The document summarizes the key findings of a research study conducted in 19 states and 3 union territories of India to understand the state of Indian consumers. Some of the main findings include: - Consumers' awareness of their rights is still low, especially regarding laws and regulatory agencies. - Access to basic needs like healthcare, education, water and electricity remains a challenge for many. - Redressal mechanisms for consumer grievances are difficult to access and ineffective. - Awareness around environmental protection and sustainable consumption is also low. The report recommends initiatives like a dedicated consumer affairs department, simplified redressal processes, national awareness campaigns, and regulatory reforms to better protect consumers' rights in India.

1. National Conclave
Oct. 11-12, 2012
IHC, New Delhi
„Indian Consumers in the New Age: A Forward Looking Agenda
to Address the Concerns of the Common People’ (ConsumersUp)
Key Findings of the Research on the
state of Indian Consumers

2. Project Back Ground
• On completion of twenty five years of Consumer Protection Act 1986, there is
need for compressive and forward looking Consumer Protection Policy to address
emerging consumer issues.
• For this CUTS is implementing a one year (Nov. 2011-Oct. 2012) Project named
“ConsumerUP” in partnership with DoCA, GoI in four states of India.
• As part of the research component consumer survey has been conducted in 19
states and 3 union territories of India to understand the state of Indian consumers.
CUTS assigned the task to a professional agency; Insight Development Consulting
Group (IDCG) on competitive bidding basis.
• The focus of the survey was to assess the level of Knowledge, Awareness and
Exercise of consumers regarding consumer rights motioned in UN guidelines: -
2
 Right to Basic Needs  Right to Redressal
 Right to Safety  Right to Consumer Education
 Right to be Informed  Right to be Heard
 Right to Choice  Right to Healthy Environment

3. Project Approach
3
Study on the State of the Indian Consumers
4 Regional Consultations
1 National Conclave
8 State level knowledge
Enhancement workshops
Enabling environment for protection and
promotion of consumer interest
contributing towards the national interest”
For more details, visit: http://www.cuts-international.org/CART/ConsumersUp/

4. Research Methodology & Coverage
• Surveyed 11,499 (53%Male & 47% Female) consumers following a
Stratified Multi-Stage Sampling Approach in 88 districts, spread across
19 states and 3 union territories of India
• Population Proportionate Sampling (PPS) methodology was used to
draw a sample representative of the state‟s population.
– Other factors taken into account in stratifying the sample include:
• Geographical spread
• Relative literacy rates of districts
• Rural and urban divide
• Categories of consumers in term of gender, education and financial status
• 385 qualitative samples collected through personal interactions with
consumer organizations, redressal bodies, Govt. departments/agencies.
• Period of Data Collection- March- June 2012
4

5. Survey Sample Distribution
5

6. Right to Basic Needs
(Food, Water, Health, Sanitation, Education, Transport, Communication and energy)
• 31% respondents believe that the water from these sources is not potable,
hence not safe for drinking
• Only 24% respondents are aware about government Sanitation
Program/schemes.
• 77% consumers feel the need of a regulator for private schools.
• Only 4% consumers have access to internet.
• About 74% of the respondents who tried to access govt. housing finance or
bank finance scheme believe that finance is not easily accessible and
affordable
• Only 44% respondents have reported to receive appropriate quantity of
food grains from PDS/FPS on a regular basis.
• According to 59% respondents doctors do not generally prescribe generic or
competitively priced drugs/medicines.
• 26% respondents have travelled more than 5 km to access institutional health
care facility.
6

7. Right to Basic Needs
• Only 44% respondents consider cost of obtaining healthcare services affordable
• 17% believe that government support for home/community toilet is easily
accessible.
• Only 62% consumers consider electricity to be affordable.
• About 56% of those who use LPG or kerosene as their primary source of energy
for cooking have reported incidence of obtaining LPG/kerosene from black
market. About 20% of them always obtain LPG or Kerosene from black market.
• Only 22% respondents are satisfied with Government‟s effort to ensure adequacy,
accessibility and affordability of basic needs.
• 53% respondents strongly believe that right to basic needs should be enacted
as a legal right.
7

8. Right to Safety
• Though about 83% respondents believe that certification and
warnings are an important means to ensure right to safety.
• But 40% of respondents do not refer to any safety or quality
certifications such as ISI, ISO, Agmark, Codex etc. before making a
purchase.
– ISI is the most known certification
– Consumers suggested to make mandatory certification of Acid,
Paints, Mosquito Coils, Beverages and Electronic Items.
8

9. Right to be Informed
9
Awareness Regarding Consumer Protection Related Laws (%)

10. 10
CPA1986 W&M 1976 SoG 1930 Contract Act
1872
Competition
2002
FSSA 2006 PSG 2011 LM 2009
28
19
15
11
13
18
14
9
16
12
8
4
5
8
6
4
Awareness Level of Different Legislations
Aware Urban Aware Rural

11. 11
22
16
12
8
9
13
9
6
17
12
9
5
7
10
8
5
CPA1986 W&M 1976 SoG 1930 Contract Act
1872
Competition
2002
FSSA 2006 PSG 2011 LM 2009
Awareness Level of Different Legislations
Aware Male Aware Female

12. Right to be Informed
12
Awareness Regarding Regulatory Agencies
0
5
10
15
20
25
30
35
40
ERC TRAI FSSAI SEBI
IRDA RBI
PFRDA FMC
26 27
16 16
24
40
25
8

13. 13
39 38
23
28
32
51
30
14
19
22
12 11
20
34
22
4
ERC TRAI FSSAI SEBI IRDA RBI PFRDA FMC
Awareness Level of Regulatory Authorities
Urban Rural

15. Right to Choice
• Only few consumers are of aware about
competition issues and their importance to
protect interests of consumers.
• only 1.6% respondents were able to
correctly name at least one product/service
which has only one or two
producers/providers.
• Apart from availability, cost of
alternatives, transaction fee, documentation
are the main barriers before consumers in
choosing alternative service/products.
• Consumers believe that there is need to
promote more free & fair competition in
Aviation, Education, Oil & Gas, Railway
and Real –Estate.
15
Products/Services which Should Offer
Portability
60
12
15
17
15
0 10 20 30 40 50 60 70
Bank Account
Number
School/College
Admission
Electricity
LPG Connection
Insurance

16. Right to Redressal
• 61% normally voice their complaints to seller, at first point
• When it come to actual situation - 93% respondents have never made a formal
complaint
• Only 0.3% respondents have approached consumer fora for grievance redressal,
• 78% have rated the grievance redressal process as “difficult”.
– 75% cases were not completely redressed while only 18% of such unresolved
cases were taken to a higher authority for redressal.
– 67% cases were not redressed within stipulated time frame
• 0.1% people have approached sector ombudsman for redressal.
• Only 18% consumers are fully satisfied with the existing redressal mechanism
• Only 28% of those who know about external redressal mechanism believe that it is
easily accessible by a common man
• About 89% aggrieved consumers are represented through advocates in SCDRC and
DCDRC.
16

17. Right to Redressal- Major reasons for delay
• According to SCDRC/DCDRF, the three major reasons for delay
in redressal are :
– Adjournment Sought by Advocates/ Parties (27%)
– Limited/Inadequate Administrative/ Support Staff (19%)
– Educational Status of Complainant (11%)
• According to Consumer Organisations, the three major reasons for
delay in redressal are:
– Educational Status of Complainant (16%)
– Inadequate Administrative/ Support Staff (14%)
– Limited Number of Benches (13%)
17

18. Right to Consumer Education
• Only 42% respondents have heard about consumer rights
• 78% of such respondents heard about consumer rights from
television (TV) Almost 50% of respondents are aware of “Jago
Grahak Jago Campaign”.
• 80% of such respondents learnt about the campaign from Television.
• Close to 50% of those who know about “Jago Grahak Jago” campaign have
reported to benefit directly or indirectly from the campaign.
18

19. Right to be Heard /Consumer Representation
• only 23% are aware
about the process of
public consultation or
consumer
representation.
• In rural area only 18%
respondents are aware
• About 28% of those
who are aware about
public consultation or
consumer
representation have
also participated 19
64
25
6
5
0 20 40 60 80
Lack of awareness among
people
Lack of interest among people
to participate
Date/time and Objective of
public consultation are not
properly communicated
Participation do not result in
framing of consumer friendly
regulations
Hurdles in ensuring effective consumer
representation/ participation

20. Right to Healthy Environment
• Only 9% respondents are aware about
certifications and initiatives.
• Awareness about such certifications is
largely among residents of southern
(18%) and northern (12%) region, while
eastern region has lowest level of
awareness (2.5%).
• About 28% respondents those who
know about such products always tend
to buy such products
• About 63% are willing to pay some
extra money to buy such products 20
Awareness regarding environmental
friendly certifications
Yes
9%
No
91%

21. Ranking of target States/UTs in term of
overall consumer awareness
21
Bihar, 22
Andhra Pradesh, 21
Uttarakhand, 20
Odisha, 19
Rajasthan, 18
Tamil Nadu , 17
Chhattisgarh, 16
West Bengal, 15
Madhya Pradesh, 14
Uttar Pradesh, 13
Puducherry, 12
Jharkhand, 11
Tripura, 10
Delhi, 9
Haryana, 8
Goa, 7
Maharashtra , 6
Karnataka, 5
Kerala, 4
Gujarat, 3
Punjab, 2
Chandigarh, 1
0 5 10 15 20 25
Bihar
Andhra Pradesh
Uttarakhand
Odisha
Rajasthan
Tamil Nadu
Chhattisgarh
West Bengal
Madhya Pradesh
Uttar Pradesh
Puducherry
Jharkhand
Tripura
Delhi
Haryana
Goa
Maharashtra
Karnataka
Kerala
Gujarat
Punjab
Chandigarh

22. 22
ISSUES National Haryana Karnataka Tripura Jharkhand
People are using public distribution system (PDS) as preferred source for food grain. 14 5 18 57 17
Doesn‟t know where to register complaint for PDS 19 52 8 67 12
Respondents are purchasing LPG/Kerosene from black market 20 14 23 29 12
Still wood is used as fuel in kitchens of respondent 46 45 19 30 35
Respondents meet their drinking water demand through public water supply 54 51 69 53 70
Only respondents having access to electricity above 20 hours supply on a normal day.
Respondent‟s Awareness level Electricity Regulatory Commission
32
26
25
18
37
31
26
33
14
20
Respondents believe that access to education has increased due to Right to Education (RTE) 80 90 64 61 86
Instead of good, respondents have rated healthcare facility as “fair” 52 60 54 57 65
Accordingly respondents has respondent that generic medicines are not easily available 57 62 60 67 40
Respondents fully satisfied with government‟s effort to ensure adequacy, accessibility and affordability of basic needs. 22 20 22 14 33
According to responses ISI is the most know certification
whereas Agmark and Codex certifications are known to very few.
44 53 72 39 71
Always check weights/quantity of product before purchasing
Always check contents Mark of product before purchase
Unaware of Consumer protection Act
63
29
77
56
86
56
24
39
79
31
69
47
93
RBI is known to the
TRAI is known to
40
27
50
32
47
36
54
13
41
30
Respondent ever approached Consumer forums for grievance redressal
Respondents not choosing any of Redressal Mechanism
Unknown to choosing alternative product/services is the biggest barrier
2.6
93
56
02
92
41
03
89
25
13
92
36
0.3
97
51
Respondents satisfied with the Present Grievance Redressal Mechanism
Respondents aware of internal redressal mechanism of a company
Respondents unaware of external redressal mechanism of a company
Respondents agrees, present Grievance Redressal Mechanism‟s Ability to Compensate Aggrieved Consumer
27
13
14
13
14
25
27
25
39
09
20
18
36
14
06
11
55
07
06
06
Respondents aware of “Jago Grahak Jago”
Awareness level of respondents on Consumer Rights
51
41
81
42
59
62
65
48
81
69
Respondent‟s aware about the public consultation
Respondents Participation in Public Hearing/ Public Consultation
Lack of awareness among people for not participating in such events
23
06
64
23
14
80
34
17
39
06
02
22
11
03
35
People‟s awareness regarding environmental friendly certifications
Respondents Always Purchase Environment Friendly Products
Willingness to pay extra money for such products
09
28
63
13
16
56
39
44
59
11
09
73
2.1
57
71

23. Recommendations
• There is need of a separate department for consumer affairs to
coordinate all consumer related affaires.
• There is need to simplify & speed-up process of consumer fora.
• There should mediation/consumer cells every in District Forum.
• There is need of a National Authority to curb unfair trade practices ,
mainly misleading advertisements.
• There is a need of national campaign for consumer awareness (like
Jago Grahak Jago) in all regional languages.
• There is need to creat more awareness about regulatory agencies and
their regulations for consumer protection. Every regulator should
have dedicated fund for consumer protection.
• There is demand to maker Right to basic need a legal right.
23

24. Recommendations
• There is need of regulators for education, health and real-estate sectors.
• There should be more emphasis on consumer education in school and
college curriculum.
• There is need to ensure access to affordable health services/medicines,
especially promotion of generic medicines.
• There is needs to promote sustainable consumption and production by
providing incentives to green production & consumption.
• There is need to activate/empower consumer protection council at
national/state/district level.
• There should be case management system in Consumer Fora for proper
monitoring of disposal to ensure timely disposal.
24

25. 25
Thank You
Amarjeet Singh,
CUTS International
D- 217, Bhaskar Marg,
Bani Park, Jaipur 302 016, India
Project Webpage: http://www.cuts-international.org/CART/ConsumersUp/