitation, on various subject matters of
consumers interests being dealt by different Ministries / Departments, is a
herculean task. For the 11th plan the scheme has received an
allocation of Rs. 409 crores to launch an effective Multi- Media campaign. The
scheme under the brand name of ‘Jago Grahak Jago’ has carved out a
niche for itself. For the 12th plan an allocation of Rs. 409.29 crores has
been made.
· Consumer
Welfare Fund
The Central
Excise and Salt Act, 1944 (1 of 1944) was amended in 1991 to enable the Central
Government to create the Consumer Welfare Fund where the money, which is not
refundable to the manufacturers etc., is credited. The money credited to the
Fund is to be utilized by the Central Government for the welfare of the
consumers in accordance with the Rules framed. The fund has been set up by the
Department of Revenue, but the Ministry of Consumer Affairs, Food and Public
Distribution will operate it.The overall objective of the consumer Welfare Fund
is to provide financial assistance to promote and protect the welfare of the
consumers and strengthen the voluntary consumer movement in the country
particularly in the rural areas.
· Consumer
Clubs
This scheme
was launched in 2002, according to which a consumer club shall be set up in
each Middle/High/Higher Secondary school/college affiliated to a government
recognized Board/University. This scheme has been decentralised and transferred
to the Governments of States/UTs with effect from 1.04.2004. All interested
NGO/VCOs shall apply to the Nodal Officer in the Food, PD & Consumer
Welfare Department of the respective States/UTs.
· Promoting
Research
This scheme
has been launched with a view to sponsor research and evaluation studies in the
field of consumer welfare to provide solution to the practical problems being
faced by the consumers, to sponsor seminars/workshops/ conferences on the
consumer related topics, and to have necessary inputs for the formulation of
policy/programme/scheme for the protection and welfare of the consumers. The
Indian Institute of Public Administration, New Delhi, has been identified as
the nodal organization to administer the scheme.
· National
Consumer Helpline
A National
Consumer Helpline project has been established in collaboration with Delhi
University, Department of Commerce. Consumers can call from anywhere in India
to the number 1XXX-XX-4000 from MTNL/BSNL lines free of charge and
get advice regarding their problem as a consumer. The Helpline has been
formally launched on 15.3.2005 on the World Consumer Rights Day and is
functional on all working days from 9.30 A.M to 5.30 P.M.
· CORE Centre
The Consumer
Online Resources and Empowerment Centre has been conceived to function as the
most scientific and effective system of collection, dissemination and redressal
of consumer related information and complaints. It was launched on the World
Consumer Day i.e. on 15th March, 2005. Consumers can now register their
complaints in the CORE Centre through the website www.core.nic.in.
They can also have access to wealth of information regarding Consumer issues
through this website.
· State Consumer
Welfare Fund
States/UTs
have to set up their own Consumer Welfare Fund by making a one-time
contribution of an amount proportionate to the number of districts, by the
Centre (Department of Consumer Affairs) and the State Government in the ratio
50:50 (Centre : State). In case of special category States, like North Eastern
States, Sikkim, J&K, Uttaranchal A&N Islands and Lakshdweep the ratio
will be 90:10 (Centre : State).
National
Consumer policy
Increased
global trade and the development of Internet have provided new opportunities
for consumers, leading to new forms of unfair and unethical business practices.
With the change in the global scenario and the market dynamics the consumers
have also changed. Children and young adults and women – who often lack
experience as consumers – are more significant forces in markets, as are the
growing number of older adults who sometimes face unique marketplace
challenges. This requires consumer protection authorities to be more vigilant
and active. The sophistication of retail markets is increasing the role of
consumers. The greater empowerment of consumers has also led to greater
responsibilities for them to manage their own affairs. Here comes the need to
make suitable policy prescriptions to protect consumer rights.
The draft
National Consumer policy envisages to promote the rights and interests of
consumers and ensure a high level of consumer protection, contributing to
protecting the health, safety and economic interests of consumers as well
as promoting their right to information, education and to organise
themselves to safeguard their interests. It will endeavour to achieve effective
implementation of various consumer welfare schemes through progressive consumer
related legislations and active participation of all stakeholders; Central and
State Governments, academic and research institutions, schools and colleges,
voluntary consumer organizations and civil society, business and above all the
consumers themselves to create an effective consumer movement in the
country.
.
An empowered
consumer is an asset to the nation and therefore today, it is widely
acknowledged that the level of consumer awareness and protection is one of the
major indicators of development in any country.
* 24th December is observed as “National Consumer
Rights Day” every year.
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