Chapter Notes

The Consumer in the Marketplace

We participate in the market in two main ways: as producers of goods and services (working in agriculture, industry, or services) and as consumers who purchase these goods and services for final use.

Just as rules and regulations are needed to protect workers in the unorganised sector or borrowers from moneylenders, they are also essential to protect consumers in the marketplace.

Exploitation in the Marketplace

Individual consumers often find themselves in a weak position. When a complaint arises, sellers frequently try to shift all responsibility to the buyer. This exploitation can happen in several ways:

• Unfair trade practices: Shopkeepers might weigh less than they should, add charges that weren't mentioned beforehand, or sell adulterated or defective goods.
• Market manipulation: When producers are few and powerful (especially large companies), they can manipulate the market. They might use their wealth and reach to pass on false information through media to attract consumers.

This imbalance highlights the need for rules and regulations to ensure consumer protection.

Consumer Movement

The consumer movement began because of widespread dissatisfaction among consumers with the unfair practices of sellers. Initially, there was no legal system to protect consumers from exploitation. It was generally assumed that it was the consumer's responsibility to be careful when buying something.

Over many years, organisations in India and around the world worked to create awareness. This shifted the responsibility for ensuring the quality of goods and services onto the sellers.

The Movement in India

In India, the consumer movement started as a 'social force' to protect consumers from unethical trade practices. Several factors gave rise to its organised form in the 1960s:

• Rampant food shortages
• Hoarding and black marketing
• Adulteration of food and edible oil

In the 1970s, consumer organisations were mainly involved in writing articles and holding exhibitions. They formed groups to monitor malpractices in ration shops and overcrowding in public transport. Later, the number of consumer groups in India grew significantly.

These efforts put pressure on businesses and the government to correct business conduct that was unfair to consumers. A major step was taken by the Indian government in 1986 with the enactment of the Consumer Protection Act 1986, popularly known as COPRA.

Consumers International

On an international level, the consumer movement gained a foundation in 1985 when the United Nations adopted the UN Guidelines for Consumer Protection. This provided a tool for nations to adopt measures to protect consumers. Today, Consumers International is an umbrella organisation for over 200 member organisations from more than 100 countries.

Consumer Rights

Safety is Everyone's Right

Consumers have the right to be protected against goods and services that are hazardous to life and property. Producers must strictly follow safety rules and regulations. For many products, like pressure cookers with their safety valves, high quality is essential to prevent serious accidents. However, due to weak supervision of rules, poor quality products are still found in the market.

Information about Goods and Services

Consumers have the right to be informed about the details of the goods and services they purchase. This is why manufacturers are required to display certain information on packaging, such as:

• Ingredients used
• Price (including the Maximum Retail Price or MRP)
• Batch number
• Date of manufacture and expiry date
• Address of the manufacturer

This information allows consumers to complain and ask for compensation or a replacement if a product is defective. For instance, if a product is found to be faulty before its expiry date, it can be replaced. Consumers can also complain if a seller charges more than the MRP.

In October 2005, the Government of India enacted the RTI (Right to Information) Act. This law gives citizens the right to obtain information about the functions of government departments.

When Choice is Denied

Any consumer, regardless of age or gender, has the right to choose whether to purchase a good or continue to receive a service. Sometimes, sellers try to deny this right by forcing consumers to buy things they may not want.

Where Should Consumers Go to Get Justice?

Consumers have the right to seek redressal against unfair trade practices and exploitation. If a consumer is harmed, they have the right to get compensation based on the degree of damage. The consumer movement in India has led to the formation of consumer forums or consumer protection councils, which guide consumers on how to file cases.

Under COPRA, a three-tier quasi-judicial system was established to handle consumer disputes:

1. District Consumer Disputes Redressal Commission: Deals with cases involving claims up to Rs 1 crore.
2. State Commission: Deals with cases involving claims between Rs 1 crore and Rs 10 crore.
3. National Commission: Deals with cases involving claims exceeding Rs 10 crore.

If a case is dismissed at the district level, the consumer has the right to appeal to the state and then the national level commissions. This system gives consumers the right to represent themselves in these commissions.

Learning to Become Well-Informed Consumers

When consumers become conscious of their rights, they can make informed choices. This requires acquiring the knowledge and skills to be a well-informed consumer. The enactment of COPRA led to the creation of separate Departments of Consumer Affairs in central and state governments, which work to spread awareness through posters and television advertisements.

To ensure the quality of goods, consumers should look for certification marks:

• ISI mark: For industrial products.
• Agmark: For agricultural products.
• Hallmark: For jewellery.

Taking the Consumer Movement Forward

India celebrates December 24 as National Consumers' Day, as it was on this day in 1986 that the Indian Parliament enacted the Consumer Protection Act.

While the consumer movement has made progress, with over 2000 consumer groups in the country, there are still challenges:

• Cumbersome process: The redressal process can be expensive, and time-consuming, often requiring lawyers.
• Lack of evidence: Cash memos are not always issued for purchases, making it difficult to gather proof.
• Slow awareness: Consumer awareness is spreading, but slowly.
• Weak enforcement: Laws protecting workers in unorganised sectors and regulations for markets are often not followed.

The COPRA was amended in 2019 to further strengthen consumer rights. The amendment now includes purchases made through the internet. It also holds service providers and manufacturers responsible for defective products or service deficiencies, with penalties including fines or imprisonment.

The success of the consumer movement depends on the active involvement and voluntary effort of all consumers.