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24
CONSUMER AWARENESS
Tosatisfyvariouswantspeoplepurchasegoodsandservicesbypayingprice.Butwhat
todoifthegoodsandservicesboughtarefoundouttobebadinqualityorunreasonably
pricedormeasuredlessinquantityetc.Insuchsituationstheconsumers,insteadof
gettingsatisfaction,feelcheatedbythesellerswhohavesoldthegoodsandservices.
Theyalsofeelthattheyshouldbeproperlycompensatedfortheloss.Sothereshould
beasystemtoreddresssuchissues.Ontheotherhandconsumersshouldalsorealize
thattheydohaveresponsibilitiesnotjustrights.
OBJECTIVES
Aftercompletingthislesson,youwillbeableto:
knowthemeaningofaconsumer,goodsandservicesandconsumerawareness;
understand the need for consumer awareness;
explain the consumer redressal system in India;
realise the rights and responsibilities of consumers;
understand the procedures for filing the complaints in the consumer courts;
know the challenges of consumers’ movement in India.
24.1 SOME DEFINITIONS
First let us know the meaning of - a consumer, goods and services and consumer
awareness.
Who is a consumer?
Tobeginwith,letusknowthedefinitionofaconsumer.Aconsumeristhebuyerofgoods
andservices.Theuserofgoodsandserviceswiththepermissionofthebuyerisalso
treatedasaconsumer.Butapersonisnotaconsumerifhe/shepurchasesgoodsand
servicesforresalepurpose.
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What are goods and services?
Goodsarethoseproductswhicharemanufacturedorproducedandsoldtoconsumers
throughwholesalersandretailers.Servicemeansserviceofanydescriptionwhichis
made available to the potential user with respect to the provision of facilities in
connectionwithbanking,finance,insurance,transport,supplyofelectricalorother
energy,housing,construction,watersupply,health,entertainment,amusementetc.It
doesnotincludeanyservicerenderedfreeofchargeorunderacontractofpersonal
service.
ConsumerAwareness
Consumerawarenessreferstothecombinationof thefollowing:
(i) Theknowledgeoftheproductpurchasedbytheconsumersintermsofitsquality.
Forexampletheconsumershouldknowwhethertheproductisgoodforhealth
ornot,whethertheproductisfreeofcreatinganyenvironmentalhazardornotetc.
(ii) Theeducationaboutthevarioustypesofhazardsandproblemsassociatedwith
marketing of a product - For example, one way of marketing a product is
advertisement through news papers, television etc. Consumers should have
propereducationaboutthebadeffectsofadvertisement.Theymustalsoverifythe
contentsoftheadvertisement.
(iii) Theknowledgeabout‘ConsumerRights’- Thismeansthat,first,theconsumer
mustknowthathe/shehastherighttogettherightkindofproduct.Secondly,if
theproductisfoundouttobefaultyinsomemanner,theconsumershouldhave
knowledgeofclaimingcompensationasperthelawoftheland.
(iv) Theknowledgeaboutconsumer’sownresponsibilities-Thisimpliesthatconsumers
shouldnotindulgeinwastefulandunnecessaryconsumption.
24.2 NEED FOR CONSUMER AWARENESS
Themarkettodayisfloodedwithverylargenumberaswellasvarietiesofgoodsand
services. The number of producers and final sellers of the commodities have also
increasedmanyfolds.Soithasbecomeverydifficulttoknowastowhoisagenuine
producerorseller?Itispracticallynotpossibleforconsumerstopersonallycomein
contact with a producer or seller. Moreover in the age of advanced information
technology the physical distance between consumer and producer/seller has also
increased,sinceconsumerscangettheircommoditiesatdoorstepbybookingorders
over telephone or through internet etc. Similarly from among large varieties of
commodities,ithasbecomeverydifficulttoknowastowhichoneisgenuine?People
thinkthataproductwhichhasappearedinsomeadvertisementmustbegoodorthe
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producerwhosenameisknownthroughadvertisementmustbesellingtherightproduct.
Butthismaynotbetruealways.Muchinformationisdeliberatelyhiddenincertain
advertisementstomisleadtheconsumers.
Incaseofpackedfoodproductsandmedicines,thereisanexpirydatewhichimplies
thattheparticularproductmustbeconsumedbeforethatdateandnotatallafterthat
date.Thisinformationisveryimportantbecauseitinvolvesthehealthoftheconsumer.
Some times it so happens that either such information is not provided or the seller
deliberatelydidnotgivetheinformationsincetheconsumerdidnotaskforitornotice
theinscriptionwrittenontheproduct.
Italsohappensmanytimesthataconsumerbuysgoodsandserviceswithouttakingthe
billorthesellerdoesnotprovidethebill.Thisisdonetoavoidpayingtaxontheproduct
tothegovernment.Suchataxisvalueaddedtax(VAT)i.e.atypeoftaxthatisplace
onaproductwhenevervalueisaddedatastageofproductionandatfinalsale.Ifthis
taxisincludedthenpriceoftheproductwillbehigherbecauseofthetaxandaccordingly
itwillbeacknowledgedbyprovidingthebill.Butinordertoattracttheconsumerby
sellingtheproductatalowerprice,thesellerdeductsthetaxandsodoesnotprovide
thebill.Justbecausethepriceislesstheconsumeralsodoesnotbothertoaskforthe
bill.Suchpracticecreatestwoseriousproblems.One,thegovernmentisdeprivedof
itstaxrevenueandtwo,theconsumermaysufferiftheproductcomesouttobefaulty
andhe/shecannotevenreturntheproductorfileacomplaintsincethereisnobilltogive
proofofpurchase.
Another major issue is that the consumers are not united. Producers have become
stronger and organised because there are Producers’and Traders’Associations to
protecttheirinterest.Butthebuyersarestillweakandunorganised.Asaresultthe
buyersaredupedanddeceivedquiteoften.
Because of the above arguments it is very important for consumers to protect
themselvesfromtheunfairtradepracticesofthetradersandserviceproviders.They
needtobeawareoftheirrightsasconsumersandusethempromptly.
Itshouldbenotedthatconsumerawarenessisnotjustonlyaboutconsumers’rights.It
isawellknownfactthatmanyconsumersaroundtheworldhavebeenindulgingin
mindlessandwastefulconsumptionbecauseoftheirmoneypower.Thishasdividedthe
society into rich consumers and the poor. Similarly many consumers are also not
botheredaboutthesafedisposalofwastesafterconsumptionisoverwhichcauses
environmentalpollution.Byagreeingtopayalowerpricefortheproductwithoutasking
for the bill, many consumers indirectly help the sellers to avoid paying tax to the
government. Hence there is also need for consumer awareness to educate the
consumersabouttheirresponsibilities.
Consumersalsoneedtoactmoreresponsiblyandjoinhandswiththegovernment.
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INTEXT QUESTIONS 24.1
1. Whoisnotaconsumer?
2. Whymusttheconsumerstakethebillonpurchaseofaproduct?
3. WhatisVAT?
24.3 CONSUMER REDRESSAL SYSTEM IN INDIA
Thereislegalandadministrativemachineryworkinginthefieldofconsumereducation
inourcountry.Itisimportantforyoutounderstandit.
Consumerredressalsystemisasystemunderwhichtheconsumerscanfileacomplaint
in a consumer court and demand justice when they are cheated by the sellers or
manufacturersofthecommodityorservicetheybuy.ItcomprisesoftheLawsto
protect the interest of the consumers and the Institutions to enforce the laws
toupholdconsumers’rights.Thankstothegovernment,wehaveconsumerlaws
madethroughlegislationsinourcountrywithaspecialfocusonconsumereducation.
The purpose is to help the people understand their rights and responsibilities as
consumersandtoredresstheirgrievance.TherearealsoexistenceofInstitutionsinthe
formofgovernmentdepartmentsandconsumercourtstodealwiththegrievancesofthe
affectedconsumers.Letusdiscussthembelow.
24.3.1 Government Legislations
Wehavehadseveralgovernmentlegislationsinourcountryevenbeforeindependence
toprotecttherightsoftheconsumers.ButConsumerProtectionAct1986(CPA)isthe
mostimportantoneandgivesyouasaconsumerallthesupportandguidanceagainst
violationofyourrights.CPAisspecificallydesignedtoprotectconsumerinterest.
There are a couple of other legislations aimed at providing consumer protection,
enactedafterindependence,likePreventionoffoodadulterationAct(PFA)1954,the
EssentialCommoditiesAct,1955(ECA)andtheStandardofWeightsandMeasures
Act(SWMA)of1976.
TheCPAwasenactedwiththeobjectiveofproviding‘cheap’,‘simple’and‘quick’
justicetothemillionsofconsumersinthecountry.Itensuresjusticewhichislessformal,
involveslesspaperwork,cutdelaysandislessexpensive.CPAappliestoallgoodsand
services,unlessspecificallyexempted.Itcoverstheprivate,publicandcooperative
sectors.Italsoempowersaconsumertohaulupmunicipalauthoritiesinconsumer
courtsiftheyfailtoprovidealltheservicesrangingfromstreetlightinganddrinkingwater
todrainageandhealth.
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AmongothermeasuresincludedinCPAsomerecentonesare:
Consumersareallowedtodecidewheretheywanttoseekredressal.
Acompanycannotinsistonbeingliabletobetriedonlyinacourtofitschoice.
Consumersareallowedtosueserviceprovidersofacompanyforpassingontheir
personalinformationtosalespersonse.g.banks,insurancecompanyetc.
Realestatedevelopersareclassifiedastradersandliabletobetriedinaconsumer
court.
Oversees agencies operating through e-commerce sites on the internet or
telemarketingarenotallowedtoselltheirproductsunlesstheymaintainanofficein
India.Theyhavetoorganisetheinspectionofgoodspriortopurchase,orrefund
goodswithin30days.
Officialsandstakeholderslikestategovernmentdepartmentsofpostandtelecom,
passportoffices,municipalservices,CentralGovernmentHealthScheme(CGHS)
andrailwaysaredemandingexemptionfromtheActfearing,theywillhavetoface
abarrageoflitigation.
INTEXT QUESTIONS 24.2
1. GivethefullformofCPA,ECA andSWMA?
2. HowcanaforeignagencysellitsproductinIndia?
24.3.2 Institutions to Deal with Consumers’ Grievances
ThecitizensofIndiahaveanInstitutionalmachinery,todealwithconsumers’grievances,
workingatalllevels:national,stateanddistrict.Therearetwotypesofinstitutions-(i)
GovernmentCouncilsand(ii)ConsumerCourts.Besidesthistherearealsoseveral
Non-GovernmentalOrganizations(NGOs)registeredunderthegovernmentlawwhich
providevariouskindsofsupporttotheaggrievedconsumers.
(i)GovernmentCouncils
Readthefollowingflowcharttoknowthegovernmentcouncilsworkingatnationaland
statelevels.
ConsumerProtectionMachineryatthegovernmentslevel
CentralConsumerProtection StateConsumerProtection
Council Council
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AsshowninthechartthereisaCentralConsumerProtectionCouncil(CCPC)atthe
NationalLevelwhichisheadedbyaCentralMinisterin-chargeoftheConsumerAffairs
intheCentralGovernmentatNewDelhi.AttheStateLevelthereisaStateConsumer
ProtectionCouncil(SCPC)ineachstateofIndiawhichisheadedbyaStateMinister-
in-chargeoftheConsumerAffairsintheStateGovernment.
Consumer Courts
Read the following flow chart to know the types of Consumer Courts working at
nationalandstateanddistrictlevels.
ConsumerCourtsinIndia
NationalConsumer StateConsumer DistrictConsumer
DisputesRedressal DisputesRedresal Forum(DCF)
Commission Commission
(NCDRC) (SCDRC)
Asgiveninthechart,therearethreelayersofConsumerCourtsinIndia.Atthebottom
istheDistrictConsumerForum(DCF)atthedistrictlevelinthestate.Thereare604
DistrictForumsinthecountrynow.
AtthemidlevelthereisStateConsumerDisputesRedressalCommission(SCDRC).
Thereare35StateCommissionsinthecountry.
Finally at the top there is an apex body known as National Consumer Disputes
RedressalCommission(NCDRC)workinghand-in-handtoprovidecheap,speedy
andsimpleredressaltoconsumerdisputesinthecountry.
AConsumerCourtisquasi-judicialinnatureandisdirectlyaccountabletothepeople.
Thecentralandthestategovernmentsareresponsibleformakingpolicieswithrespect
totheworkingofthesecourts.
24.3.3 Redressal Mechanism
Nowthequestionarises-Howaconsumerwhofeelscheatedcangetjusticeorrelief
intheformofcompensations?Forthisheorshecanapproachanyconsumercourtby
filingawrittencomplaintonhis/herownorthroughalawyer.Theparticularcourtthat
he/shemustapproachdependsonthevalueofthecommodity.Incaseofanyproduct
orinrespectofaservicevaluinguptoRs.20lakhstheaffectedconsumercanfilea
writtencomplaintbeforetheDistrictConsumerForums.IfthevalueisuptoRs.1crore,
thenhe/shehastoapproachtheStateCommission.Finally,forvalueaboveRs.1crore,
theconsumershouldapproachtheNationalCommissionforgrantofrelief.According
toCPAthereliefshouldbegivenwithin90-150daysandifaconsumerisnotsatisfied
bythedecisionoftheDistrictForumhe/shecanchallengethesamebeforetheState
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Commissions.IfstillnotsatisfiedwiththeorderoftheStateCommission,theconsumer
cangototheNationalCommission.
24.3.4 What You Need To Do? How to file a Complaint?
Forfilingacomplaint,theaggrievedconsumermustalwayskeepthecashmemo,receipt
orbilloftheproducthe/shehaspurchased.Theformattofileacomplaintislocatedon
thebookletprovidedbyconsumerprotectionAct.Thenthepersonmustselectthe
propercategoryunderwhichhe/sheisfilingthecomplaint.Thesecategoriesare-unfair
tradepractice,deficiencyofserviceetc.Thenthenatureofthecomplaintneedstobe
explainedinsimplewords.Theconsumershouldbeclearaboutthefaultandwhathe/
shewantsasaremedyi.eareplacementorarefundorcompensationincaseofaservice.
Thedocumentslikethereceiptorotherevidencesmustbeattachedalongwiththe
complaint.Therehastobethreecopiesoftheentireset;oneforthecomplainant,one
fortheotherpartyagainstwhomthecomplainthasbeenmadeandonefortheconsumer
court.Somenominalfilingfeeshavetobepaidtothecourtbythecomplainantinthe
formofademanddraft.
Itshouldbenotedthatacomplaintshouldbefiledwithin2yearsofthedateonwhich
thedefectoccurs.Thisisnotdependentonthepurchasedate.Theaffectedconsumer
caneitherappearinperson,sendarepresentativeoralawyerorevenaletter.Incase,
acomplainanthasdied,hislegalhairscangotothecourt.Ifnotsatisfiedwithdecision
ofthelowercourt,thepersonmustappealtoahighercourtwithin30daysofthelower
courts’order.Remember,however,thatthecourtcanfineyouuptoRs.10,000/-ifit
thinksthattheconsumerhasfiledafrivolouscomplaint. Checkthelatestrulesbyvisiting
localconsumerrightsofficeroronlineatthewebsites-ncdrc.nic.inandcore.nic.in.
Nowadayscommunicationthroughinternethasbecomeawayoflife.Soapersoncan
alsomailthecomplaint.Thee-mailID/Websiteisprintedonthecoveroftheproduct.
24.3.5 Role of NGOs
Incasetheproducer/company/sellergivestheaggrievedpartyacoldshoulderthenthe
roleofnon-governmentalorganisationsi.eNGOsbecomesveryimportant.Onecan
lodge complaints with some NGO’s like Consumer Grievance (www.consumer
grievance.com),ConsumerGuidanceSocietyofIndia(www.cgs_india.org),Common
Cause(www.commoncauseindia.org)andConsumerForum(www.consumer.org.in).
NGOsnotonlyhelpinfilingacasebutalsotheyprovidelogistic,manpowerandother
supports.NGOsalsoconductvariousprogrammestoeducateconsumersabouttheir
rightsandresponsibilities.
OnecanalsoapproachconsumerhelporganisationcalledJagoGrahakJago.Almost
everynewspaperprovidescompleteinformationaboutitthroughadvertisement.The
onlinegrievanceformcanbehadbyvisitingthesite.
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Someotherwebsitesforbanking,insurance,taxandtelecomrelatedproblemsare:
www.banking_ombudsman.rbi.org.in
www.irdaindia.org
www.incometaxindia.gov.in
www.trai.gov.in
24.3.6 The Grounds for Filing a Complaint
ThedeficiencyinaserviceisoneofthegroundsforfilingacomplaintundertheAct.The
termsdeficiencyhasbeendefinedasanyfault,imperfection,shortcomingorinadequacy
inthequality,natureandmannerofperformancewhichisrequiredtobemaintainedby
orhasbeenundertakentobeperformedbyapersoninpursuanceofacontractorother
wiseinrelationtoanyservice.Compensationhastobepaidbythewrongdoerfortheir
faultyordefectivegoodsandservices.
INTEXT QUESTIONS 24.3
1. Namethegovernmentcouncilswhichdealwithconsumergrievancesatnationaland
statelevels?
2. Nametheconsumercourtsatnationalandstateanddistrictlevels?
3. Whenacomplaintcanbefiledintheconsumercourt?
24.4 CONSUMERS’ RIGHTS
Thepurchaseofgoodsandservicesentitlesyoutocertainrightsasaconsumer.They
areasfollows.
24.4.1 Right to Information
Thisrightstatesthatsellersandproducersshouldalwaysprovideconsumerswith
enough and appropriate information regarding the price, weight, company brand,
manufacturing&expirydates,qualityidentificationmarks,ingredients,contactlinksof
thecompanyandsoon,tomakeintelligentandinformedproductchoices.Hereisan
examplefromtheservicessector.
WhenacustomerwastryingtofindthelowestfaretotravelfromDelhitoBangalore,
theresultsofthesearchindicatedairfaresfromRs.1450onwards.Hechoseaflight
thatcostedRs.1500/-plustaxes.Hehasnoideawhatthetaxcomponentwas.As
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heproceededwiththebooking,hegottoknowthatRs.1500isthebasicfareand
onthat,taxesandotherfeescostanotherRs.3445andthefinalfarewillbeRs.4995.
Nowwhycan’ttheairlinesandportalsbemorehonestandtransparentandmention
theactualfareclearlyatthebeginning?Whyshouldtheymisleadconsumersinto
payingthreetimesmorethanwhattheyfirstsee?Youhavetobecautiousandget
full informations from such service providers who are concealing part of the
informationsonthebasisofwhichtheywouldlaterharasstheconsumers.
24.4.2 Right to Choose
TheconsumershavetheRighttoChooseregardingwhattobuyandwhatnottobuy.
Sometimeswhenyoureceiveaserviceorpurchaseagoodyoucannotdosobecause
youareforcedtobuythingsthatyoumaynotwishto.Theshopkeeperputsacondition
andyouareleftwithnochoice.Youasaconsumerloseyourrighttochoose.Readthe
casebelow:
“WhenSenthilappliedforanewgasconnection,littledidherealiseitwouldbethe
firststeptowardsatroublesomejourney.HewalkedintotheKumaranGasAgency
foraBharatGascylinder,assuminghewouldhavetopayRs.1500/-.Insteadhe
walkedoutpoorerbyRs.7000/-afterbeingforcedtobuyproductshedidnotreally
needsuchasapressurecooker,gaslighter;evenapacketofdetergent.Thereason;
theagencyinsistedthatitwasmandatoryforanewcustomertoacquirethewhole
‘kit’.SenthilcomplainedtotheConsumerOnlineResourceandEmpowerment
Centre(CORE)whichsentamailtotheagency.Withinaweekhewasrefunded
aboutRs.5000/-.Contrarytogeneralbelief,thiscustomerisaproofthatresolving
agrievanceneednotbelongandfinanciallydraining”.(IndiainfolineNewsService,
Mumbai,April2,2009)
24.4.3 Right to Safety
Thisrightprovidesprotectionagainstthemarketingofgoodsthatareunsafetothe
healthandlifee.g.adulterationinfood,medicines,electronicsandsoon.
24.4.4 Right to be Heard
This right ensures that consumers’ interest will be given due consideration in the
appropriateforums.ThisrightalsoempowerstheIndianconsumerstofearlesslyvoice
theircomplaintsagainstthedefectiveproductsandtheerringproducer/company/seller.
24.4.5 The Right to Seek Redressal
Incaseofcheating,fraudoranyotherinjusticeasexplainedabovetheconsumercan
getcompensationforthedamagecausedbytheunfairandexploitativetradepractices.
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Theredressalcourtsthroughtheirinterventionhelpconsumersgetjustice.
Letuslookintosomecaseswheretheretailersviolateconsumer’srighttoredressal
particularlyinrespecttogoodsboughtduringsale.
“Abusydoctorbought3pairsoftrousersatadiscountedpriceofRs.2000/-each,
duringasalefromawellknownretailbrandfromaparticularoutlet.Howevertohis
utter surprise, the fabric just gave way within a few wears, even before it was
washed.Onhiscomplaintapersonin-chargeofthecompanyshowroomtookback
onepairandsaid,itwouldbesenttothecompany’squalitycellfortesting.Ayear
haspassedandhehasneitherheardfromthecompany,norgotbackhistrousers.
Should the doctor not askfor his money andalso forcompensation for all the
discomfortundergoneinpurchasingthetrousers?Thedoctorhastherighttoseek
redressalasaconsumer.”
24.4.6 The Right to Consumer Education
Itmeanstohaveaccesstoprogramsandinformationthathelpconsumersmakebetter
decisionsbeforeandafterpurchase.Instructionsandguidelinesforconsumersare
issuedbythegovernmentdepartmentsandNGOs.Thishelpstheconsumerstotake
rightdecisionwithregardtopurchaseofacommodity.tobringTrademarksandLogos
authenticationmarkssuchasISI,AGMARK,BISandothereducationalcampaigns
doneinpublicinterest.
INTEXT QUESTIONS 24.4
Mentiontheappropriateconsumerrighttofileacomplaintwithregardtothefollowing
1. Apersonfallingsickafterconsumingapackagedfooditem.
2. Asellerforcingabuyertopurchaseacertainbrandofgoodsandnotshowingother
varietiesofgoods.
3. Samirwantstobuyacomputerandwantstoknowtheexactconfigurationfromthe
seller.
4. Rekhawascheatedbyasellerandwantstofileacomplaint.
5. Reshmahasgonetoadistrictconsumerforumagainstthelocalhospitaltoseek
compensation for wrong diagnosis for which she had to spend Rs. 2 lakhs
unnecessarily.
6. YouhaverequestedtheconcerneddepartmentofDelhiGovernmenttogiveyou
bookletonconsumerprotectionact.
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24.5 CONSUMERS’ RESPONSIBILITIES
Consumer education is not always about rights of the consumers, but also about
responsibilitiesandshoulderingthemhonestlyandsincerely.Letushighlightsomeofthe
issueshere.
24.5.1DealingwithAdvertisements
Advertisementshavebecomeapartandparcelofourlivesandevenifwetrywecannot
avoidthem.Companiesaretryingtoselltheirproductsbymakingattractiveaudio-
visuals,publishingonlythatpartwhichmaybeeyecatchingandhidingothercrucial
informationandsoon.Consumersneedtobecautiousofsuchdeceptiveadvertisements.
Childrenaretheworstvictims.Theyneedtobeguidedproperly.
24.5.2 Buying Quality Certified Products
Therearelotofproductswhicharecertifiedbyrecognisedagenciesassafetoconsume
andgoodinquality.ForexampletheIndianStandardInstitute(ISI)conductsquality
testingofmanyconsumergoods.IffoundpropertheproductislabelledwithISImark
on it. For many food products the quality assurance is certified by seal called
AGMARK.ConsumersshouldchooseproductswithISImarkandAGMARK.
Averyimportantthingbeforepurchasingfoodproductsormedicinesetcisthatthe
consumermustseetheexpirydate.
24.5.3 Demanding Bill of the Purchase
Everyconsumermustdemandthebillafterpurchaseofgoodsandservices.Thebillis
theproofofpurchaseandcanbeusedtoseekjusticeiftheconsumerfeelscheatedafter
buyingthecommodity.Throughthebilltheconsumeralsoensuresthatthegovernment
receivestaxontheproductbecauseitismandatoryforthesellertomentionthetax
amountonthebill.Suchactoftheconsumermakeshim/heraresponsiblecitizenofthe
country.
24.5.4 Being a Green Consumer
A consumer must consume those products which do not cause damage to our
environment. Plastic bag is one example which has caused serious damage to the
environment.Peopleshouldusebiodegradableproductswhichcaneasilymixwithsoil
andwateraftertheyaredisposedoff.Similarlypeopleshouldsaveelectricity,gasetc
byjudicioususe.Consumersarealsoresponsibleforautomobilepollutionintownand
cities.Theyshouldusepublictransportsystemandeco-friendlyvehicles.
24.5.5 Consumers as Managers
Consumerscanunitetogethertoprovidethemselvesandthecommunityatlargeofa
localityorvillagesomebasicneedssuchasdrinkingwatersupply,health,educationetc.
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It is the government who acts as the manager for delivery of services. But the
governmentdepartmentsareoftenblamedforinefficientanderraticdeliveryofsuch
services.Soconsumerscanunitetoprovidesuchservices. Readthefollowingstory:
Consumers as Managers
(AtruestoryfromGujrat)
Gujrathasmorethan13000village‘PaniSamitis’whichareactingasmanagersof
servicedeliveryatthevillagelevel.Thevillage‘PaniSamitis’areformedinGram
Sabhasthroughconsumers.Theymanagetheirin-villagesystemsforwatersupply
serviceuptothehouseholdlevel,withastrongsenseofownership.Theyarealso
testingthequalityofwaterandprovidingqualityassuranceuptotheconsumers’
level.
Communityengagementformakingpeopleasmanagershasresultedinreducingthe
costofdelivery,timelyandefficientdeliveryofwater,efficientrepairsofwatersupply
system,efficientutilizationofwaterresource,innovativetariffmechanismsmeasuresfor
sustainabilityofwaterresourceslikedeveloping‘checkdams’,pondsforrechargingof
groundwaterleadingtoconservationofwaterresourcesinthearea.
InavastcountrylikeIndiaconsumershavearesponsibilitytostandbythegovernment.
Youcanalsoplayaconstructiverolebyjoininghandswithyourlocalwater,electricity,
sanitationboards,throughthelocalfederationsofyourlocalityorGramSabhasofyour
village.
24.6 MAJOR CONCERNS OF CONSUMER MOVEMENT
IN INDIA
Forsuccessfulconsumermovementpeopleneedtobeeducated.Indiaisnotonlyhighly
populatedbutalsoculturallydiverseandhasvastnumberofilliterates.Sobringing
consumerawarenessisabigtask.Itisslowlypickingupandlotstobedoneinthis
regard.Twomajorconcernsare(i)spreadingconsumerawarenessinruralareaofIndia
and(ii)timelydeliveryofjustice.Letusbrieflydiscussthembelow.
24.6.1 Consumer Awareness in Rural India
Onaccountoftheglobalizationandliberalisation,increaseinmiddleincomeandhigh
incomepopulationinthevillagesourruralmarketsarealsoexpanding.Socompanies
arereachingwiththeirproductstoourruralmarketsaswell.Buttheruralconsumers
inIndiaaregenerallyignorantandilliterate.Sotheyareexploitedbythemanufacturers,
traders and service providers. Rural consumers face problems like fake brands,
spuriousproducts,lackwarrantiesandguarantees,imitation,unreasonablepricing,lack
ofvarietiesandsoon.Thereisaneedforspreadingconsumerawarenessintherural
areasmoreseriously.
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24.6.2 Timely Delivery of Justice
Youknowthatjusticedelayedisjusticedenied.Unlikethecivilcourts,theconsumer
courtsarequasi-judicialbodiesthatneedtofollowasimple,summaryprocedurefor
quickdisposalofcomplaints.Howeverrepeatedadjournments,delaysonthepartof
thestategovernmenttofillupthepostsofjudgesandunnecessarytechnicalitiesslow
downtheprocessofjusticefortheconsumers.Delaysoftentakeawaytheessenceof
thelaw.Readthefollowingcasethatillustratesthesepoints.
Followinglossofyieldduringthesowingseasonof1993duetodefectivehybrid
cottonseedssoldtothem,130farmersfromMaharashtrafiledaclassactionsuit
seekingcompensation.Eventually,theywonthecase,butitlook14yearsduring
whichtimetenfarmershaddied.
The Government amended CPA in 2003 to eliminate such delays. Accordingly,
consumercourtsarenottogiveadjournmentsatall.Inexceptionalcircumstanceswhere
itisgiven,thecourthastorecordthereasonsforitinwritingandjustifyit.
INTEXT QUESTIONS 24.5
1. Whatshouldyoudoasaresponsibleconsumerinthefollowingcases
(a) Topurchaseanelectricironfromamongseveralbrandsavailable
(b) Youarepurchasingbreadandfruitjam.
(c) Thesellergivesyoutheitemsinapolythenepacket.
2. Give two reasons of delay in delivery of justice with respect to consumer
grievances?
WHAT YOU HAVE LEARNT
Consumerawarenessincludesknowledgeofthe-productspurchasedalongwith
theireffectsonhealthandenvironmentandconsumersrightsandresponsibilities.
Needforconsumerawarenessarisesduetoseveralreasonssuchas-badquality
ofgoodsandservicessold,sellingwithoutprovidingbill,misleadingadvertisement,
lackofcompleteinformationabouttheproductandproducer/seller,environmental
pollutionduetomindlessandwastefulconsumptionetc.
ConsumerredressalsystemcomprisesoftheLawstoprotecttheinterestofthe
consumersandtheInstitutionstoenforcethelawstoupholdconsumers’rights.
MODULE - 8
Contemporary Economic
Issues
127
ConsumerAwareness
ECONOMICS
Notes
ConsumerProtectionAct1986(CPA)isthemostimportantlegislationtoprotect
interestoftheconsumers.
CentralConsumerProtectionCouncil(CCPC)attheNationalLevelandState
ConsumerProtectionCouncil(SCPC)attheStateLevelaregovernmentinstitutions
whichdealwithconsumerissues.NGOsalsoprovidehelp.
ForredressalofgrievancestherearethreelayersofConsumerCourtsinIndiawith
the District Consumer Forum (DCF) at the bottom, State Consumer Disputes
Redressal Commission (SCDRC) at the mid level and an apex body known as
NationalConsumerDisputesRedressalCommission(NCDRC)atthetop.
A complaint can be filed by the affected consumer concerned or through a
representativeorthroughaletterinaprescribedformgivingthenatureofcomplaint
andthebillwithin2yearsofpurchase.Anominalfeemustalsobepaidinthecourt.
ConsumersRightsinIndiainclude-RighttoInformation,RighttoSafety,Rightto
Choose,RighttobeHeard,,RighttoRedressalandRighttoConsumerEducation.
Consumers’Responsibilitiesinclude-nottobemisledbyadvertisement,seek
completeinformationforempowerment,checkingtheexpirydate,qualityassurance
seal,demandingbill,avoidingwastefulandmindlessconsumption,protectingthe
environmentetc.
TERMINAL EXERCISE
1. Whythereisaneedforconsumerawareness?
2. Whatyoumustdoasanaggrievedconsumertofileacomplaint?
3. DescribetheconsumerredressalsysteminIndia?
4. GivetheprovisionsofConsumerProtectionAct?
5. DiscussinbrieftherightsofconsumersinIndia?
6. Whatyoumustdoasaresponsibleconsumer?
7. ExplaintwomajorchallengesfacingconsumermovementinIndia?
ANSWERS TO INTEXT QUESTIONS
Intext Questions 24.1
1. A person is not a consumer if he/she purchases goods and services for resale
purpose.
ECONOMICS
ConsumerAwareness
Notes
MODULE - 8
Contemporary Economic
Issues
128
2. Becausethebillisrequiredtobeproducedbeforetheconsumercourtifconsumer
findstheproducttobefaultyforwhichhe/shewantstofileacomplaint.Billalso
ensuresthattaxontheproducthasbeenpaidtothegovernment.
3. ValueAddedTax.
Intext Questions 24.2
1. CPA-ConsumerProtectionAct
ECA-EssentialCommoditiesAct
SWMA-StandardofWeightsandMeasuresAct
2. ByopeninganofficeinIndia.
Intext Questions 24.3
1. CentralConsumerProtectionCouncil(CCPC)attheNationalLevelandState
ConsumerProtectionCouncil(SCPC)attheStateLevel.
2. NationalConsumerDisputesRedressalCommission(NCDRC)attheNational
Level,StateConsumerDisputesRedressalCommission(SCDRC)attheState
LevelDistrictConsumerForum(DCF)attheDistrictLevel.
3. Within2yearsfromthedateofpurchaseofthecommodity.
Intext Questions 24.4
1. RighttoSafety,
2. RighttoChoose
3. RighttoInformation
4. RighttobeHeard
5. RighttoConsumerEducation.
Intext Questions 24.5
1. (a)lookforqualityassurancesealsuchasISImark.
(b)Checktheexpirydatebeforepurchase.
(c) say no to plastic bag and demand a cotton or jute bag.
2. Repeatedadjournmentsanddelayinappointmentofjudgesbythegovernment.

Consumer awareness

  • 1.
    ECONOMICS ConsumerAwareness Notes MODULE - 8 ContemporaryEconomic Issues 114 24 CONSUMER AWARENESS Tosatisfyvariouswantspeoplepurchasegoodsandservicesbypayingprice.Butwhat todoifthegoodsandservicesboughtarefoundouttobebadinqualityorunreasonably pricedormeasuredlessinquantityetc.Insuchsituationstheconsumers,insteadof gettingsatisfaction,feelcheatedbythesellerswhohavesoldthegoodsandservices. Theyalsofeelthattheyshouldbeproperlycompensatedfortheloss.Sothereshould beasystemtoreddresssuchissues.Ontheotherhandconsumersshouldalsorealize thattheydohaveresponsibilitiesnotjustrights. OBJECTIVES Aftercompletingthislesson,youwillbeableto: knowthemeaningofaconsumer,goodsandservicesandconsumerawareness; understand the need for consumer awareness; explain the consumer redressal system in India; realise the rights and responsibilities of consumers; understand the procedures for filing the complaints in the consumer courts; know the challenges of consumers’ movement in India. 24.1 SOME DEFINITIONS First let us know the meaning of - a consumer, goods and services and consumer awareness. Who is a consumer? Tobeginwith,letusknowthedefinitionofaconsumer.Aconsumeristhebuyerofgoods andservices.Theuserofgoodsandserviceswiththepermissionofthebuyerisalso treatedasaconsumer.Butapersonisnotaconsumerifhe/shepurchasesgoodsand servicesforresalepurpose.
  • 2.
    MODULE - 8 ContemporaryEconomic Issues 115 ConsumerAwareness ECONOMICS Notes What are goods and services? Goodsarethoseproductswhicharemanufacturedorproducedandsoldtoconsumers throughwholesalersandretailers.Servicemeansserviceofanydescriptionwhichis made available to the potential user with respect to the provision of facilities in connectionwithbanking,finance,insurance,transport,supplyofelectricalorother energy,housing,construction,watersupply,health,entertainment,amusementetc.It doesnotincludeanyservicerenderedfreeofchargeorunderacontractofpersonal service. ConsumerAwareness Consumerawarenessreferstothecombinationof thefollowing: (i) Theknowledgeoftheproductpurchasedbytheconsumersintermsofitsquality. Forexampletheconsumershouldknowwhethertheproductisgoodforhealth ornot,whethertheproductisfreeofcreatinganyenvironmentalhazardornotetc. (ii) Theeducationaboutthevarioustypesofhazardsandproblemsassociatedwith marketing of a product - For example, one way of marketing a product is advertisement through news papers, television etc. Consumers should have propereducationaboutthebadeffectsofadvertisement.Theymustalsoverifythe contentsoftheadvertisement. (iii) Theknowledgeabout‘ConsumerRights’- Thismeansthat,first,theconsumer mustknowthathe/shehastherighttogettherightkindofproduct.Secondly,if theproductisfoundouttobefaultyinsomemanner,theconsumershouldhave knowledgeofclaimingcompensationasperthelawoftheland. (iv) Theknowledgeaboutconsumer’sownresponsibilities-Thisimpliesthatconsumers shouldnotindulgeinwastefulandunnecessaryconsumption. 24.2 NEED FOR CONSUMER AWARENESS Themarkettodayisfloodedwithverylargenumberaswellasvarietiesofgoodsand services. The number of producers and final sellers of the commodities have also increasedmanyfolds.Soithasbecomeverydifficulttoknowastowhoisagenuine producerorseller?Itispracticallynotpossibleforconsumerstopersonallycomein contact with a producer or seller. Moreover in the age of advanced information technology the physical distance between consumer and producer/seller has also increased,sinceconsumerscangettheircommoditiesatdoorstepbybookingorders over telephone or through internet etc. Similarly from among large varieties of commodities,ithasbecomeverydifficulttoknowastowhichoneisgenuine?People thinkthataproductwhichhasappearedinsomeadvertisementmustbegoodorthe
  • 3.
    ECONOMICS ConsumerAwareness Notes MODULE - 8 ContemporaryEconomic Issues 116 producerwhosenameisknownthroughadvertisementmustbesellingtherightproduct. Butthismaynotbetruealways.Muchinformationisdeliberatelyhiddenincertain advertisementstomisleadtheconsumers. Incaseofpackedfoodproductsandmedicines,thereisanexpirydatewhichimplies thattheparticularproductmustbeconsumedbeforethatdateandnotatallafterthat date.Thisinformationisveryimportantbecauseitinvolvesthehealthoftheconsumer. Some times it so happens that either such information is not provided or the seller deliberatelydidnotgivetheinformationsincetheconsumerdidnotaskforitornotice theinscriptionwrittenontheproduct. Italsohappensmanytimesthataconsumerbuysgoodsandserviceswithouttakingthe billorthesellerdoesnotprovidethebill.Thisisdonetoavoidpayingtaxontheproduct tothegovernment.Suchataxisvalueaddedtax(VAT)i.e.atypeoftaxthatisplace onaproductwhenevervalueisaddedatastageofproductionandatfinalsale.Ifthis taxisincludedthenpriceoftheproductwillbehigherbecauseofthetaxandaccordingly itwillbeacknowledgedbyprovidingthebill.Butinordertoattracttheconsumerby sellingtheproductatalowerprice,thesellerdeductsthetaxandsodoesnotprovide thebill.Justbecausethepriceislesstheconsumeralsodoesnotbothertoaskforthe bill.Suchpracticecreatestwoseriousproblems.One,thegovernmentisdeprivedof itstaxrevenueandtwo,theconsumermaysufferiftheproductcomesouttobefaulty andhe/shecannotevenreturntheproductorfileacomplaintsincethereisnobilltogive proofofpurchase. Another major issue is that the consumers are not united. Producers have become stronger and organised because there are Producers’and Traders’Associations to protecttheirinterest.Butthebuyersarestillweakandunorganised.Asaresultthe buyersaredupedanddeceivedquiteoften. Because of the above arguments it is very important for consumers to protect themselvesfromtheunfairtradepracticesofthetradersandserviceproviders.They needtobeawareoftheirrightsasconsumersandusethempromptly. Itshouldbenotedthatconsumerawarenessisnotjustonlyaboutconsumers’rights.It isawellknownfactthatmanyconsumersaroundtheworldhavebeenindulgingin mindlessandwastefulconsumptionbecauseoftheirmoneypower.Thishasdividedthe society into rich consumers and the poor. Similarly many consumers are also not botheredaboutthesafedisposalofwastesafterconsumptionisoverwhichcauses environmentalpollution.Byagreeingtopayalowerpricefortheproductwithoutasking for the bill, many consumers indirectly help the sellers to avoid paying tax to the government. Hence there is also need for consumer awareness to educate the consumersabouttheirresponsibilities. Consumersalsoneedtoactmoreresponsiblyandjoinhandswiththegovernment.
  • 4.
    MODULE - 8 ContemporaryEconomic Issues 117 ConsumerAwareness ECONOMICS Notes INTEXT QUESTIONS 24.1 1. Whoisnotaconsumer? 2. Whymusttheconsumerstakethebillonpurchaseofaproduct? 3. WhatisVAT? 24.3 CONSUMER REDRESSAL SYSTEM IN INDIA Thereislegalandadministrativemachineryworkinginthefieldofconsumereducation inourcountry.Itisimportantforyoutounderstandit. Consumerredressalsystemisasystemunderwhichtheconsumerscanfileacomplaint in a consumer court and demand justice when they are cheated by the sellers or manufacturersofthecommodityorservicetheybuy.ItcomprisesoftheLawsto protect the interest of the consumers and the Institutions to enforce the laws toupholdconsumers’rights.Thankstothegovernment,wehaveconsumerlaws madethroughlegislationsinourcountrywithaspecialfocusonconsumereducation. The purpose is to help the people understand their rights and responsibilities as consumersandtoredresstheirgrievance.TherearealsoexistenceofInstitutionsinthe formofgovernmentdepartmentsandconsumercourtstodealwiththegrievancesofthe affectedconsumers.Letusdiscussthembelow. 24.3.1 Government Legislations Wehavehadseveralgovernmentlegislationsinourcountryevenbeforeindependence toprotecttherightsoftheconsumers.ButConsumerProtectionAct1986(CPA)isthe mostimportantoneandgivesyouasaconsumerallthesupportandguidanceagainst violationofyourrights.CPAisspecificallydesignedtoprotectconsumerinterest. There are a couple of other legislations aimed at providing consumer protection, enactedafterindependence,likePreventionoffoodadulterationAct(PFA)1954,the EssentialCommoditiesAct,1955(ECA)andtheStandardofWeightsandMeasures Act(SWMA)of1976. TheCPAwasenactedwiththeobjectiveofproviding‘cheap’,‘simple’and‘quick’ justicetothemillionsofconsumersinthecountry.Itensuresjusticewhichislessformal, involveslesspaperwork,cutdelaysandislessexpensive.CPAappliestoallgoodsand services,unlessspecificallyexempted.Itcoverstheprivate,publicandcooperative sectors.Italsoempowersaconsumertohaulupmunicipalauthoritiesinconsumer courtsiftheyfailtoprovidealltheservicesrangingfromstreetlightinganddrinkingwater todrainageandhealth.
  • 5.
    ECONOMICS ConsumerAwareness Notes MODULE - 8 ContemporaryEconomic Issues 118 AmongothermeasuresincludedinCPAsomerecentonesare: Consumersareallowedtodecidewheretheywanttoseekredressal. Acompanycannotinsistonbeingliabletobetriedonlyinacourtofitschoice. Consumersareallowedtosueserviceprovidersofacompanyforpassingontheir personalinformationtosalespersonse.g.banks,insurancecompanyetc. Realestatedevelopersareclassifiedastradersandliabletobetriedinaconsumer court. Oversees agencies operating through e-commerce sites on the internet or telemarketingarenotallowedtoselltheirproductsunlesstheymaintainanofficein India.Theyhavetoorganisetheinspectionofgoodspriortopurchase,orrefund goodswithin30days. Officialsandstakeholderslikestategovernmentdepartmentsofpostandtelecom, passportoffices,municipalservices,CentralGovernmentHealthScheme(CGHS) andrailwaysaredemandingexemptionfromtheActfearing,theywillhavetoface abarrageoflitigation. INTEXT QUESTIONS 24.2 1. GivethefullformofCPA,ECA andSWMA? 2. HowcanaforeignagencysellitsproductinIndia? 24.3.2 Institutions to Deal with Consumers’ Grievances ThecitizensofIndiahaveanInstitutionalmachinery,todealwithconsumers’grievances, workingatalllevels:national,stateanddistrict.Therearetwotypesofinstitutions-(i) GovernmentCouncilsand(ii)ConsumerCourts.Besidesthistherearealsoseveral Non-GovernmentalOrganizations(NGOs)registeredunderthegovernmentlawwhich providevariouskindsofsupporttotheaggrievedconsumers. (i)GovernmentCouncils Readthefollowingflowcharttoknowthegovernmentcouncilsworkingatnationaland statelevels. ConsumerProtectionMachineryatthegovernmentslevel CentralConsumerProtection StateConsumerProtection Council Council
  • 6.
    MODULE - 8 ContemporaryEconomic Issues 119 ConsumerAwareness ECONOMICS Notes AsshowninthechartthereisaCentralConsumerProtectionCouncil(CCPC)atthe NationalLevelwhichisheadedbyaCentralMinisterin-chargeoftheConsumerAffairs intheCentralGovernmentatNewDelhi.AttheStateLevelthereisaStateConsumer ProtectionCouncil(SCPC)ineachstateofIndiawhichisheadedbyaStateMinister- in-chargeoftheConsumerAffairsintheStateGovernment. Consumer Courts Read the following flow chart to know the types of Consumer Courts working at nationalandstateanddistrictlevels. ConsumerCourtsinIndia NationalConsumer StateConsumer DistrictConsumer DisputesRedressal DisputesRedresal Forum(DCF) Commission Commission (NCDRC) (SCDRC) Asgiveninthechart,therearethreelayersofConsumerCourtsinIndia.Atthebottom istheDistrictConsumerForum(DCF)atthedistrictlevelinthestate.Thereare604 DistrictForumsinthecountrynow. AtthemidlevelthereisStateConsumerDisputesRedressalCommission(SCDRC). Thereare35StateCommissionsinthecountry. Finally at the top there is an apex body known as National Consumer Disputes RedressalCommission(NCDRC)workinghand-in-handtoprovidecheap,speedy andsimpleredressaltoconsumerdisputesinthecountry. AConsumerCourtisquasi-judicialinnatureandisdirectlyaccountabletothepeople. Thecentralandthestategovernmentsareresponsibleformakingpolicieswithrespect totheworkingofthesecourts. 24.3.3 Redressal Mechanism Nowthequestionarises-Howaconsumerwhofeelscheatedcangetjusticeorrelief intheformofcompensations?Forthisheorshecanapproachanyconsumercourtby filingawrittencomplaintonhis/herownorthroughalawyer.Theparticularcourtthat he/shemustapproachdependsonthevalueofthecommodity.Incaseofanyproduct orinrespectofaservicevaluinguptoRs.20lakhstheaffectedconsumercanfilea writtencomplaintbeforetheDistrictConsumerForums.IfthevalueisuptoRs.1crore, thenhe/shehastoapproachtheStateCommission.Finally,forvalueaboveRs.1crore, theconsumershouldapproachtheNationalCommissionforgrantofrelief.According toCPAthereliefshouldbegivenwithin90-150daysandifaconsumerisnotsatisfied bythedecisionoftheDistrictForumhe/shecanchallengethesamebeforetheState
  • 7.
    ECONOMICS ConsumerAwareness Notes MODULE - 8 ContemporaryEconomic Issues 120 Commissions.IfstillnotsatisfiedwiththeorderoftheStateCommission,theconsumer cangototheNationalCommission. 24.3.4 What You Need To Do? How to file a Complaint? Forfilingacomplaint,theaggrievedconsumermustalwayskeepthecashmemo,receipt orbilloftheproducthe/shehaspurchased.Theformattofileacomplaintislocatedon thebookletprovidedbyconsumerprotectionAct.Thenthepersonmustselectthe propercategoryunderwhichhe/sheisfilingthecomplaint.Thesecategoriesare-unfair tradepractice,deficiencyofserviceetc.Thenthenatureofthecomplaintneedstobe explainedinsimplewords.Theconsumershouldbeclearaboutthefaultandwhathe/ shewantsasaremedyi.eareplacementorarefundorcompensationincaseofaservice. Thedocumentslikethereceiptorotherevidencesmustbeattachedalongwiththe complaint.Therehastobethreecopiesoftheentireset;oneforthecomplainant,one fortheotherpartyagainstwhomthecomplainthasbeenmadeandonefortheconsumer court.Somenominalfilingfeeshavetobepaidtothecourtbythecomplainantinthe formofademanddraft. Itshouldbenotedthatacomplaintshouldbefiledwithin2yearsofthedateonwhich thedefectoccurs.Thisisnotdependentonthepurchasedate.Theaffectedconsumer caneitherappearinperson,sendarepresentativeoralawyerorevenaletter.Incase, acomplainanthasdied,hislegalhairscangotothecourt.Ifnotsatisfiedwithdecision ofthelowercourt,thepersonmustappealtoahighercourtwithin30daysofthelower courts’order.Remember,however,thatthecourtcanfineyouuptoRs.10,000/-ifit thinksthattheconsumerhasfiledafrivolouscomplaint. Checkthelatestrulesbyvisiting localconsumerrightsofficeroronlineatthewebsites-ncdrc.nic.inandcore.nic.in. Nowadayscommunicationthroughinternethasbecomeawayoflife.Soapersoncan alsomailthecomplaint.Thee-mailID/Websiteisprintedonthecoveroftheproduct. 24.3.5 Role of NGOs Incasetheproducer/company/sellergivestheaggrievedpartyacoldshoulderthenthe roleofnon-governmentalorganisationsi.eNGOsbecomesveryimportant.Onecan lodge complaints with some NGO’s like Consumer Grievance (www.consumer grievance.com),ConsumerGuidanceSocietyofIndia(www.cgs_india.org),Common Cause(www.commoncauseindia.org)andConsumerForum(www.consumer.org.in). NGOsnotonlyhelpinfilingacasebutalsotheyprovidelogistic,manpowerandother supports.NGOsalsoconductvariousprogrammestoeducateconsumersabouttheir rightsandresponsibilities. OnecanalsoapproachconsumerhelporganisationcalledJagoGrahakJago.Almost everynewspaperprovidescompleteinformationaboutitthroughadvertisement.The onlinegrievanceformcanbehadbyvisitingthesite.
  • 8.
    MODULE - 8 ContemporaryEconomic Issues 121 ConsumerAwareness ECONOMICS Notes Someotherwebsitesforbanking,insurance,taxandtelecomrelatedproblemsare: www.banking_ombudsman.rbi.org.in www.irdaindia.org www.incometaxindia.gov.in www.trai.gov.in 24.3.6 The Grounds for Filing a Complaint ThedeficiencyinaserviceisoneofthegroundsforfilingacomplaintundertheAct.The termsdeficiencyhasbeendefinedasanyfault,imperfection,shortcomingorinadequacy inthequality,natureandmannerofperformancewhichisrequiredtobemaintainedby orhasbeenundertakentobeperformedbyapersoninpursuanceofacontractorother wiseinrelationtoanyservice.Compensationhastobepaidbythewrongdoerfortheir faultyordefectivegoodsandservices. INTEXT QUESTIONS 24.3 1. Namethegovernmentcouncilswhichdealwithconsumergrievancesatnationaland statelevels? 2. Nametheconsumercourtsatnationalandstateanddistrictlevels? 3. Whenacomplaintcanbefiledintheconsumercourt? 24.4 CONSUMERS’ RIGHTS Thepurchaseofgoodsandservicesentitlesyoutocertainrightsasaconsumer.They areasfollows. 24.4.1 Right to Information Thisrightstatesthatsellersandproducersshouldalwaysprovideconsumerswith enough and appropriate information regarding the price, weight, company brand, manufacturing&expirydates,qualityidentificationmarks,ingredients,contactlinksof thecompanyandsoon,tomakeintelligentandinformedproductchoices.Hereisan examplefromtheservicessector. WhenacustomerwastryingtofindthelowestfaretotravelfromDelhitoBangalore, theresultsofthesearchindicatedairfaresfromRs.1450onwards.Hechoseaflight thatcostedRs.1500/-plustaxes.Hehasnoideawhatthetaxcomponentwas.As
  • 9.
    ECONOMICS ConsumerAwareness Notes MODULE - 8 ContemporaryEconomic Issues 122 heproceededwiththebooking,hegottoknowthatRs.1500isthebasicfareand onthat,taxesandotherfeescostanotherRs.3445andthefinalfarewillbeRs.4995. Nowwhycan’ttheairlinesandportalsbemorehonestandtransparentandmention theactualfareclearlyatthebeginning?Whyshouldtheymisleadconsumersinto payingthreetimesmorethanwhattheyfirstsee?Youhavetobecautiousandget full informations from such service providers who are concealing part of the informationsonthebasisofwhichtheywouldlaterharasstheconsumers. 24.4.2 Right to Choose TheconsumershavetheRighttoChooseregardingwhattobuyandwhatnottobuy. Sometimeswhenyoureceiveaserviceorpurchaseagoodyoucannotdosobecause youareforcedtobuythingsthatyoumaynotwishto.Theshopkeeperputsacondition andyouareleftwithnochoice.Youasaconsumerloseyourrighttochoose.Readthe casebelow: “WhenSenthilappliedforanewgasconnection,littledidherealiseitwouldbethe firststeptowardsatroublesomejourney.HewalkedintotheKumaranGasAgency foraBharatGascylinder,assuminghewouldhavetopayRs.1500/-.Insteadhe walkedoutpoorerbyRs.7000/-afterbeingforcedtobuyproductshedidnotreally needsuchasapressurecooker,gaslighter;evenapacketofdetergent.Thereason; theagencyinsistedthatitwasmandatoryforanewcustomertoacquirethewhole ‘kit’.SenthilcomplainedtotheConsumerOnlineResourceandEmpowerment Centre(CORE)whichsentamailtotheagency.Withinaweekhewasrefunded aboutRs.5000/-.Contrarytogeneralbelief,thiscustomerisaproofthatresolving agrievanceneednotbelongandfinanciallydraining”.(IndiainfolineNewsService, Mumbai,April2,2009) 24.4.3 Right to Safety Thisrightprovidesprotectionagainstthemarketingofgoodsthatareunsafetothe healthandlifee.g.adulterationinfood,medicines,electronicsandsoon. 24.4.4 Right to be Heard This right ensures that consumers’ interest will be given due consideration in the appropriateforums.ThisrightalsoempowerstheIndianconsumerstofearlesslyvoice theircomplaintsagainstthedefectiveproductsandtheerringproducer/company/seller. 24.4.5 The Right to Seek Redressal Incaseofcheating,fraudoranyotherinjusticeasexplainedabovetheconsumercan getcompensationforthedamagecausedbytheunfairandexploitativetradepractices.
  • 10.
    MODULE - 8 ContemporaryEconomic Issues 123 ConsumerAwareness ECONOMICS Notes Theredressalcourtsthroughtheirinterventionhelpconsumersgetjustice. Letuslookintosomecaseswheretheretailersviolateconsumer’srighttoredressal particularlyinrespecttogoodsboughtduringsale. “Abusydoctorbought3pairsoftrousersatadiscountedpriceofRs.2000/-each, duringasalefromawellknownretailbrandfromaparticularoutlet.Howevertohis utter surprise, the fabric just gave way within a few wears, even before it was washed.Onhiscomplaintapersonin-chargeofthecompanyshowroomtookback onepairandsaid,itwouldbesenttothecompany’squalitycellfortesting.Ayear haspassedandhehasneitherheardfromthecompany,norgotbackhistrousers. Should the doctor not askfor his money andalso forcompensation for all the discomfortundergoneinpurchasingthetrousers?Thedoctorhastherighttoseek redressalasaconsumer.” 24.4.6 The Right to Consumer Education Itmeanstohaveaccesstoprogramsandinformationthathelpconsumersmakebetter decisionsbeforeandafterpurchase.Instructionsandguidelinesforconsumersare issuedbythegovernmentdepartmentsandNGOs.Thishelpstheconsumerstotake rightdecisionwithregardtopurchaseofacommodity.tobringTrademarksandLogos authenticationmarkssuchasISI,AGMARK,BISandothereducationalcampaigns doneinpublicinterest. INTEXT QUESTIONS 24.4 Mentiontheappropriateconsumerrighttofileacomplaintwithregardtothefollowing 1. Apersonfallingsickafterconsumingapackagedfooditem. 2. Asellerforcingabuyertopurchaseacertainbrandofgoodsandnotshowingother varietiesofgoods. 3. Samirwantstobuyacomputerandwantstoknowtheexactconfigurationfromthe seller. 4. Rekhawascheatedbyasellerandwantstofileacomplaint. 5. Reshmahasgonetoadistrictconsumerforumagainstthelocalhospitaltoseek compensation for wrong diagnosis for which she had to spend Rs. 2 lakhs unnecessarily. 6. YouhaverequestedtheconcerneddepartmentofDelhiGovernmenttogiveyou bookletonconsumerprotectionact.
  • 11.
    ECONOMICS ConsumerAwareness Notes MODULE - 8 ContemporaryEconomic Issues 124 24.5 CONSUMERS’ RESPONSIBILITIES Consumer education is not always about rights of the consumers, but also about responsibilitiesandshoulderingthemhonestlyandsincerely.Letushighlightsomeofthe issueshere. 24.5.1DealingwithAdvertisements Advertisementshavebecomeapartandparcelofourlivesandevenifwetrywecannot avoidthem.Companiesaretryingtoselltheirproductsbymakingattractiveaudio- visuals,publishingonlythatpartwhichmaybeeyecatchingandhidingothercrucial informationandsoon.Consumersneedtobecautiousofsuchdeceptiveadvertisements. Childrenaretheworstvictims.Theyneedtobeguidedproperly. 24.5.2 Buying Quality Certified Products Therearelotofproductswhicharecertifiedbyrecognisedagenciesassafetoconsume andgoodinquality.ForexampletheIndianStandardInstitute(ISI)conductsquality testingofmanyconsumergoods.IffoundpropertheproductislabelledwithISImark on it. For many food products the quality assurance is certified by seal called AGMARK.ConsumersshouldchooseproductswithISImarkandAGMARK. Averyimportantthingbeforepurchasingfoodproductsormedicinesetcisthatthe consumermustseetheexpirydate. 24.5.3 Demanding Bill of the Purchase Everyconsumermustdemandthebillafterpurchaseofgoodsandservices.Thebillis theproofofpurchaseandcanbeusedtoseekjusticeiftheconsumerfeelscheatedafter buyingthecommodity.Throughthebilltheconsumeralsoensuresthatthegovernment receivestaxontheproductbecauseitismandatoryforthesellertomentionthetax amountonthebill.Suchactoftheconsumermakeshim/heraresponsiblecitizenofthe country. 24.5.4 Being a Green Consumer A consumer must consume those products which do not cause damage to our environment. Plastic bag is one example which has caused serious damage to the environment.Peopleshouldusebiodegradableproductswhichcaneasilymixwithsoil andwateraftertheyaredisposedoff.Similarlypeopleshouldsaveelectricity,gasetc byjudicioususe.Consumersarealsoresponsibleforautomobilepollutionintownand cities.Theyshouldusepublictransportsystemandeco-friendlyvehicles. 24.5.5 Consumers as Managers Consumerscanunitetogethertoprovidethemselvesandthecommunityatlargeofa localityorvillagesomebasicneedssuchasdrinkingwatersupply,health,educationetc.
  • 12.
    MODULE - 8 ContemporaryEconomic Issues 125 ConsumerAwareness ECONOMICS Notes It is the government who acts as the manager for delivery of services. But the governmentdepartmentsareoftenblamedforinefficientanderraticdeliveryofsuch services.Soconsumerscanunitetoprovidesuchservices. Readthefollowingstory: Consumers as Managers (AtruestoryfromGujrat) Gujrathasmorethan13000village‘PaniSamitis’whichareactingasmanagersof servicedeliveryatthevillagelevel.Thevillage‘PaniSamitis’areformedinGram Sabhasthroughconsumers.Theymanagetheirin-villagesystemsforwatersupply serviceuptothehouseholdlevel,withastrongsenseofownership.Theyarealso testingthequalityofwaterandprovidingqualityassuranceuptotheconsumers’ level. Communityengagementformakingpeopleasmanagershasresultedinreducingthe costofdelivery,timelyandefficientdeliveryofwater,efficientrepairsofwatersupply system,efficientutilizationofwaterresource,innovativetariffmechanismsmeasuresfor sustainabilityofwaterresourceslikedeveloping‘checkdams’,pondsforrechargingof groundwaterleadingtoconservationofwaterresourcesinthearea. InavastcountrylikeIndiaconsumershavearesponsibilitytostandbythegovernment. Youcanalsoplayaconstructiverolebyjoininghandswithyourlocalwater,electricity, sanitationboards,throughthelocalfederationsofyourlocalityorGramSabhasofyour village. 24.6 MAJOR CONCERNS OF CONSUMER MOVEMENT IN INDIA Forsuccessfulconsumermovementpeopleneedtobeeducated.Indiaisnotonlyhighly populatedbutalsoculturallydiverseandhasvastnumberofilliterates.Sobringing consumerawarenessisabigtask.Itisslowlypickingupandlotstobedoneinthis regard.Twomajorconcernsare(i)spreadingconsumerawarenessinruralareaofIndia and(ii)timelydeliveryofjustice.Letusbrieflydiscussthembelow. 24.6.1 Consumer Awareness in Rural India Onaccountoftheglobalizationandliberalisation,increaseinmiddleincomeandhigh incomepopulationinthevillagesourruralmarketsarealsoexpanding.Socompanies arereachingwiththeirproductstoourruralmarketsaswell.Buttheruralconsumers inIndiaaregenerallyignorantandilliterate.Sotheyareexploitedbythemanufacturers, traders and service providers. Rural consumers face problems like fake brands, spuriousproducts,lackwarrantiesandguarantees,imitation,unreasonablepricing,lack ofvarietiesandsoon.Thereisaneedforspreadingconsumerawarenessintherural areasmoreseriously.
  • 13.
    ECONOMICS ConsumerAwareness Notes MODULE - 8 ContemporaryEconomic Issues 126 24.6.2 Timely Delivery of Justice Youknowthatjusticedelayedisjusticedenied.Unlikethecivilcourts,theconsumer courtsarequasi-judicialbodiesthatneedtofollowasimple,summaryprocedurefor quickdisposalofcomplaints.Howeverrepeatedadjournments,delaysonthepartof thestategovernmenttofillupthepostsofjudgesandunnecessarytechnicalitiesslow downtheprocessofjusticefortheconsumers.Delaysoftentakeawaytheessenceof thelaw.Readthefollowingcasethatillustratesthesepoints. Followinglossofyieldduringthesowingseasonof1993duetodefectivehybrid cottonseedssoldtothem,130farmersfromMaharashtrafiledaclassactionsuit seekingcompensation.Eventually,theywonthecase,butitlook14yearsduring whichtimetenfarmershaddied. The Government amended CPA in 2003 to eliminate such delays. Accordingly, consumercourtsarenottogiveadjournmentsatall.Inexceptionalcircumstanceswhere itisgiven,thecourthastorecordthereasonsforitinwritingandjustifyit. INTEXT QUESTIONS 24.5 1. Whatshouldyoudoasaresponsibleconsumerinthefollowingcases (a) Topurchaseanelectricironfromamongseveralbrandsavailable (b) Youarepurchasingbreadandfruitjam. (c) Thesellergivesyoutheitemsinapolythenepacket. 2. Give two reasons of delay in delivery of justice with respect to consumer grievances? WHAT YOU HAVE LEARNT Consumerawarenessincludesknowledgeofthe-productspurchasedalongwith theireffectsonhealthandenvironmentandconsumersrightsandresponsibilities. Needforconsumerawarenessarisesduetoseveralreasonssuchas-badquality ofgoodsandservicessold,sellingwithoutprovidingbill,misleadingadvertisement, lackofcompleteinformationabouttheproductandproducer/seller,environmental pollutionduetomindlessandwastefulconsumptionetc. ConsumerredressalsystemcomprisesoftheLawstoprotecttheinterestofthe consumersandtheInstitutionstoenforcethelawstoupholdconsumers’rights.
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    MODULE - 8 ContemporaryEconomic Issues 127 ConsumerAwareness ECONOMICS Notes ConsumerProtectionAct1986(CPA)isthemostimportantlegislationtoprotect interestoftheconsumers. CentralConsumerProtectionCouncil(CCPC)attheNationalLevelandState ConsumerProtectionCouncil(SCPC)attheStateLevelaregovernmentinstitutions whichdealwithconsumerissues.NGOsalsoprovidehelp. ForredressalofgrievancestherearethreelayersofConsumerCourtsinIndiawith the District Consumer Forum (DCF) at the bottom, State Consumer Disputes Redressal Commission (SCDRC) at the mid level and an apex body known as NationalConsumerDisputesRedressalCommission(NCDRC)atthetop. A complaint can be filed by the affected consumer concerned or through a representativeorthroughaletterinaprescribedformgivingthenatureofcomplaint andthebillwithin2yearsofpurchase.Anominalfeemustalsobepaidinthecourt. ConsumersRightsinIndiainclude-RighttoInformation,RighttoSafety,Rightto Choose,RighttobeHeard,,RighttoRedressalandRighttoConsumerEducation. Consumers’Responsibilitiesinclude-nottobemisledbyadvertisement,seek completeinformationforempowerment,checkingtheexpirydate,qualityassurance seal,demandingbill,avoidingwastefulandmindlessconsumption,protectingthe environmentetc. TERMINAL EXERCISE 1. Whythereisaneedforconsumerawareness? 2. Whatyoumustdoasanaggrievedconsumertofileacomplaint? 3. DescribetheconsumerredressalsysteminIndia? 4. GivetheprovisionsofConsumerProtectionAct? 5. DiscussinbrieftherightsofconsumersinIndia? 6. Whatyoumustdoasaresponsibleconsumer? 7. ExplaintwomajorchallengesfacingconsumermovementinIndia? ANSWERS TO INTEXT QUESTIONS Intext Questions 24.1 1. A person is not a consumer if he/she purchases goods and services for resale purpose.
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    ECONOMICS ConsumerAwareness Notes MODULE - 8 ContemporaryEconomic Issues 128 2. Becausethebillisrequiredtobeproducedbeforetheconsumercourtifconsumer findstheproducttobefaultyforwhichhe/shewantstofileacomplaint.Billalso ensuresthattaxontheproducthasbeenpaidtothegovernment. 3. ValueAddedTax. Intext Questions 24.2 1. CPA-ConsumerProtectionAct ECA-EssentialCommoditiesAct SWMA-StandardofWeightsandMeasuresAct 2. ByopeninganofficeinIndia. Intext Questions 24.3 1. CentralConsumerProtectionCouncil(CCPC)attheNationalLevelandState ConsumerProtectionCouncil(SCPC)attheStateLevel. 2. NationalConsumerDisputesRedressalCommission(NCDRC)attheNational Level,StateConsumerDisputesRedressalCommission(SCDRC)attheState LevelDistrictConsumerForum(DCF)attheDistrictLevel. 3. Within2yearsfromthedateofpurchaseofthecommodity. Intext Questions 24.4 1. RighttoSafety, 2. RighttoChoose 3. RighttoInformation 4. RighttobeHeard 5. RighttoConsumerEducation. Intext Questions 24.5 1. (a)lookforqualityassurancesealsuchasISImark. (b)Checktheexpirydatebeforepurchase. (c) say no to plastic bag and demand a cotton or jute bag. 2. Repeatedadjournmentsanddelayinappointmentofjudgesbythegovernment.