Consumer protection Law

1. Presentation by
ROBIN JAISWAL
ROHIT KUMAR
VISHAL BASUMATARI
PROMOTION OF
CONSUMER RIGHTS
THROUGH BUSINESS
SELF-REGULATION IN
INDIA:
AN EVALUATION

2.  INTRODUCTION
 BUSINESS SELF-REGULATION PRIOR TO 1986
 BUSINESS SELF-REGULATION POST 1986
- Self-Regulation by Public Sector
- Self-Regulation by Private Sector
 CODES IN DIFFERENT FIELDS
- Council for Fair Business Practices (CFBP)
- Federation of Indian Chambers of Commerce and Industry (FICCI)
- Advertising Standards Council of India
- Associated Chambers of Commerce and Industry in India (ASSOCHAM)
- Association of Indian Engineering Industry (AIEI)
- Confederation of Indian Foods Trade and Industry (CIFTI)
- New Delhi Traders’ Association (NDTA)
TABLE OF CONTENTS

3.  Business Self-Regulation has been advanced as a technique
which can make significant contribution to Consumer Protection.
In recent period of time, business self-regulation has blossomed
as individual firms and trade associations have announced
regulatory moves to assist consumers and to protect their
interests.
 Businesses as well as corporate houses have also launched
“codes of ethics” and “social practise”.
INTRODUCTION

4.  Why Business Self-Regulation is important for consumers’ rights
and interests?
 How Self-Regulation has evolved from the post-independence
period to the post 1986 period?
 How Self-Regulation has emerged in the business houses and
how it led to formation of national bodies?
RESEARCH QUESTIONS

5.  Consumer Protection has an ancient history in India.
 Concept of ‘social responsibility’ and ‘self-regulation’ with
reference to business was discussed by Mahatma Gandhi in his
‘theory of Trusteeship’.
 Acharya Vinoba Bhave and Jayaprakash Narayan were two of
the Greatest exponents of Gandhian Philosophy.
BSR Prior to 1986

6.  A‘code of ethics’ was finalised in July 1966 and thus, “Fair Trade
Practices Association” (FTPA) came into being. It was formally
launched on 2nd October, 1966 and it heralded a ‘Movement for
Self-Regulation in Business’ in India.
 The Sachar Committee was appointed by the Government of
India in 1977 to suggest modifications in the Companies and
MRTP Acts.
 Initiatives took by the prominent companies of that time like the
TATAS.
Continued...

7.  There has been an increased amount of business self-
regulation in the last few years and more particularly after the
enactment of the Consumer Protection Act, 1986.
 It may be mentioned that whereas the public sector has
regulated itself by modifying institutional arrangements to
redress the consumers’ grievances, like for example celebrating
“consumer weeks” etc, self-regulation by the private sector is
being reflected in the announcement and publicity of specific
‘codes of ethics’.
BSR Post 1986

8.  One of the main reasons for the poor performances of the public
sector or state undertakings in India has been the inability of the
top management to understand or develop business
perspectives.
 But some attempts have recently been made by these public
sector organisations to improve their image by setting up
“consumer grievance cells”.
 Thus, consumer grievance cells have been set up in most public
sector undertakings at least in most major towns in the country,
which include: banks, electricity board, petroleum and gas
corporations, railways, road transport and Life Insurance
Corporation of India.
Public Sector

9.  In the mid 1980s, when consumers started resisting the
indifferent and callous attitude of the business community and
the government, too, started seeing customers as an important
entity whose rights had to be safeguarded.
 In the “workshop on the impact of Consumer Legislation on
business” in 1987, ways and means to prevent government
legislations and must work towards self-regulation and evolve a
machinery to ensure satisfaction to the consumer was decided.
Private Sector

10.  Some cases where the corporate sector has preferred to
regulate themselves instead of facing long drawn legal battles-
 National consumer protection samiti v. Gujarat co operative milk
marketing federation ltd [1991 (2) CPR 549]
 India Photographic Co. v. HD Shourie [1991 (II) CPJ 142]
Continued...

11.  Council for Fair Business Practices (CFBP)
 Certain industrialists of Bombay got together in mid-1960s and started the Fair Trade Practises
Association (FTPA) to “safeguard consumer interests in an institutional manner and thereby help
elevate the public image of business.” Now known as the Council for Fair Business Practices
(CFBP), it claims to have been a “pioneer in the area of consumer protection”. Every member of
the Council is committed to the following obligations-
 To charge only fair/reasonable prices and to take every possible step that the prices to be charged to the customer
are brought to his notice.
 To take necessary steps to ensure that agents/dealers appointed by him do not charge prices higher than fixed.
 Not to produce or trade in spurious goods of standards lower than specified.
 Not to adulterate goods supplied.
 Not to publish misleading advertisements.
 To invoice goods exported or imported at their correct prices.
 To maintain accuracy in weights and measures of goods offered for sale.
Codes in Different Fields

12.  It is the apex body of Indian trade and industry- also claims to have been involved
in promotion of consumer welfare. In 1984, it set up a Consumer-Business Forum
with a view to devise ways and means to redress consumer grievances, which
came up with its own set of business ethics in January, 1985 which are-
 To ensure quality and safety of articles manufactured, processed or sold and to adhere to specified
standards.
 To maintain accuracy in weights and measures of goods for sale.
 To support free distribution of goods and avert creation of artificial scarcity.
 Not to deal knowingly in smuggled or spurious products.
 To ensure that warranty of a product or service is based on adequate data or tests.
 To conform to specified or accepted norms for ensuring safety of products.
 To provide effective after-sales services for consumer durables.
 To encourage setting up of consumer affairs cells in industrial houses to attend to consumer complaints and
to get proper feedback.
Federation of Indian Chambers of Commerce
and Industry (FICCI)

13.  This being a body of advertisers, advertising agencies, the
press and others involved in any form of advertising was
incorporated in October 1985. Its code of ethics are-
 To ensure truthfulness and honesty of representations and
claims made by advertisements and to safeguard against
misleading ones.
 To ensure that the advertisements are not offensive to generally
accepted standards of public decency.
 To safeguard against the indiscriminate use of advertising for
the promotion of products which are regarded as hazardous to
society or to individuals.
Advertising Standards Council of India

14. •Associated Chambers of Commerce and Industry of India (ASSOCHAM)
It is an apex body of the industrial representatives, associations and traders- set
up an ‘Expert Committee on Consumer Affairs’ toward the end of 1980s to
“promote consumer awareness amongst business houses and to educate
consumers about their rights and responsibilities. ASSOCHAM suggests that
business should establish better rapport with the consumer and that every
manufacturer establish a ‘Consumer Affair Cell’ (CAC) in his organisation.
•Confederation of Indian Foods Trade and Industry (CIFTI)
It is an apex organisation of the food and trade industry in the country. Its ‘code
of ethics’ applies to all food items produced and distributed and establishes
standards of ethical conduct by all those concerned with the production,
distribution, import and export of these items, under standards of laws like
Prevention of Food Adulteration Act, 1954. Attempts should be made to produce
foods of superior quality conforming to the standards specified by the Bureau of
Indian Standards (BIS) and AGMARK.

15.  In India, as an result of the enactment and the implementation
of the Consumer Protection Act 1986, there has been an
increased amount of self-regulation by the public sector as well
as the private sector corporate houses. The mounting pressure
by the consumer organisations and the growing no. of cases
filed by the consumers have propelled the corporate sector in
India to become more socially accountable. The announcement
of the ‘codes of ethics’ by the Private companies and the
institutionalisation of the Complaints redressal mechanism by
the Public sector, to an extent, had been effective in solving
customer related problems and to bring about the social
change.
Conclusion

16. THANK YOU