DHARMASHASTRA NATIONAL LAW UNIVERSITY

JABALPUR, MADHYA PRADESH

NATIONAL CONFERENCE ON- ‘ THEMATIC AREAS IN

CONSUMER LAWS’: EMERGING TRENDS

Authored By:-

Parul Verma (9816610461)

Email- parulvermainfo@gmail.com

BALLB (2ND SEMESTER)

UJJWAL RANJAN RAO(7784878153)

Email- ujjwalrao35@gmail.com

BALLB (4 SEMESTER)

HIMACHAL PRADESH NATIONAL LAW UNIVERSITY, SHIMLA

 Consumer education and consumer movement

Abstract-

The consumer protection act, 1986 was passed to encourage the consumer about their rights, thus
consumer courts were set up by the legislation for the speedy and hassel free justice if the rights
of the consumer is infringed. The consumer courts were setup at district, state and at national
level for the settlement of the disputes where no such court law to be followed. But still with
passage of so many years the consumer movement has yet to get going in the India. The
movement has not bamboozled as many of the organization still have no interest or failed to
make an impact in spreading the awareness and education related to consumer laws. The
majority of the consumers in the country are still unaware of the fact that there is any court for
the consumers. The consumer right organizations blame the government and lack of fund for the
failure in spreading education and consumer movement.

In this paper the author criticizes the Consumer right organizations for their failure in the
consumer movement as well as the Government of India for the casual attitude towards the
consumer movement. This paper make an attempt to find a proper way to spread the consumer
movement across the country and makes an attempt to figure out the problem which the people
face in the consumer courts.
Introduction

The consumer education is not new to our culture as in the earlier days it started with the trade
itself as per the Arthsastra by Kautilya it is clear that the education and awareness of the
consumer were there but in the systematic manner. There are references about the concept of
protection of the consumer against the exploitation of the trader and industries, short weighment,
measurement, adulteration and the punishment were also provided for these offenses.

Consumer education is basically an education which brings about behavioural changes in a

person who goes to market to buy anything. Consumer education is the process of gaining the
knowledge and skills needed in managing consumer resources and taking actions to influence the
factors which affect consumer decisions. Consumer education addresses four issues i.e.
consumer decision making economics, personal finance, rights and responsibilities.

In the good olden days the principle of Caveat emptor‘, which meant buyer beware governed the
relationship between seller and the buyer. In the era of open markets buyer and seller come face
to face, seller exhibited his goods, and buyer thoroughly examined them and then purchased
them. It was assumed that he would use all care and skill while entering into transaction. The
maxim relieved the seller of the obligation to make disclosure about the quality of the product. In
addition, the personal relation between the buyer and the seller was one of the major factors in
their relations. But with the growth of trade and its globalization the rule no more holds true. It is
now impossible for the buyer to examine the goods before hand and most of the transactions are
concluded by correspondence. Further on account of complex structure of the modern goods, it is
only the producer or seller who can assure the quality of goods. With manufacturing activity
becoming more organised, the producers or sellers are becoming stronger and organised whereas
the buyers are still weak and unorganised. In the age of revolutionised information technology
and with the emergence of e-commerce related innovations the consumers are further deprived to
a great extent. As a result buyer is being misled, duped and deceived day in and day out.

Mahatma Gandhi, the father of nation, attached great importance to what he described as the
poor consumer, who according to him should be the principal beneficiary of the consumer
movement. He said: “A Consumer is the most important visitor on our premises. He is not
dependent on us we are on him. He is not an interruption to our work; he is the purpose of it. We
are not doing a favour to a consumer by giving him an opportunity. He is doing us a favour by
giving an opportunity to serve him”. In spite of these views consumerism is still in its infancy in
our country, thanks to the seller‘s market and the government monopoly in most services.
Consumer awareness is low due to the apathy and lack of education among the masses. No one
has told them about their rights – to be informed about product quality, price, protection against
unsafe products, access to variety of goods at competitive prices, consumer education etc. What
consumerism lacks here are education and information resources, testing facilities, competent
leadership, price control mechanism, and adequate quasi judicial machinery. The providers of
goods and services have been reluctant to give due consideration to consumer interest protection.
In present situation, consumer protection, though as old as consumer exploitation, has assumed
greater importance and relevance. Consumerism is a recent and universal phenomenon. It is a
social movement. Consumerism is all about protection of the interests of the consumers.

Consumer Education

We live in a society and consumption is an important part of our day to day life as we use of
significant amount of money and time for the day to day activity. The consumer society is
changing drastically as during 20th century the consumer had faced major changes in life style
and consumptions habit due to their culture, social, economic and technical influences and
factors. The increase in population, production of newer items and newer services also changes
in the purchasing method, all these led to the consumer constructing their individual identity in a
way which is different from the past. Today the consumption for the individual is natural and
identity is “I am what and how I shop” .

This development has created the need for consumers who can interpret relevant information and
corporate messages in order to make prudent choice. Yet, due to the enormous amount of
products and services available and to the variation in the quality of products and services,
consumers may not always be able to meet their personal needs effectively. Moreover,
commercial development constantly creates new artificial needs. Not all consumers will critically
filter messages from industry and from the advertising sector.
Consumer Need Information and Education

They need to develop an awareness of the difference between real and perceived needs and they
need the skills to be selective to truly obtain products and services which match their needs. In
addition, rapid changes and potential risks in consumption make it essential for the consumer to
consider the consequences of their consumption.

Business Needs Consumer Education

Commercial interests need to maintain the confidence of consumers. Consumers need

information, but also need education for gaining the greatest benefit from the market, for
controlling their finances and for making rational choices in their consumption. Business should
see improved consumer education not as a threat but as a source of commercial benefit.
Consumers make better choices and because of their higher expectations, there is a positive
effect on competitiveness as companies improve their products and services.

Consumer Protection Laws and Consumer Rights

In the Indian Constitution for protection and promotion of an individual‘s rights, and for the
dignity and welfare of the citizen makes it imperative to provide for the welfare of the individual
as a consumer, a client and a customer. The rights under the Consumer Protection Act, 1986 flow
from the rights enshrined in Articles 14 to 19 of the Constitution of India. The RTI, 2005 which
has opened up governance processes of our country to the common public also has far reaching
implications for consumer protection. The consumer protection policy creates an environment
whereby the clients, customers, and consumers receive satisfaction from the delivery of goods
and services needed by them. Good governance requires efficiency, effectiveness, ethics,
equality, economy, transparency, accountability, empowerment, rationality, impartiality and
participation of citizens. The concern of consumer protection is to ensure fair trade practices;
quality of goods and efficient services with information to the consumer with regard to quality,
quantity, potency, composition and price for their choice of purchase. Thus, proper and effective
implementation of consumer protection law promotes good governance. Education is the most
powerful tool for the progress of the country and is a social and political necessity. Education
helps an individual ‘as a consumer’ in making rational choices and protects him from trade and
business-related exploitation. But more is needed for the effective functioning of the national
market to create an increased level of awareness of consumer rights, and for this consumers have
to be educated about rights and responsibilities through concerted publicity and awareness
campaigns.

Protecting the interests of consumers has, therefore, become one of the paramount concerns of
the Government than ever before. Hence, policies are being designed and legislations enacted to
protect the consumers’ interest and grant them the right to choice, safety, information and
redressal. The Government of India has setup many consumers court at various level such as
District consumer forum for the district level, State consumer forum at the state level and
National Consumer Dispute Redressal Commission for the national level.

The Indian Penal Code, 1860 contains certain provisions which are worth noting in connection
with consumer protection and satisfaction. It provides penalties for offences (i) relating to
weights and measures, (ii) affecting the public health, (iii) concerning counterfeiting the property
mark. It is the most important law in the country, which was enacted in the British days, and
contains the substantive law against crime. Section 264 to 267 of the Indian penal code relate to
the fraudulent use, possessing and sale of false weight and the resulting punishment.
The Indian Contract Act sowed the seeds of consumer protection. The Act deals with the buyer‘s
right to annul agreement made without free consent and to claim damages for the loss and
damage caused by breach of contract. But these contracts should be in writing; otherwise it
would be difficult to prove the exact terms and conditions.

Many other acts were passed by the legislation for the protection of the rights of the consumer
such as Sales of Good Act, 1930, The Agriculture Produce Act,1937, Drugs and Cosmectics Act ,
1940, Indian Standards Institution Act,1952 and many such acts for the welfare of the consumer
of the country.

But all such acts were mainly punitive and preventive in nature. Through these acts and laws the
consumer could not seek any remedy or redressal against the offending trader and the
manufacturer negligence, carelessness by the service provider. Tough through the Monopolies
and Restrictive Trade Practices (MRTP) Act, the consumer can approach the commission in the
case of complain. But in spite of such provision the consumer did not have any effective
mechanism and institutional arrangement for the speedy redressal of their grievances.

But the proper mechanism for the consumer was establish in the year 1986 when the Consumer
Protection Act,1986 . The objective of this act

The purpose of the Act is to provide for the establishment of the Commission:

a. To prevent practices having adverse effect on competition;

b. To promote and sustain competition in markets;

c. To protect the interests of consumers and

d. To ensure freedom of trade carried on by other participants in the markets, in India.

The major focus of the Act is on the following areas:

1. Prohibition of anti competitive agreements;

2. Prohibition against abuse of dominant position;

3. Regulation of combinations;

4. Advocacy of competition policy.

The legislative intention behind this Act is to clear all hurdles in promoting competition among
business units whether of domestic or foreign origin. The Consumer Protection Act of 1986 was
enacted with an objective to provide better protection of the interests of the Consumers, to make
provision for the establishment of Consumer Councils and other authorities for the settlement of
consumer disputes. This is indeed a very unique and highly progressive piece of Social Welfare
Legislation. The provisions of this Act are intended to provide effective and efficient safeguards
to the consumers against various types of exploitations and unfair dealings. Unlike other laws,
which are basically punitive or preventive in nature, the provisions of the Act are compensatory.
It is a matter of great satisfaction that we can legitimately boast that we now have in our country
a statute, which provides more effective protection to the consumers than any corresponding
legislation in force in countries, which are considered to be much more advanced and
industrialised. Consumer Protection Act has been in operation for about 18 years. A number of
deficiencies and shortcoming in respect of its operation have come to light thereby requiring
amendments thrice, still leaving scope for further improvements. Despite all this it is a handy
weapon for consumers to ensure accountability of producers of goods and providers of services.
In the International Conference on Consumer Protection held in Malaysia in 1997, the Indian
Consumer Protection Act was described as one which has set in motion a revolution in the field
of consumer rights, the parallel of which has not been seen anywhere else in the world.

Important Features of the Consumer Protection Act

1. The Act applies to all goods and services unless specifically exempted by the Central
Government.

2. It covers all the sectors – private, public and cooperative.

3. The provisions of the Act are compensatory in nature.

4. It provides adjudicatory authorities, which are simple, speedy and less expensive.

5. It also provides for Consumer Protection Councils at the National, State and District levels.

6. The provisions of this Act are in addition to and not in derogation of the provisions of any
other law for the time being in force.

Importance of Consumer Movement in India:

In business and economic planning the consumer should be held supreme in any economy. It is
his ultimate satisfaction that matters. While addressing a group of businessmen, Gandhiji also
once said, "A customer is the most important visitor on our premises. He is dependent on us. We
are dependent on him. He is not an interruption in our work. He is the purpose of it. He is a part
of it. We are not doing him a favor by serving him. He is doing us a favor by giving us an
opportunity to do so." Gandhi's words place the consumer on a very high pedestal. But the
consumer's high place is only a myth so far as the Indian economy is considered. Indian
consumer is an utterly helpless fellow. He has no say in the quality or nature of goods that are
sent to the market for his consumption. He is a victim of numerous malpractices. He is often
made to buy adulterated or substandard goods. Second hand goods are passed on to him as new.
Clever businessmen, through glossy salesmanship, misleading advertisements and tall claims
about their products, rob the consumer of his hard-earned money. The consumer knows what is
happening to him. But except making a loud, individual kind of protest, which has no effect on
the mammon-worshipping businessmen, there is very little that he can do to check his systematic
exploitation. Since a majority of our consumers, particularly in the rural areas, are illiterate, they
are not able to distinguish between the genuine and the spurious or the good and the bad. It is
mainly these consumers who suffer at the hands of unscrupulous businessmen. Our consumers
also suffer from a total absence of awareness among them. They know nothing about their rights;
they are ignorant of the laws. First of all, the laws on trademarks, essential commodities, drugs,
weights and measures etc., are not very effective. Secondly, the standard of morals in our
country being what it is, the businessmen do not find it difficult to steer clear of laws through
greasing the palms of the inspection staff. Besides, litigation is such a costly and time consuming
affair that no consumer has the courage and patience to throw cudgels on behalf of his ever
suffering community.

The basic rights of a consumer were precisely defined by no less a person than the late
President John F. Kennedy, who articulated what had long been known in advanced countries
and among vigilant, highly educated people. The rights as defined by him are:
(1) The right to safety and to be protected against the marketing of goods which are health
hazards or pose a danger to life itself;
(2) The right to be informed so as to be protected against fraudulent, deceitful or grossly
misleading information, advertising, labeling or other such practices and to be given the facts he
needs to make an informal choice;
(3) The right to choose and to be assured; as far as possible, access to variety of products and
services at competitive prices, and in industries in which free competition is not workable and
Government regulation is substituted to be assured satisfactory quality and service at fair prices;
and
(4) The right to be heard and thus to be assured that consumer interests will receive full and
sympathetic consideration in the formulation of governmental policy and fair and expeditious
treatment in its administrative tribunals.

Consumer Movement in India

Since India has for decades been seller's market where the manufacturer and the trader have the
upper hand and manage to sell whatever is marketed, the awareness of the consumer's basic
rights.
The consumer movement exercises a considerable influence on the socio-economic environment
of business. In a country like India where there is a high percentage of illiteracy among people,
where people are less informed and where critical goods are always in short supply, the
Government has a significant role in safeguarding the interests of consumers by promoting a
climate of fair competition and preventing exploitation of consumers. The consumer movement
has changed it and sellers feel now it is a question of seller beware. The objective of the
consumer movement is to secure the interests of the consumer against all types of unfair trade
practices.

Features of Consumer Movement:

1. It is basically a protest movement.
2. It is a mass movement in the sense that masses are the general
body of consumers.
3. It is generally a non-official movement. Public and voluntary
consumers, organisations initiate the movement.
4. Though it is not a government-sponsored movement, it is
recognised and backed up by the Government.

Consumer Responsibilty