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| 1. Development | 2. Sectors Of The Indian Economy | 3. Money And Credit |
| 4. Globalisation And The Indian Economy | 5. Consumer Right | |
Chapter 5 Consumer Rights
This chapter examines consumer rights within the context of marketplace operations and potential exploitation. It aims to raise awareness about consumer issues and encourage participation in the consumer movement, highlighting the importance of rules and regulations to protect consumers.
Through case histories, the chapter shows how consumers have faced exploitation and how legal institutions have helped them seek justice and compensation. It traces the origin and evolution of the consumer movement in India, details organisations that support consumers, and discusses current challenges and critical issues in advancing consumer rights.
The Consumer In The Marketplace
Markets involve both producers and consumers interacting. While earlier chapters discussed rules for protecting producers (workers in unorganised sector, farmers from high interest rates), this chapter focuses on safeguarding consumers in the marketplace.
Producers And Consumers
We participate in the market in dual roles: as producers when we create goods or services (in agriculture, industry, or services) and as consumers when we purchase and use final goods and services to satisfy our needs.
Need For Rules And Regulations
Just as rules are needed to protect workers or the environment, they are also necessary to protect consumers in the marketplace. Individual consumers are often in a weak position compared to powerful sellers.
Exploitation In The Marketplace
Consumers can be exploited in various ways due to unfair trade practices. Examples include:
- Underweighting: Shopkeepers selling less quantity than promised.
- Hidden Charges: Adding charges not agreed upon beforehand.
- Adulterated/Defective Goods: Selling impure or faulty products.
- Shifting Responsibility: Sellers denying responsibility for issues once a sale is complete, claiming the buyer should have been more careful.
Exploitation is especially prevalent when producers are few and powerful (like large companies) while consumers are many, purchase in small quantities, and are scattered. Powerful companies can manipulate markets and use misleading advertising through media to attract consumers, as seen in historical cases involving baby milk formula claims or the concealment of health risks associated with cigarettes. These practices demonstrate the need for regulations to protect consumers.
Consumer Movement
The consumer movement arose out of widespread dissatisfaction with unfair practices by sellers and the lack of a legal system to protect consumers from exploitation.
Origin And Evolution
Historically, consumers dissatisfied with a product or shop would simply stop buying from them. It was widely assumed that the burden of being cautious rested solely on the consumer. It took many years for organisations globally to raise awareness among people about their rights as consumers.
In India, the consumer movement emerged as a 'social force' in the 1960s, primarily in response to rampant food shortages, hoarding, black marketing, and adulteration of food and edible oil. In its early stages (until the 1970s), the movement mainly involved writing articles and holding exhibitions. Consumer groups focused on exposing malpractices in ration shops and issues in public transport. Over time, the number of consumer groups in India significantly increased.
The movement's efforts have successfully pressured businesses and governments to improve business conduct and correct practices harmful to consumers. These efforts also contributed to a shift in responsibility, making sellers more accountable for the quality of goods and services.
Consumers International
At the international level, consumer protection gained momentum with the adoption of the UN Guidelines for Consumer Protection in 1985. This provided a framework for nations to implement consumer protection measures and encouraged advocacy groups to lobby their governments. Consumers International serves as a global umbrella body for over 200 consumer organisations in more than 100 countries, playing a key role in the international consumer movement.
Enactment Of Copra
A significant achievement of the consumer movement in India was the enactment of the Consumer Protection Act, 1986 (COPRA) by the Indian government. This law was a major step towards providing a legal framework for consumer rights and redressal.
Consumer Rights
COPRA defined several fundamental rights for consumers in India, empowering them in the marketplace.
Right To Safety
Consumers have the right to be protected against the marketing of goods and services that are hazardous to their life and property. This implies that producers must strictly adhere to necessary safety rules and regulations for goods and services that can pose risks (e.g., pressure cookers, LPG cylinders, medicines, building construction). However, weak enforcement of rules and insufficient consumer movement strength can lead to unsafe products in the market.
Example. Reji’s Suffering
Reji Mathew, a healthy boy studying in Class IX, was admitted in a private clinic in Kerala for removal of tonsils. An ENT surgeon performed the tonsillectomy operation under general anaesthesia. As a result of improper anaesthesia Reji showed symptoms of some brain abnormalities because of which he was crippled for life.
His father filed a complaint in the State Consumer Disputes Redressal Commission claiming compensation of Rs 5,00,000 for medical negligence and deficiency, in service. The State Commission, saying that the evidence was not sufficient, dismissed it. Reji’s father appealed again in the National Consumer Disputes Redressal Commission located in New Delhi. The National Commission after looking into the complaint, held the hospital responsible for medical negligence and directed it to pay the compensation.
Answer:
Reji's suffering is a clear example where the consumer's (Reji's) right to safety was violated due to negligence in the delivery of a service (medical care, specifically anaesthesia). The outcome shows that the legal system acknowledged the responsibility of the service provider (the hospital) for damages resulting from their negligence.
Right To Be Informed
Consumers have the right to be informed about the particulars of the goods and services they purchase. This includes details like ingredients, price, batch number, date of manufacture, expiry date, and manufacturer's address on packaged goods. For specific products like medicines, this extends to directions for use, side effects, and risks. Garments often have washing instructions. The Maximum Retail Price (MRP) is also printed, giving consumers the right to know the maximum price they should be charged.
This right enables consumers to make informed choices, complain about defective products (especially within the expiry period), and protest against overcharging (above MRP). It shifts responsibility to the manufacturer/seller for product information and quality.
The Right to Information (RTI) Act, 2005, enacted by the Government of India, significantly expanded this right, granting citizens access to information about the functioning of government departments. This empowers citizens to question delays or lack of transparency in government services.
Example. Waiting...
Amritha, an engineering graduate after submitting all the certificates and attending the interview for a job in a government department, did not receive any news of the result. The officials also refused to comply with her queries. She therefore filed an application using the RTI Act saying that it was her right to know the result in a reasonable time so that she could plan her future. She was not only informed about the reasons for delay in the declaration of results but also got her call letter for appointment as she performed well in the interview.
Answer:
Amritha's case is an illustration of the effective use of the Right to Information. When faced with a lack of response from government officials regarding her job interview result, she invoked her right under the RTI Act. This led to the government department providing the information she requested and ultimately issuing her appointment letter, demonstrating the power of the RTI Act in ensuring transparency and accountability in government functioning.
Right To Choose
Every consumer has the right to choose from a variety of goods and services offered in the market. Sellers cannot force consumers to buy specific items they don't want.
Instances like a shop owner only selling toothpaste if the consumer also buys a toothbrush, or a gas dealer insisting on buying a stove with a new connection, are violations of the consumer's right to choose. Consumers should be free to select the products or services they need without being tied to other purchases or suppliers.
Example. A Refund
Abirami, a student of Ansari Nagar, joined a two-year course at a local coaching institute for professional courses in New Delhi. At the time of joining the course, she paid the fees Rs 61,020 as lumpsum for the entire course of two years. However, she decided to opt out of the course at the end of one year as she found that the quality of teaching was not up to the mark. When she asked for a refund of the fee for one year, it was denied to her.
When she filed the case in the District Consumer Disputes Redressal Commission, the Commission directed the Institute to refund Rs 28,000 saying that she had the right to choose. The Institute again appealed in the State Consumer Com-mission. The State Commission upheld the District Commission’s direction and further fined the institute Rs 25,000 for a frivolous appeal. It also directed the institute to pay Rs 7000 as compensation and litigation cost.
The State Commission also restrained all the educational and professional institutions in the state from charging fees from students for the entire duration of the course in advance and that too at one go. Any violation of this order may invite penalties and imprisonment, the commission said.
Answer:
This case illustrates Abirami's right to choose whether to continue receiving a service (the coaching course). When she found the service quality unsatisfactory, she had the right to discontinue and receive a proportional refund for the service not received. The Commissions' verdicts, directing the refund and even prohibiting coaching institutes from charging full course fees upfront, uphold the consumer's right to choose and the right to service commensurate with payment.
Right To Seek Redressal
Consumers have the right to seek redressal or compensation against unfair trade practices and exploitation. If a consumer suffers any damage due to a faulty product or service, they have the right to receive compensation proportional to the damage incurred. This necessitates having accessible and effective public systems for resolving consumer disputes.
Where Should Consumers Go To Get Justice?
When consumers' rights are denied or they experience unfair practices, they need avenues to seek justice and compensation. The cases of Reji Mathew and Abirami illustrate instances where consumers approached legal bodies to get justice.
Filing A Complaint
Consumers who have suffered damage or been subjected to unfair trade practices can file a complaint in the appropriate consumer forum. They can do this on their own, without necessarily needing a lawyer. Complaints can be filed physically or online, and proceedings can sometimes be conducted via video conferencing. The case of Prakash, who filed a complaint regarding a delayed money order, illustrates the steps involved in filing a case with a District Consumer Disputes Redressal Commission.
Consumer Forums And Councils
The consumer movement in India has led to the formation of various organisations and councils at the local level. These are often called consumer forums or consumer protection councils. They play a crucial role in guiding consumers on how to file cases in the Consumer Disputes Redressal Commissions. In many instances, these voluntary organisations, which receive some government support, also represent consumers in the commissions or work to create awareness among people. Resident Welfare Associations in residential colonies are an example of such groups taking up cases on behalf of their members.
Learning To Become Well-Informed Consumers
To effectively exercise their rights, consumers need to be well-informed. Becoming a conscious consumer involves acquiring knowledge and skills to make informed choices in the marketplace.
Three-tier Redressal Machinery
COPRA established a three-tier quasi-judicial system for handling consumer disputes, making it easier for consumers to seek redressal:
- District Consumer Disputes Redressal Commission: Deals with claims up to $\textsf{₹}\,1$ crore.
- State Consumer Disputes Redressal Commissions (State Commission): Handles claims between $\textsf{₹}\,1$ crore and $\textsf{₹}\,10$ crore.
- National Consumer Disputes Redressal Commission (National Commission): Deals with claims exceeding $\textsf{₹}\,10$ crore.
If a case is dismissed at the district level, the consumer can appeal to the state commission, and subsequently to the national commission.
Right To Representation
The COPRA Act empowers consumers by granting them the right to represent themselves in these commissions. This means they can file and pursue cases without necessarily hiring lawyers, although professional assistance is also an option.
Acquiring Knowledge
Awareness about consumer rights and redressal mechanisms is crucial. Government departments of Consumer Affairs at the central and state levels work to spread information about these legal processes through various means, including posters and advertisements (in print and on television).
Isi And Agmark
Consumers should also be aware of standardisation marks that help assure quality. Logos like ISI (for industrial products), Agmark (for agricultural products), and Hallmark (for jewellery) indicate that the products meet certain quality standards set by monitoring organisations like the Bureau of Indian Standards. While adherence is not always compulsory for all products, it is mandatory for those affecting consumer health and safety or products of mass consumption like LPG cylinders, packaged water, cement, and food additives. Looking for these marks helps consumers make quality-assured purchases.
Taking The Consumer Movement Forward
India has made progress in the consumer movement since the enactment of COPRA in 1986, being one of the few countries with dedicated consumer redressal authorities. December 24 is observed as National Consumers' Day in India to commemorate the enactment of COPRA.
Progress And Challenges
The movement has grown in terms of the number of organised consumer groups (over 2000, though only about 50-60 are highly active). However, challenges remain. The consumer redressal process can still be cumbersome, expensive, and time-consuming. Gathering evidence is often difficult, especially since cash memos are not always issued for small retail sales. Despite the legal framework, enforcement of laws protecting workers and regulating markets is often weak.
Amendment Of Copra (2019)
COPRA was amended in 2019 to address some of these challenges and strengthen consumer protection. Key changes include:
- Including online purchases.
- Holding service providers and manufacturers responsible and liable to penalties/imprisonment for service deficiency or defective products.
- Encouraging settlement of disputes through mediation outside the commissions.
Need For Active Involvement
The consumer movement's effectiveness relies heavily on the active involvement and voluntary efforts of consumers themselves. It requires widespread participation and continuous struggle to ensure that consumers' rights are protected and promoted in the marketplace.
Summing Up
The chapter highlights the vulnerable position of consumers in the marketplace and the need for protection against various forms of exploitation. The consumer movement in India, driven by dissatisfaction with unfair practices, led to the enactment of COPRA in 1986.
COPRA defined several fundamental consumer rights, including the right to safety, information, choice, and redressal, and established a three-tier system for dispute resolution. Becoming a well-informed consumer involves being aware of these rights and mechanisms, including standardisation marks. While progress has been made, challenges like the complexity of the redressal process and weak law enforcement persist, underscoring the ongoing need for active consumer involvement to advance the movement and ensure fair treatment in the marketplace.