Consumer Rights, Awareness and protection In India?

Consumer Protection is a concept that was first introduced by John Fitzgerald Kennedy, the 35th President of the United States on 15^th March 1962. He spoke about this concept in a special speech to the Congress. His speech stressed protecting the consumer’s interest. Kennedy also spoke about the four basic rights of the consumer, namely:

·        Right to Safety

·        Right to be Informed

·        Right to be Heard

·        Right to Choose.

His discussion sparked a deliberation and subsequent legislation to protect consumers. 15^th March is celebrated as World Consumer Rights Day, taking inspiration from Kennedy.

Another important name in the international sphere while discussing consumer protection is Ralph Nader. He is the author of the book “Unsafe at Any Speed” which indicates the faulty design of automobiles. The book led to a series of landmark laws that have prevented multiple motor vehicle accidents thus curbing deaths and injuries. He revolutionized Consumer Protection in the United States of America.

In order to understand the development of consumer protection in India, it is important to trace the beginnings of the formation of the concept.

Ø Ancient India

Ancient India witnessed the supremacy of the Vedas as a religious text, coming from God himself. The Vedas was strictly followed by the majority in the ancient Indian society. A part from the Vedas, this period also gave rise to the Code of Chanakya, Manu Smriti, Narada Smriti and so on. These ancient codes contained provisions which sought to safeguard the interests of the consumer, with the aim of consumer safety. The punishment was also granted when the consumer-related provisions were gone against.

Among the Dharmas, the most authoritative texts are:

·        Manu Smriti

·        Yajnavalkya Smriti

·        Narada Smriti

·        Bruhaspati Smriti

·        Katyayana Smriti.

 Among these, Manu Smriti was the most influential.

Manu Smriti

Manu Smriti was all about the social, political and economic conditions of the society in the ancient times. It stressed on ethical trade practices, punishing those who were unfair to the consumers. Its prescribed code of conduct extended to adulteration as well, which is mixing of a commodity with another, resulting in impurity. All goods had a market price or a sale price, as set by the king. All weights and measures were inspected every six months, and the results of these inspections were kept a record of. Such efficient means of consumer protection has developed in such an early stage of settlement is noteworthy.

Kautilya’s Arthashastra

Kautilya’s Arthshastra clearly defined laws regulating weights and measures. A penalty was proposed traders who indulged in adulteration of goods namely grains, medicine, perfumes, salt and sugar. Arthashastra describes the role of the State in regulating trade and its duty to prevent crimes against consumers.[1] Black marketing and unfair trade practices were strictly looked condemned by Kautilya. There were punishments prescribed for different types of cheating, which were stringent. These fines could be as severe as cutting off the cheater’s hand. The rights of the traders were also well protected by the Arthashastra.

The Arthashastra was created during Chandragupta’s period. This period witnessed healthy trade practices where traders were to possess a license to sell, which was given on permission. The king granted a margin of profit to sellers while fixing sale prices. The State was responsible for protecting the consumers against unfair prices and fraudulent transactions. Such acts were punishable, including smuggling and adulteration, especially of food.Consumers were ensured this protection by an easily accessible justice system through different sets of courts. Providing justice was the duty of the king.

Medieval Period

A shift in the time period of India from ancient to medieval resulted in a focus on Islam as a religion and the laws of Islam. The Holy Quran, the main text of the Muslims, also stressed the protection of consumers.The Quran has verses that indicate that the use of unjust weights and measures is unacceptable. During the period of the Sultanate, local conditions determined the price of commodities.[2] Hence, both the Hindu and the Muslim scriptures that were being used together by the kings of different states of India promoted consumer protection.

Like the Hindu texts, the Quran also contained various rules and regulations for protecting consumers from the unfair and unjust malpractices indulged in by sellers.During the rule of Alauddin Khalji, the market had been controlled by various injunctions and prescriptions. The king fixed prices of the grains. There was a strict price control mechanism implemented in the market. Different shopping areas were established for different goods, namely

·        Grains

·        Cloth, sugar, butter, oil and so on

·        Horses, slaves and cattle

·        Miscellaneous commodities.

Shopkeepers were also punished for under weighing their goods.

Modern Period

In the modern period, the previous traditional legal systems established by Indian kings were replaced by new modern laws. The British introduced the English Common Law in India along with other legislative measures for the public and in turn, the consumers.

Some of these legislations are as follows:

·        The Indian Contract Act, 1872

·        The Sale of Goods Act, 1930

·        Indian Partnership Act, 1932

·        The Agricultural Produce(Grading and Marketing) Act, 1937

·        The Drugs Act, 1940

·        The Drugs and Cosmetic Act 1940

These legislations proved to be immensely effective in saving the interests of the consumers during the time of the British. The rules were now uniform across the country and not arbitrary to the opinions of the various kings of the Ancient and Medieval periods.

Post-Independence Period  

When India attained independence, it adopted the Anglo-Saxon system of administration of justice.Hence, the previous legislation that was established by the British continued to function in independent India.

Along with the existing legislation, the country was on its path to more laws through the creation of the Indian Constitution and its adoption in 1950. Due to the democratic nature of the Constitution, the prime focus of the laws was the benefit of the general public, who were also consumers.

Certain implications of the Indian Constitution that may apply to consumers are as follows:

Article 14 of the constitution implies equality before the law and equal protection of laws. This results in manufacturers, producers, traders, sellers and consumers having an equal position before the law.

Article 39 has two clauses, (b) and (c), according to which the state is bound to direct its policy to ensure the distribution of the ownership of the material resources of the society. This distribution should be done to serve the common good.

According to Article 43, the state must strive to develop an economic organization or to make legislation in order to secure a decent standard of life to all the workers.These workers are the ones who constitute the bulk of the consumers.

The new legislation enacted after Independence are as follows:

·        The Prevention of Food Adulteration Act, 1954

·        The Essential Commodities Act, 1955

·        The Monopolistic Restrictive And Unfair Trade Practices Act, 1969

·        The Standard of Weights And Measures Act, 1976

·        The Bureau of Indian Standards Act, 1986

·        The Consumer Protection Act, 1986

·        The Trade Marks Act, 1999

·        The Competition Act, 2002

The Consumer Disputes Redressal agencies- the National Commission, the State Commission, and the District Forum soon started working and has rapidly resulted in quick action taken against those who exploit the consumers.

The efficient justice system in the sphere of consumer protection that we see today is a resulted of all these previous developments that have taken place in the past. This advanced system and its roots must be appreciated.

Ø Consumer Rights In India

For every company on paper, the customer is the king. Then why do so many customers get poor service (or goods)? Because sometimes (or most of the times, depending on the company), profit takes priority (among others factors) over serving the customers.That’s why we have the Consumer Protection Act. Consumer Protection Act, 1986 seeks to promote and protect the interest of consumers against deficiencies and defects in goods or services. It also aims to secure the rights of a consumer against unfair or restrictive trade practices.

1. Right To Safety

This is the first and the most important of the Consumer Rights. They should be protected against the product that hampers their safety. The protection must be against any product which could be hazardous to their health – Mental, Physical or many of the other factors.

Right to safety means the right to be protected against the marketing of goods and services, which are hazardous to life and property. This act is applicable in areas like healthcare, pharmaceuticals and food processing are domains having a severe impact on the health of the consumers or well being.  This right needs each product which can potentially be a danger to our lives to be marketed after adequate and complete verification as well as validation.

2. Right To Information

They should be informed about the product. The product packaging should list the details which should be informed to the consumer and they should not hide the same or provide false information.

Right to information means right to be informed about the quality, quantity, potency, purity, standard and price of goods to protect the consumer against unfair trade practices. A consumer should emphasize on getting all the information about the product or service before making a purchase, ensuring the consumer doesn’t fall prey to high-pressure selling techniques.

3.Right To Choose

They should not be forced to select the product. A consumer should be convinced of the product he is about to choose and should make a decision by himself. This also means consumer should have a variety of articles to choose from. Monopolistic practices are not legal.

Right to choose means the right to be assured, wherever possible of access to a variety of goods and services at a competitive price. In the case of monopolies, it means the right to be guaranteed of satisfactory quality and service at a fair amount.In other words, no seller can unfairly influence the choice of the customer, and if any seller does so, it will be considered as interference with his right to choose.

4. Right To Be Heard

If a consumer is dissatisfied with the product purchased then they have all the right to file a complaint against it. And the said complaint cannot go unheard, it must be addressed in an appropriate time frame.

Right to be heard means that consumer’s interests will receive due consideration at appropriate forums. The consumers also have the right to be represented in different forums established to consider the consumer’s welfare.The right is provided to enable the consumers for putting forward their complaints and concerns against products or even companies to ensure that their interests are taken into consideration as well as handled expeditiously.

5. Right To Redressal

In case a product is unable to satisfy the consumer then they have the right to get the product replaced, compensate, return the amount invested in the product. We have a three-tier system of redressal according to the Consumer Protection Act 1986.

Right to redressal means right to seek redressal against unfair trade practices or unscrupulous exploitation of consumers. Also ensuring the right to a fair settlement of the legitimate grievances of the consumer. This right affords compensation to the consumers against unethical trade practice of the seller. For instance, if the quantity and quality of the product do not adhere to those guaranteed by the seller, the buyer has the right to claim compensation. The Consumer courts like District Consumer Disputes Redressal Forums at the district level, State Consumer Disputes Redressal Commissions, and National Consumer Disputes Redressal Commissions have been incorporated with the help of the Consumer Protection Act., so that consumers can see redressal.

6. Right To Consumer Education

Consumer has the right to know all the information and should be made well aware of the rights and responsibilities of the government. Lack of Consumer awareness is the most important problem our government must solve.

Right to consumer education means the right to acquire the knowledge and skill to be an informed consumer throughout life. This is to ensure that the consumers understand all consumer rights and must exercise them. Consumer education might refer to formal education through college and school curriculums as well as consumer awareness campaigns being run by non-governmental and governmental agencies both. 

Question: Explain the following rights: (a) The right to safety (b)The right to consumer education.

Ans: Let us take a look at the two rights:

    The right to safety: It refers to the right to be protected against products, production processes and services that endanger the physical health or well being of the consumer.

    The right to consumer education: It refers to a right that protects the consumer from various large companies of the products and services they sell. It is basically about informing people and giving them the required knowledge for living in a consumer society.  These rights and exercises must be followed by every consumer.

 

Ø Consumer Protection Act, 2019

consumer can cheer as the Consumer Protection Act, 2019 has recently replaced the three decade old Consumer Protection Act, 1986.

The new Act proposes a slew of measures and tightens the existing rules to further safeguard consumer rights. Introduction of a central regulator, strict penalties for misleading advertisement and guidelines for e-consumer and electronic service providers are some of the key highlights.

Consumer courts
Consumer redressal commissions, aka consumer courts, are present at the district, state and national levels to address consumer complaints. The Act has increased the pecuniary jurisdiction, which means ability of courts to take up cases depending on the value of the case, of the consumer courts. “Since access to district courts is better compared to state and national commissions, the increase in limit to Rs 1 crore of district courts will be a convenience point,” says M.R. Madhavan, Co-Founder and President, PRS Legislative Research.

Another crucial change says that now the money spent on buying the product till that time will determine the value of the case as opposed to the previous parameter of total value of the purchased goods/service. “Say something is bought on discount, it’s only fair that the amount the consumer has paid is the determiner in place of the MRP,” says Madhavan.

In another move, the Act allows consumers to file their complaint with the court from anywhere. This comes as a big relief as earlier they were required to file complaint in the area where the seller or service provider was located. This is a fitting move considering the rise in e-commerce purchases, where the seller could be located anywhere. In addition, the Act also enables the consumer to seek a hearing through video conferencing, saving him both money and time.

What has changed in the new Act?
Product liability
The Act has proposed provisions for product liability under which a manufacturer or a service provider has to compensate a consumer if their good/service cause injury or loss to the consumer due to manufacturing defect or poor service. For instance, if a pressure cooker explodes due to a manufacturing defect and harms the consumer, the manufacturer is liable to compensate the consumer for the injury. Earlier, the consumer would only be compensated with the cooker’s cost. The consumer could ask for compensation, but through a civil court, which usually takes years to resolve a case, and not consumer forum.

The most significant impact of this provision will be on e-commerce platforms as it also includes service providers under its ambit. “Product liability is now extended to service providers and sellers along with manufacturers. This means e-commerce sites cannot escape as aggregators anymore,” says Mukesh Jain, Founder, Mukesh Jain & Associates.

E-commerce under the radar
E-commerce will now be governed by all the laws that apply to direct selling. The guidelines propose that platforms like Amazon, Flipkart, Snapdeal etc will have to disclose sellers’ details, such as their address, website, email, etc and other conditions related to refund, exchange, terms of contract and warranty on their website to increase transparency.

The onus of ensuring that no counterfeit products are sold on these platforms will also most likely lie with the companies. If any such product is reported or recognised, the company could be penalised. This move is fitting since cases of fake products sold through e-commerce platforms is rampant. A survey by a social community platform Local Circles conducted in December last year showed that 38% respondents out of 6,923 were sold counterfeit products from an ecommerce site in one year. These guidelines are open for public comment until 15 September.

Separate regulator
The Act proposes establishment of a central regulator, Central Consumer Protection Authority (CCPA), to address issues related to consumer rights, unfair trade practices, misleading advertisements and impose penalities for selling faulty and fake products. Broadly, regulatory moves of CCPA will be directed towards the manufacturers, sellers and service providers and will not address customers’ grievances and disputes directly. Nevertheless, the overall purpose of CCPA is to strengthen the existing consumer rights.

 

Consumer Awareness, Consumer Rights and Responsibilities

Consumer Awareness is an act of making sure the buyer or consumer is aware of the information about products, goods, services, and consumers rights. Consumer awareness is important so that buyer can take the right decision and make the right choice. Consumers have the right to information, right to choose, right to safety. Let us learn more about Consumer rights, responsibilities and consumer awareness in detail.

Consumer Rights and Responsibilities- Consumer Rights is an insight into what rights consumer holds when it comes to seller which provide the goods. What if the goods provided to the consumer by the business is not up to the standard? Then in that case – what should a consumer do? To be precise, what rights consumer have is in the court of law to fight against the malpractices of the business firms or seller.  

Consumer Awareness

What Is the Meaning of Consumer Awareness?

Consumer Awareness is the process of making the consumer of goods and services aware of his rights. It involves educating a consumer about safety, information and the redressal options available to him Consumer awareness is one of the most persistent problems the government faces when it comes to consumer protection. To resolve this problem the government has come up with various methods over the years. In fact, it is the main aim of the Department of Consumer Affairs.

·       The consumer has a certain responsibility to carry as an aware consumer can bring changes in the society and would help other consumers to fight the unfair practice or be aware of it.

·           They should be aware of their rights under the Consumer Protection Act and should practice the same in case of need.

·           They should be well aware of the product they are buying. Should act as a cautious consumer while purchasing the product.

·           If in case a product is found of anything false or not satisfactory a complaint should be filed.

·           The consumer should ask for a Cash Memo while making a purchase.

·           A customer should check for the standard marks that have been introduced for the authenticity of the quality of the product like ISI or Hallmark etc.

Consumer Awareness in India

One of the most important and successful Consumer Awareness campaign in recent times has been the “Jago Grahak Jago” campaign. You must have certainly come across it. It is a great example of successful consumer awareness.