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Course Name : MFC

Course Name : MFC. Faculty Name: SANTOSH KUMARI E-mail : santoshsrcc@gmail.com. CONSUMER PROTECTION. BY SANTOSH KUMARI, ASSISTANT PROFESSOR, DEPARTMENT OF COMMERCE, SHRI RAM COLLEGE OF COMMERCE, (www.srcc.edu) UNIVERSITY OF DELHI,

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Course Name : MFC

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  1. Course Name : MFC Faculty Name: SANTOSH KUMARI E-mail : santoshsrcc@gmail.com

  2. CONSUMER PROTECTION BY SANTOSH KUMARI, ASSISTANT PROFESSOR, DEPARTMENT OF COMMERCE, SHRI RAM COLLEGE OF COMMERCE, (www.srcc.edu) UNIVERSITY OF DELHI, DELHI-110007.INDIA

  3. INTRODUCTION Introduction Now a days every marketer is well aware with the fact that – “consumer is the king”. Consumer is one who is going to ultimately decide the destiny of their product. That is way, now a days marketers are consumer centered / consumer oriented. They are very conscious to know – “What consumers want ? What are their needs ? What they expect from them ? But in spite of that, there are some organizations who cheat consumers by providing deceptive, misleading and false information to their consumers by way of their advertisement. As a result consumer suffer. In order to safeguard consumers in to days world, there is an Act known as “Consumer protection Act” which contains all the provisions relating to – how to safeguard consumers right.

  4. Consumer protection Act • AimofConsumerProtectionAct(CPA)istoaddressthegrievancesoftheconsumersandprotectingthemfromtheunethicalpractices /behaviororunfairtradepracticesofthemanufacturer/supplier. Earlierthoughtherewereseverallegislationstoprotecttheconsumer,butthesameneverprovedadequatetoprotectconsumerandcompensatethemfortheircompliances.CPAbecomestatutoryumbrellawhichmadetheconsumerfeellikeaking.CPAnotonlyenhancestheawarenessandeducatetheconsumerbutalsoprovidecompensationtothembysummaryandinexpensiveproceedings.Thiskeepsmanufacturerandthetraderalert,creativeandinnovative. CONSUMER PROTECTION ACT

  5. Intheeraoffreecompetition,markethasbecomeverydynamicandmarginshavesqueezesout.Thesegaverisetoadoptothermeans/unfairmeansorpracticesinexecutionoftransactions,whichresultedintoincreasedgrievancesatconsumerfront.Hence,theneedfortheCPAhasbecomemorerelevantthanthepast,wheremonopolywasthekeyfactor.Intheeraoffreecompetition,markethasbecomeverydynamicandmarginshavesqueezesout.Thesegaverisetoadoptothermeans/unfairmeansorpracticesinexecutionoftransactions,whichresultedintoincreasedgrievancesatconsumerfront.Hence,theneedfortheCPAhasbecomemorerelevantthanthepast,wheremonopolywasthekeyfactor.

  6. 1.1BasicNeedfortheConsumerProtectionAct TodayConsumerrightsareanintegralpartofourlivesliketheconsumeristwayoflife.Wehaveallmadeuseofthematsomepointinourdailylives.Marketresourcesandinfluencesaregrowingbythedayandsoistheawarenessofonesconsumerrights.TheserightsarewelldefinedandthereareagenciesliketheGovernment,consumercourtsandvoluntaryorganizationsthatworktowardssafeguarding.Iftheserightsarewelldefinedthenthebasicquestioniswhyatalltheconsumerneedsprotection?ithastobefollowedby themanufacturers / suppliers.

  7. 1.1BasicNeedfortheConsumerProtectionAct 1.IlliteracyandIgnorance 2.UnorganizedConsumers 3.SpuriousGoods 4.DeceptiveAdvertising 5.MalpracticesofBusinessmen 6.FreedomofEnterprise 7.LegitimacyforExistence 8. Trusteeship

  8. Soletuslookatfewreasonsbecauseofwhichconsumerneedsprotection • 1.IlliteracyandIgnorance:ConsumersinIndiaaremostlyilliterateandignorant.Theydonotunderstandtheirrights.Asystemisrequiredtoprotectthemfromunscrupulousbusinessmen. • 2.UnorganizedConsumers:InIndiaconsumersarewidelydispersedandarenotunited.Theyareatthemercyofbusinessmen.Ontheotherhand,producersandtradersareorganizedandpowerful. • .

  9. 3.SpuriousGoods:Thereisincreasingsupplyofduplicateproducts.Itisverydifficultforanordinaryconsumertodistinguishbetweenagenuineproductanditsimitation.Itisnecessarytoprotectconsumersfromsuchexploitationbyensuringcompliancewithprescribednormsofqualityandsafety.3.SpuriousGoods:Thereisincreasingsupplyofduplicateproducts.Itisverydifficultforanordinaryconsumertodistinguishbetweenagenuineproductanditsimitation.Itisnecessarytoprotectconsumersfromsuchexploitationbyensuringcompliancewithprescribednormsofqualityandsafety. • 4.DeceptiveAdvertising:Somebusinessmengivemisleadinginformationaboutquality,safetyandutilityofproducts. Consumersaremisledbyfalseadvertisementanddonotknowtherealqualityofadvertisedgoods.Amechanismisneededtopreventmisleadingadvertisements.

  10. 5.MalpracticesofBusinessmen:Fraudulent,unethicalandmonopolistictradepracticesonthepartofbusinessmenleadtoexploitationofconsumers.Consumersoftengetdefective,inferiorandsubstandardgoodsandpoorservice.Certainmeasuresarerequiredtoprotecttheconsumersagainstsuchmalpractices.5.MalpracticesofBusinessmen:Fraudulent,unethicalandmonopolistictradepracticesonthepartofbusinessmenleadtoexploitationofconsumers.Consumersoftengetdefective,inferiorandsubstandardgoodsandpoorservice.Certainmeasuresarerequiredtoprotecttheconsumersagainstsuchmalpractices. 6.FreedomofEnterprise:Businessmenmustensuresatisfactionofconsumers.Inthelongrun,survivalandgrowthofbusinessisnotpossiblewithoutthesupportandgoodwillofconsumers.Ifbusinessdoesnotprotectconsumer’sinterests,Governmentinterventionandregulatorymeasureswillgrowtocurbunfairtradepractices.

  11. 7.LegitimacyforExistence:Businessexiststosatisfytheneedsanddesiresofconsumers.Goodsareproducedwiththepurposeofsellingthem.Goodswill,inthelongrun,sellonlywhentheymeettheneedsofconsumers.7.LegitimacyforExistence:Businessexiststosatisfytheneedsanddesiresofconsumers.Goodsareproducedwiththepurposeofsellingthem.Goodswill,inthelongrun,sellonlywhentheymeettheneedsofconsumers. • Trusteeship:Businessmenaretrusteesofthesociety'swealth.Therefore,theyshouldusethiswealthforthebenefitofpeople. • Whileweliketoknowaboutourrightsandmakefulluseofthem,consumerresponsibilityisanareawhichisstillnotdemarcatedanditishardtospelloutthatalltheresponsibilitiesthataconsumerissupposedtoshoulder.

  12. 1.2Objectives&purposeoftheAct Thebasicobjective/purposeofthisActistoprovideforbetterprotectionoftheinterestoftheconsumersandforthatpurposetomakeprovisionsfortheestablishmentofconsumercouncilsandotherauthoritiesforthesettlementofconsumer’sdisputeandformattersconnectedtherewith.Hence,thebasicobjectiveistoPROTECTandnottoprovidealoopholeandexcusestowellorganizedtraders,producersandbigbusinesshousesandmanufacturesontechnicalgrounds.EducatingtheconsumerregardingtheirrightsandtopropagateawarenessabouttheActandtheethicalpractices/meanswastheotherpurposeoftheact.

  13. 1.3Changingphases&Evolution • IntheearlyyearswhenwelfarelegislaturesliketheconsumerprotectionActdidnotexist,themaximCaveatemptor(letthebuyerbeware)governedthemarketdeals.

  14. Britishregime: DuringtheBritishregime(1765-1947),alsoknownasthe‘ColonialEra’,Government’seconomicpolicesinIndiawereconcernedmorewithprotectingandpromotingtheBritishintereststhanwithadvancingthewelfareofthenativepopulation.Theadministration’sprimaryper-occupationwaswithmaintaininglawandorder,taxcollectionanddefense.AccordinglymuchofthelegalizationenactedduringtheBritishregimewasprimarilyaimedatservingthecolonialrulersintendofthenatives.Therewere,however,somepiecesoflegislationwhichprotectedtheoverallpublicinterestthroughnotnecessarilytheconsumerinterest.Prominentamongthesewere:theIndianPenalcode,1860,thesaleofGoodsact, 1930,thedangerousdrugsact,1930andthedrugsandcosmeticsact,1940.Inasense,thesaleofgoodact,andtheprinciplesofthelawoftortsweremorefortheprotectionofthetraderthantheconsumer.

  15. ThePost-IndependenceScenario: • Growingurbanizationduetoheavyindustrializationresultedinproliferationofhumanneeds-ofbasicnecessariesandalsoofluxuries.Duetotheshortageofcertainnecessariesandeventheirnon-availabilityatreasonablerateswithgrowingmenaceofadulteration,itwasfoundnecessarytoempowertheGovernmenttocontroltheirproduction,quality,supply,anddistribution.Thereforethedecadeof1950s,rightfromtheverybeginning,sawtheenactmentofanumberoflawstosafeguardtheinterestsoftheconsumersfromvariousangles.

  16. TheenactmentoftheBankingCompaniesAct,1949(latercalledTheBankingRegulationAct)toamendandconsolidatetheLawrelatedtobankingmattersaswellastheIndustries(DevelopmentandRegulation)Act,1951toimplementtheIndustrialPolicyResolutionof1948wereamongtheearlieststapestakenbytheNationalGovernmentinIndiainthedirectionofconsumerprotection.TheenactmentoftheBankingCompaniesAct,1949(latercalledTheBankingRegulationAct)toamendandconsolidatetheLawrelatedtobankingmattersaswellastheIndustries(DevelopmentandRegulation)Act,1951toimplementtheIndustrialPolicyResolutionof1948wereamongtheearlieststapestakenbytheNationalGovernmentinIndiainthedirectionofconsumerprotection. • AsaresultofthischangeinscenariobusinesshasnowcometobesubstantiallyregulatedbyGovernmentandAuthoritiesinfavorofconsumers.

  17. COMPLAINT 2.1. Who can file a complain “Complainant"- (i)Aconsumer ;or (ii)Anyvoluntaryconsumerassociationregisteredunderthe CompaniesAct,1956(1of1956)orunderanyotherlawforthetime beinginforce;or (iii)TheCentralGovernmentoranyStateGovernment; (iv)Oneormoreconsumers,wheretherearenumerousconsumers havingthesameinterest ;

  18. 2.2.“Complaint"meansanyallegationinwritingmadebyacomplainantthat-2.2.“Complaint"meansanyallegationinwritingmadebyacomplainantthat- (i)Anunfairtradepracticeorarestrictivetradepracticehasbeenadoptedbyanytrader; (ii)Thegoodsboughtbyhimoragreedtobeboughtbyhimsufferfromoneormoredefects; (iii)Theserviceshiredoravailedoforagreedtobehiredoravailedofbyhimsufferfromdeficiencyinanyrespect;

  19. (iv)atraderhaschargedforthegoodsmentionedinthecomplaintapriceinexcessofthepricefixedbyorunderanylawforthetimebeinginforceordisplayedonthegoodsoranypackagecontainingsuchgoods;(iv)atraderhaschargedforthegoodsmentionedinthecomplaintapriceinexcessofthepricefixedbyorunderanylawforthetimebeinginforceordisplayedonthegoodsoranypackagecontainingsuchgoods; • (v)goodswhichwillbehazardoustolifeandsafetywhenused,arebeingofferedforsaletothepublicincontraventionoftheprovisionsofanylawforthetimebeinginforcerequiringtraderstodisplayinformationinregardtothecontents,mannerandeffectofuseofsuchgoods,

  20. 2.3.“Consumer”meansanypersonwho- (i)Buysanygoodsforselfuseorwiththeapprovalofselfperson,butdoesnotincludeapersonwhoobtainssuchgoodsforresaleorforanycommercialpurposeor (ii)Hiresforavailsofanyservicesforselfuseorwhensuchservicesareavailedwiththeapprovalthefirstmentionedperson.

  21. 2.4."Consumerdispute" "Consumerdispute"meansadisputewherethepersonagainstwhomacomplainthasbeenmade,deniesordisputestheallegationscontainedinthecomplaint; 2.5."Trader" "Trader"inrelationtoanygoodsmeansapersonwhosellsordistributesanygoodsforsaleandincludesthemanufacturerthereof,andwheresuchgoodsaresoldordistributedinpackageform,includesthepackerthereof;

  22. Rights of Consumer InternationalConsumerRights: Webster'sdictionarydefinesconsumerismas"amovementfortheprotectionoftheconsumeragainstdefectiveproducts,misleadingadvertising,etc."Limitedconsumerprotectionwaspresentuntilthe1950sandearly1960s.Inthe1950s,asignificantbreakthroughoccurredwiththeestablishmentoftheproduct-liabilityconcept,wherebyaplaintiffdidnothavetoprovenegligencebutonlyhadtoprovethatadefectiveproductcausedaninjury.Inhis1962speechtoCongress,PresidentJohnF.Kennedyoutlinedfourbasicconsumerrights,whichlaterbecameknownastheConsumerBillofRights.Later,in1985,theUnitedNationsendorsedKennedy'sConsumerBillofRightsandexpandedittocovereightconsumerrights.Consumerprotectioncanonlysurviveinhighlyindustrializedcountriesbecauseoftheresourcesneededtofinanceconsumerinterests.

  23. Therearetwohundredandsixtyconsumerorganizationsinoveronehundredcountriesaroundtheworldstrivestopromoteafairersocietythroughdefendingtherightsofallconsumers,includingthepoorandthemarginalised,bysupportingandstrengtheningmemberorganisationsandtheconsumermovementingeneral;campaigningforconsumerrights'tobeplacedattheheartofpolicy-makingtoencouragesustainabledevelopment.Therearetwohundredandsixtyconsumerorganizationsinoveronehundredcountriesaroundtheworldstrivestopromoteafairersocietythroughdefendingtherightsofallconsumers,includingthepoorandthemarginalised,bysupportingandstrengtheningmemberorganisationsandtheconsumermovementingeneral;campaigningforconsumerrights'tobeplacedattheheartofpolicy-makingtoencouragesustainabledevelopment.

  24. ThereareeightkeyinternationalconsumerrightsasdefinedbytheUnitedNationsGuidelineforConsumerProtection1985.ThereareeightkeyinternationalconsumerrightsasdefinedbytheUnitedNationsGuidelineforConsumerProtection1985. Theycanbesimplifiedintothefollowing: —Therighttoaccesstobasicneeds —Tosafety —Toinformation —Tochoice —Torepresentation —Toconsumereducation —Toredress —Healthyenvironment

  25. InIndiatosafeguardconsumerinterest,followingrightswereenvisioned.InIndiatosafeguardconsumerinterest,followingrightswereenvisioned. RighttoSafety RighttoInformation RighttoChoice RighttobeHeard TheRighttoRedress Therighttoconsumereducation TheRighttoBasicNeedsand Therighttoahealthyandsustainedenvironment.

  26. 1.RighttoBasicNeeds Accesstofood,waterandshelterarethebasisofanyconsumer'slife.Withoutthesefundamentalamenities,lifecannotexist.InSeptember2001,India'sstockoffoodgrainswerearound60milliontonnes,yetonethirdoftheIndianpopulationlivesbelowthepovertylineandconsumersoftengohungryorremainseverelymalnourished,leadingtopoorhealth.TherecentstarvationdeathsinOrissaareacaseinpoint.Averycrucialobjectiveoftheconceptualizationandexistenceofconsumerrightsistoensurethatconsumershaveanassuredfoodsupply,safeandpermanentdwellings,andbasicamenitiesoflifelikesanitationandpotablewater,andpowersupply.

  27. Urbanizationsisseenasamarkofdevelopmentbutforruralmigrantpopulation,livingconditionsincitiesisverypoor.ThepopulationofcitiesisgrowingrapidlyinIndiaandafter1988,thepercentageofurbanpoorhasbeenmorethanthatoftheruralpoor.Around20to25percentoftheurbanhouseholdsliveinslums,make-shiftcoloniesorrefugeesettlementsduetonon-availabilityofaffordableanddecenthabitatinurbanareas..Accordingtosomeestimates,inurbanareasalone,thereisahousingshortageof17millionunits.ThishasledtoahabitatcrisisinIndiancities.InruralIndia,thesituationisequallybad,withalargepartofthepopulationstilllivinginmake-shiftdwellingsandhutment.Withnon-permanenthousingcomeslackofsanitationfacilitiesandotheramenitieslikerunningwaterandelectricitysupply.Duetoburgeoningpopulation,mostpeopledonothaveaccesstodrytoiletsinruralandurbanareas.Urbanizationsisseenasamarkofdevelopmentbutforruralmigrantpopulation,livingconditionsincitiesisverypoor.ThepopulationofcitiesisgrowingrapidlyinIndiaandafter1988,thepercentageofurbanpoorhasbeenmorethanthatoftheruralpoor.Around20to25percentoftheurbanhouseholdsliveinslums,make-shiftcoloniesorrefugeesettlementsduetonon-availabilityofaffordableanddecenthabitatinurbanareas..Accordingtosomeestimates,inurbanareasalone,thereisahousingshortageof17millionunits.ThishasledtoahabitatcrisisinIndiancities.InruralIndia,thesituationisequallybad,withalargepartofthepopulationstilllivinginmake-shiftdwellingsandhutment.Withnon-permanenthousingcomeslackofsanitationfacilitiesandotheramenitieslikerunningwaterandelectricitysupply.Duetoburgeoningpopulation,mostpeopledonothaveaccesstodrytoiletsinruralandurbanareas.

  28. 2.RighttoSafeEnvironment Forurbanconsumers,environmentmeansparks,gardens,anddeterioratingairandwaterquality.Mosturbanareasarebereftofanywildlifeandpeopleareunawareofthebiodiversityaroundthem.Ontheotherhand,ruralconsumersrelyontheirenvironmentforfulfillmentoftheirbasicneeds. Theneedforenvironmentalconservationisseenasanecessarydefenceagainstdeterioratingqualityoflifeworld-wide.Weareallvictimsofcontaminatedfoodandwatersupply,pesticide-riddenfood,adulteratedmilkandchokingexhaustfumesemittingfromvehicles.AccordingtoaWorldBankreport,Indiaisbeingpushedbackduetoitshighenvironmentalcosts.WelosearoundRs24,500croreseveryyearintermsofairandwaterpollutionalone.

  29. Ifyouliveinacity,youmusthaveexperiencedairandwaterpollutionatsomepointoftime.Childrenoftenfall illduetopollutedenvironments,itleadstoincreasedhealthcostsanddiscomfortforconsumers.Valuableresourcesandman-daysarelostduetopollutedenvironmentandlivingconditions.Consumersneedtounderstandthatonlyasafeenvironmentcanensurethefulfilmentoftheirconsumerrights. • InternationalStandardsforSafeguardingRighttoSafeEnvironment • ConsumersInternational(anodalagencyofconsumerorganisationsfromallovertheworld)hasmadecertainguidelinesforensuringconsumers'righttosafeenvironment.

  30. Consumersshouldbeprotectedfromenvironmentalpollutionby: 1.Promotingtheuseofproductswhichareenvironmentallysustainable. 2.Encouragingrecycling 3.Requiringenvironmentallydangerousproductstocarryappropriatewarningsandinstructionsforsafeuseanddisposal.

  31. Promotetheuseofnon-toxicproductsby: • 1.Raisingconsumerawarenessofalternativestotoxicproducts • 2.Establishingprocedurestoensurethatproductsbannedoverseasdonotenternationalmarkets. • 3.Ensurethatthesocialimpactsofpollutionareminimized. • 4.Promoteethical,sociallyandenvironmentallyresponsiblepracticesbyproducersandsuppliersofgoodsandservices.

  32. Ruralconsumersareinvariablyclosertotheirenvironmentthanurbanconsumers.Theirlivelihoodsandwayoflifedependontheenvironmentaroundthem.Theirfirewoodandsourcesofenergycomefromtrees,manureforfieldscomesfromlivestock,waterisprocuredeitherfromundergroundwatersupplyorfromrivers,thecropsheavilydependonannualrainfall,evenpesticidesforsafeguardingofcropsandstoragealsocomefromtreeslikeneem.Inshort,theruralliferevolvesaroundnaturalresources.Forthem,thisdependenceontheenvironmentiscompleteandtheyhaveastakeinitspreservation,whetheritisforbuildingtheirhouses,fodderfortheircattleetc.Ruralconsumersareinvariablyclosertotheirenvironmentthanurbanconsumers.Theirlivelihoodsandwayoflifedependontheenvironmentaroundthem.Theirfirewoodandsourcesofenergycomefromtrees,manureforfieldscomesfromlivestock,waterisprocuredeitherfromundergroundwatersupplyorfromrivers,thecropsheavilydependonannualrainfall,evenpesticidesforsafeguardingofcropsandstoragealsocomefromtreeslikeneem.Inshort,theruralliferevolvesaroundnaturalresources.Forthem,thisdependenceontheenvironmentiscompleteandtheyhaveastakeinitspreservation,whetheritisforbuildingtheirhouses,fodderfortheircattleetc.

  33. 3.RighttoSafety Consumerrighttosafetyisasvastinitspurviewasthemarketreachitself.Itappliestoallpossibleconsumptionpatternsandtoallgoodsandservices.Inthecontextofthenewmarketeconomyandrapidtechnologicaladvancesaffectingthemarket,therighttosafetyhasbecomeapre-requisitequalityinallproductsandservices.Fore.g.someIndianproductscarrytheISImark,whichisasymbolofsatisfactoryqualityofaproduct?Similarly,theFPOandAGMARKsymbolisestandardqualityoffoodproducts.Themarkethasforlongmadeconsumersbelievethatbyconsumingpackagedfoodormineralwater,consumerscansafeguardtheirhealth.Thisnotionhasbeenprovedwrongtimeandagainduetorampantfoodadulterationinmarketproducts.Righttofoodsafetyisanimportantconsumerrightsinceitdirectlyaffectsthehealthandqualityoflifeofconsumers.

  34. Earlier,theinterpretationoftherighttosafetywaslimitedtoelectronicproductsandothersuchproducts.Now,itsdefinitionhasexpandedalottoincludesafetyaspectsofnewtechnologieslikeGMfood,foodlabeling,chemicalingredientsinfoodproductsetc.Intoday'sscenarioofglobalisation,consumershavenocontroloverwheretheproductsorcommoditiestheyuse,comefrom.Forinstance,thechocolatesorsyrupsweconsume,maybemanufacturedincountriesasfarastheU.S.orAustralia.ConsumersinIndiawouldhavenocontroloverorknowledgeofthemanufacturingpracticesofthosecountriesandwillhavetorelycompletelyonimportregulationsoftheIndiangovernmentandfoodlabelling.Thismakestheconsumerrighttosafetyaveryimportantandcriticalissueforconsumers.Earlier,theinterpretationoftherighttosafetywaslimitedtoelectronicproductsandothersuchproducts.Now,itsdefinitionhasexpandedalottoincludesafetyaspectsofnewtechnologieslikeGMfood,foodlabeling,chemicalingredientsinfoodproductsetc.Intoday'sscenarioofglobalisation,consumershavenocontroloverwheretheproductsorcommoditiestheyuse,comefrom.Forinstance,thechocolatesorsyrupsweconsume,maybemanufacturedincountriesasfarastheU.S.orAustralia.ConsumersinIndiawouldhavenocontroloverorknowledgeofthemanufacturingpracticesofthosecountriesandwillhavetorelycompletelyonimportregulationsoftheIndiangovernmentandfoodlabelling.Thismakestheconsumerrighttosafetyaveryimportantandcriticalissueforconsumers.

  35. Safetyofnaturalfoodproductsisalsoaproblemofgrowingconcernsinceduetoincreasedchemicalinputsinfarms,ourfoodsupplyisbeingcontaminatedwithpesticidesandchemicals.Thisposesagravedangertoconsumerhealth.Fornon-vegetarians,theproblemisevenmoreserioussincefoodanimalsarebeingfedanti-bioticstofightdiseasesamonganimalsandboosttheirgrowth.Thiscanhaveseriousrepercussionsonconsumerhealth.Safetyofnaturalfoodproductsisalsoaproblemofgrowingconcernsinceduetoincreasedchemicalinputsinfarms,ourfoodsupplyisbeingcontaminatedwithpesticidesandchemicals.Thisposesagravedangertoconsumerhealth.Fornon-vegetarians,theproblemisevenmoreserioussincefoodanimalsarebeingfedanti-bioticstofightdiseasesamonganimalsandboosttheirgrowth.Thiscanhaveseriousrepercussionsonconsumerhealth.

  36. 4.RighttoInformation Righttoinformationmeanstherighttobegiventhefactsneededtomakeaninformedchoiceordecisionaboutfactorslikequality,quantity,potency,puritystandardsandpriceofproductorservice.Therighttoinformationnowgoesbeyondavoidingdeceptionandprotectionagainstmisleadingadvertising,improperlabellingandotherpractices.Fore.g.whenyoubuyaproductorutiliseaservice,youshouldbeinformedabouta)howtoconsumeaproductb)theadversehealtheffectsofitsconsumptionc)Whethertheingredientsusedareenvironment-friendlyornotetc. Duetotheeverincreasinginfluenceofthemarketandtheeverchangingscenewithpricewarsandhard-selltechniques,theconsumer'srighttoinformationbecomesevenmoreimportant.

  37. Therighttoinformationmeansmuchmorethansimpledisclosureoftheproduct'sweightorprice.Aconsumerhastherighttoknowhowtheproducthasbeenprepared,whetherithasbeentestedoranimalsornot,ifenvironmentally-soundtechniquesandresourceshavebeenusedinitsproductionprocesses,whatkindsofchemicalsareusedintoitsmanufacturingandwhatcouldbetheirimpactonconsumerhealth.Clearly,aconsumerhastoconsideralotoffactorsbefores/hebuysaproduct.Therighttoinformationmeansmuchmorethansimpledisclosureoftheproduct'sweightorprice.Aconsumerhastherighttoknowhowtheproducthasbeenprepared,whetherithasbeentestedoranimalsornot,ifenvironmentally-soundtechniquesandresourceshavebeenusedinitsproductionprocesses,whatkindsofchemicalsareusedintoitsmanufacturingandwhatcouldbetheirimpactonconsumerhealth.Clearly,aconsumerhastoconsideralotoffactorsbefores/hebuysaproduct. • Ideally, a consumer should have knowledge of the entire ‘cradle to grave' journeyof the product to determine whether its safe and beneficial for use or no. The‘cradle to grave journey' refers to the processes a product goes through- from the time of it being made out of raw material, the processes of its moulding into its final shape, transportation, labour, ingredients used, to the form in which it endsup on market shelves. It is only when a consumer is aware of the history of the product that he can make informed choices.

  38. AnexampleofthisistheGMfoodcontroversy.GMfoodispromotedastheanswertoworld'shungerandmalnutritionbutitssafetyforconsumersandtheenvironmentisyettobeproved.Despitestronglobbyingbypro-GMgroupsandthemarket,consumersinEuropehavecampaignedeffectivelyagainsttheentryofGMfoodintotheirfoodchainandmarkets.ThereareinformationandpublicitycampaignsthathavemadeconsumersrallybehindacommonconsumerstandagainstGMfood.Asaresult,thegovernmentsandtheEuropeanUnionhaveplacedstrictrestrictionsonthetrialusesofGMtechnologyinthemarketorinagriculture.AnexampleofthisistheGMfoodcontroversy.GMfoodispromotedastheanswertoworld'shungerandmalnutritionbutitssafetyforconsumersandtheenvironmentisyettobeproved.Despitestronglobbyingbypro-GMgroupsandthemarket,consumersinEuropehavecampaignedeffectivelyagainsttheentryofGMfoodintotheirfoodchainandmarkets.ThereareinformationandpublicitycampaignsthathavemadeconsumersrallybehindacommonconsumerstandagainstGMfood.Asaresult,thegovernmentsandtheEuropeanUnionhaveplacedstrictrestrictionsonthetrialusesofGMtechnologyinthemarketorinagriculture. Recently,ithascometolightthatmostcosmeticslikelipsticks,kajalandmascaraaretestedonanimalsinlaboratoriestoseewhethertheyhaveanyadverseeffectsonthemorno.TherewasalsoacontroversyabouthowNikeshoecompanywasusingsweatlabourinSouthAsiancountries,payingitsworkersabysmallylowwagesformanufacturingshoes.Similarly,therewasa‘McLibel'caseagainstMcDonald'sallegingthatMcDonald'sgeneratedalotlotofunwantedwasteduetoitsexcessivepackagingandharmedtheenvironment.

  39. Theadvertisingtechniquesofmanyproducts,directlytargetingandfeaturingchildrenhavealsobeenquestioned.Manyparentsdon'tevenknowthattheirchildrenarebeingtargetedbymarketsurveyorstodeterminetheirconsumptionhabitsbycollectingdatathroughsurveys,interviewsandbyofferingfreesampleofproducts. Theadvertisingtechniquesofmanyproducts,directlytargetingandfeaturingchildrenhavealsobeenquestioned.Manyparentsdon'tevenknowthattheirchildrenarebeingtargetedbymarketsurveyorstodeterminetheirconsumptionhabitsbycollectingdatathroughsurveys,interviewsandbyofferingfreesampleofproducts. Itisnotjusttheconsumerswhouseinformationgatheringordisseminatingtechniquesandtoolstoprotecttheirconsumerrights.Informationdisseminationisalsousedveryextensivelybyadvertisersandthemarkettogettheirmessageacrosstotheconsumer.Toolsandagenciesofinformationlikenewspapers,printmedia,televisionandtheInternetareutilisedbymarketingofconsumerproductsandservices.Thishasmadeadvertisingamulti-milliondollarindustryinIndiaandalsoworld-wide.

  40. 5.RighttoRedress Competitionistheby-productofthemarketeconomy.Everyday,manufacturersarediscoveringnewerwaysofcheatinganddupingconsumers.Unscrupulousmarketpracticesarefindingtheirwayintoconsumerhomes,violatingconsumerrightsandjeopardisingtheirsafety.Itistoprotectconsumerintereststhatconsumershavebeengiventherighttoobtainredress.InIndia,wehavearedressmachinerycalledConsumerCourtsconstitutedundertheConsumerProtectionAct(1986),functioningatnationalstateanddistrictlevels.Butithasnotbeenmadecompleteuseofunderduetolackofawarenessofbasicconsumerrightsamongconsumersthemselves.

  41. Whileinthedevelopedworld,righttoredressisperhapsthemostcommonlyexercisedconsumerright,indevelopingcountries,consumersarestillwaryofgettinginvolvedinlegalredresssystem.ThereareconsumercourtsinIndiawhereanyconsumercanlodgeacaseifs/hethinksheorshehasbeencheated.Thedetailsofhowtolodgeacomplainthavebeenexplainedelsewhereinthemanual.Whileinthedevelopedworld,righttoredressisperhapsthemostcommonlyexercisedconsumerright,indevelopingcountries,consumersarestillwaryofgettinginvolvedinlegalredresssystem.ThereareconsumercourtsinIndiawhereanyconsumercanlodgeacaseifs/hethinksheorshehasbeencheated.Thedetailsofhowtolodgeacomplainthavebeenexplainedelsewhereinthemanual.

  42. 6.RighttoConsumerEducation Consumereducationempowersconsumerstoexercisetheirconsumerrights.Itisperhapsthesinglemostpowerfultoolthatcantakeconsumersfromtheirpresentdisadvantageouspositiontooneofstrengthinthemarketplace.Consumereducationisdynamic,participatoryandismostlyacquiredbyhands-onandpracticalexperience.Forinstance,awomanwhomakespurchasedecisionsforthehouseholdanddoestheactualbuyinginthemarketplacewouldbemoreeducatedaboutmarketconditionsand‘bestbuys'thanapersonwhoeducateshimselfaboutthemarketwiththehelpofnewspapersortelevision.Also,today,itisnotjustthemarketorproductsthataconsumerneedstoeducatehimaboutbuts/healsoneedstoknowaboutcompanyprofile,governmentpoliciesandintroductionofnewtechnology.

  43. Marketinfluenceshavegrownsomuchthat,notjustwholesaleandretailsellersbutevenmedicalpractitionersarefallingpreytotheirpressures.Thepharmaceuticalindustryisonesuchexample.India,withits1billionpopulationandlargelyuneducatedconsumers,isaverylucrativemarketforthisindustry.Thepharmaceuticalindustry,toboostitssales,offersfreesamplesofmedicines,freebies,andevenfreeluxuryholidaystophysicianstoinfluencethemtousetheirbrandsandgivethempreferenceoverotherbrandnames.TherehavebeenmanyinstanceswhendrugsbannedincountrieslikeUS,havebeenprescribedtoIndianconsumersandarereadilyavailableasover-the-counterdrugs.Itisasadexampleofgrossviolationofconsumertrustbymedicalpractitioners.Thissituationisrampantnotjustinruralareasbutalsoamongeducatedurbanconsumers.Thereasonwhythemarket,inconnivancewithphysicians,isabletoexploitconsumersisthatIndianconsumersarenotawareoftheprevailingsituationanddonotkeepthemselvesabreastwithlatestdevelopmentstakingplacearoundthem.Consumereducationcanplayacrucialroleinprotectingconsumersagainstsuchdangers.Marketinfluenceshavegrownsomuchthat,notjustwholesaleandretailsellersbutevenmedicalpractitionersarefallingpreytotheirpressures.Thepharmaceuticalindustryisonesuchexample.India,withits1billionpopulationandlargelyuneducatedconsumers,isaverylucrativemarketforthisindustry.Thepharmaceuticalindustry,toboostitssales,offersfreesamplesofmedicines,freebies,andevenfreeluxuryholidaystophysicianstoinfluencethemtousetheirbrandsandgivethempreferenceoverotherbrandnames.TherehavebeenmanyinstanceswhendrugsbannedincountrieslikeUS,havebeenprescribedtoIndianconsumersandarereadilyavailableasover-the-counterdrugs.Itisasadexampleofgrossviolationofconsumertrustbymedicalpractitioners.Thissituationisrampantnotjustinruralareasbutalsoamongeducatedurbanconsumers.Thereasonwhythemarket,inconnivancewithphysicians,isabletoexploitconsumersisthatIndianconsumersarenotawareoftheprevailingsituationanddonotkeepthemselvesabreastwithlatestdevelopmentstakingplacearoundthem.Consumereducationcanplayacrucialroleinprotectingconsumersagainstsuchdangers.

  44. IntheIndiancontext,sustainabilityandtraditionalknowledgecanplayavitalroleinempoweringconsumersbutconsumersareunabletoconnecttotheirknowledgebase.Consumereducationcanrejointhebrokenlinkandmaketraditionalknowledgeaccessibletoconsumersagain.Somesourcesofconsumereducationarepastexperiencesofconsumers,informationdisseminationby governmentagenciesandNGOs,classroomteachingbyteachersandinformallessonsbyparents .

  45. Dispute Settlement 4. DisputeSettlementThreetierMechanism TheConsumerProductionActprovidesforathreetiersystemofredressalagencies: (1)Districtlevelknownas‘DistrictForum’ ; (2)Statelevelknownas'StateCommission',and (3)Nationallevelknownas'NationalCommission'.

  46. Acomplaintistobemadetothedistrictforumoftheconcerneddistrictwherethevalueofgoodsandservicesandcompensation,ifany,isuptoRs20lakhs.Acomplaintistobemadetothedistrictforumoftheconcerneddistrictwherethevalueofgoodsandservicesandcompensation,ifany,isuptoRs20lakhs. Acomplaintistobemadetothe'StateCommission'betweenRs20lakhsandRs100lakhs. AcomplaintistobemadetotheNationalCommissionformorethanRs100lakhs. Interestingly,thereisprovisionforappealsagainsttheordersofaparticularredessalforumbytheaggrievedpartybeforethenexthigherechelonandevenfromthefindingsoftheNationalCommissionbeforetheSupremeCourt.

  47. CONSUMER DISPUTES REDRESSAL AGENCIES 1)DistrictForum CompositionoftheDistrictForum.— 1.EachDistrictForumshallconsistof,— (a)President:apersonwhois,orhasbeen,orisqualifiedtobeaDistrictJudge,whoshallbeitsPresident; (b)Member:twoothermembers,oneofwhomshallbeawoman,whoshallhavethefollowingqualifications,namely:—

  48. (i)benotlessthanthirty-fiveyearsofage, (ii)Possessabachelor'sdegreefromarecognizeduniversity, (iii)bepersonsofability,integrityandstanding,andhaveadequateknowledgeandexperienceofatleasttenyearsindealingwithproblemsrelatingtoeconomics,law,commerce,accountancy,industry, publicaffairsoradministration:

  49. Everyappointmentundersub-section(I)shallbemadebytheStateGovernmentontherecommendationofaselectioncommitteeconsistingofthefollowing,namely:—Everyappointmentundersub-section(I)shallbemadebytheStateGovernmentontherecommendationofaselectioncommitteeconsistingofthefollowing,namely:— (i)ThePresidentoftheStateCommission—Chairman. (ii)Secretary,LawDepartmentoftheState—Member. (iii)SecretaryinchargeoftheDepartmentdealingwith ConsumeraffairsintheState—Member. 2.EverymemberoftheDistrictForumshallholdofficeforatermoffiveyearsoruptotheageofsixty-fiveyears,whicheverisearlier:

  50. JurisdictionoftheDistrictForum.— 1.Monetary:DistrictForumshallhavejurisdictiontoentertaincomplaintswherethevalueofthegoodsorservicesandthecompensation,ifany,claimed''doesnotexceedrupeestwentylakhs. 2.Territorial:AcomplaintshallbeinstitutedinaDistrictForumwithinthelocallimitsofwhosejurisdiction,— a)Theoppositepartyoreachoftheoppositeparties,actuallyandvoluntarilyresides b)Anyoftheoppositeparties,wheretherearemorethanone,atthetimeoftheinstitutionofthecomplaint,actuallyandvoluntarilyresides,insuchcases,eitherthepermissionoftheDistrictForumisgivenortheconsentoftheoppositepartyisnecessary. c)Ifthedisputeispendingthecivilcourt,theconsumerforumhasnojurisdictiontoentertainthesame.

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