WHO IS A CONSUMER....................................................................................................................
WHY DO WE NEED CONSUMER PROTECTION..................................................................................2
INTRODUCTION..............................................................................................................................2
VARIOUS CAUSES OF CONSUMER EXPLOITATION.........................................................................................2
CONSUMER MOVEMENT................................................................................................................ 3
INTRODUCTION..............................................................................................................................3
CONSUMER MOVEMENT IN INDIA..................................................................................................3
WHAT ARE CONSUMER RIGHTS/PROTECTION................................................................................ 4
INTRODUCTION..............................................................................................................................4
CONSUMER RIGHTS BY THE MINISTRY OF CONSUMER AFFAIRS......................................................4
RIGHT TO SAFETY.......................................................................................................................................4
RIGHT TO BE INFORMED..............................................................................................................................4
RIGHT TO CHOOSE......................................................................................................................................5
RIGHT TO BE HEARD...................................................................................................................................5
RIGHT TO SEEK REDRESSAL...........................................................................................................................5
RIGHT TO CONSUMER EDUCATION................................................................................................................5
OTHER GUIDELINES BY THE GOVERNMENT..................................................................................... 6
1> MISLEADING ADVRETISEMENTS..............................................................................................6
A CASE STUDY................................................................................................................................6
2> CONSUMER HELPLINES............................................................................................................7
3> GRAHAK SUVIDHA KENDRA.....................................................................................................7
A CASE STUDY................................................................................................................................ 7
NATIONAL INSURANCE COMPANY LTD. VS. HINDUSTAN SAFETY GLASS WORKS LTD...7
WORLDWIDE CONSUMERISM......................................................................................................... 7
UNITED NATIONS GUIDELINES........................................................................................................ 7
RESPONSIBILITY OF CITIZENS.......................................................................................................... 8
CONCLUSION.................................................................................................................................. 8
WHO IS A CONSUMER
A consumer is a person or a group who intends to order, or use purchased goods, products,
or services primarily for personal, social, family, household and similar needs, who is not
directly related to entrepreneurial or business activities. The term most commonly refers to a
person who purchases goods and services for personal use. Consumers and customers are
often used interchangeably which is a misconception.
A "consumer" is the person who actually uses a product or service, while a
"customer" is the person who purchases that product or
service; essentially, a consumer is the end-user, and a customer is the
buyer, meaning a customer can be a consumer but not always, like when a
parent buys a toy for their child - the parent is the customer, and the child is
the consumer.
WHY DO WE NEED CONSUMER PROTECTION
INTRODUCTION
Consumer protection is the practice of safeguarding buyers of goods and services, and the
public, against unfair practices in the marketplace.
Consumer protection safeguards the well-being and interests of consumers through education,
mobilization and representation. Consumer protection ensures that consumers make well-
informed decisions about their choices and have access to effective redress mechanisms.
Businesses operate to maximize their profit in this fast-paced, dynamic world.
They take advantage of consumers through various forms of
deception. To persuade customers to buy a product,
manufacturers make deceptive claims about its capabilities.
Various causes of consumer exploitation
Information shortage
The lack of information like the ingredients used, the manufacture
date, the product’s dangers and consequences, and so on can be a
common cause of consumer exploitation.
Massive Price
Sellers with a monopoly on a product and the power to adjust the price
take undue advantage by charging exorbitant rates, leaving consumers
with no choice.
Adulteration
It is one of the most heinous examples of consumer exploitation. It
results in monetary loss and harms a person’s health. Unwanted
components are incorporated into meals, causing injury to the body
and developing many diseases.
1. Cybersecurity: With the rise of online shopping and digital transactions, consumers
are increasingly at risk of identity theft and data breaches
2.
3. Deceptive Marketing: Consumers are bombarded with advertisements and
promotions, making it difficult to discern between genuine products and misleading
claims.
4. Information Overload: The abundance of information available online can
overwhelm consumers, making it challenging to make informed decisions about
purchases.
These challenges highlight the importance of consumer awareness, education, and
advocacy in navigating the modern marketplace.
CONSUMER MOVEMENT
INTRODUCTION
A consumer movement is a social movement that aims to protect the rights and interests of
consumers.
It involves individuals and organizations advocating for fair practices, safe products, accurate
information, and ethical business conduct.
CONSUMER MOVEMENT IN INDIA
PRE- INDEPENDENCE [VEDIC AGE]
In ancient India, Manu Smriti laid down the few fundamental core principles to safeguard
consumer interest and a code of conduct for the traders regarding adulteration, short weight,
fixed profits.
The Arthashastra by Kautilya describes the role of the state in regulating trade and preventing crimes
against consumers. It also established ethical principles, trade regulations, and penalties for offenses
against buyers.
POST INDEPENDENCE [1960s]
Post-Independence was a period where India could focus on developing its own laws for the
betterment of the country. Chain of consumer coop stores were opened with the government
support including Super Bazaars to control prices and supply.
The Consumer Guidance Society of India (CGSI), 1966 played a crucial role in educating
consumers about their rights and responsibilities. Voluntary Consumer Associations were created
across the country such as Mumbai Grahak Panchayat
TOWARDS 20th CENTURY
In the year 1978, Consumer Education Research Centre was set-up. Its main purpose was to
protect and promote the interest of the consumers. Certain exhibitions were started to educate
the consumers and Consumer Interest Litigation was promoted.
Even the United Nations published a set of guidelines for consumer protection in the year 1985.
It was finally in the year 1986 when Consumer Protection Act gave boost to concept of
Consumer Rights in India
WHAT ARE CONSUMER RIGHTS/PROTECTION
INTRODUCTION
Consumer rights are the legal entitlements given to consumers to ensure their
protection and fair treatment in the marketplace. These rights ensure that
consumers are not exploited and can make informed decisions when purchasing
goods or services.
A series of provisions for providing protection to consumers such as the Indian
Contract Act 1872, Sale of Goods Act 1930, Standards of Weight and Measures Act
1976, etc. have been in practice since decades. These measures provided some
relief to the consumer but there was scope for further reform to address adulterated
and sub-standard goods. This is what the Consumer Protection Act of 1986 sought
to resolve. it still had some drawbacks as well:
The Consumer Protection Act of 2019 was an improvement over the 1986 version of the
same.
Further, in order to streamline the complaint filing process, the Department of Consumer
Affairs has introduced the initiative of ‘eDaakhil’ on the occasion of World Consumer Rights
Day 15th March 2022, where consumers can easily register their complaints through an
online platform.
CONSUMER RIGHTS BY THE MINISTRY OF CONSUMER AFFAIRS
Right to Safety
Means right to be protected against the marketing of goods and services, which are hazardous to life
and property
They should preferably purchase quality marked products such as ISI, AGMARK, etc. (Trademarks)
Right to be informed
Means right to be informed about the quality, quantity, potency, purity, standard and price of goods
so as to protect the consumer against unfair trade practices. Like Ingredients, Nutrition table,
Reccomonded dietry allowance ec.
This will enable him to act wisely and responsibly and also enable him to desist from falling prey to
high pressure selling techniques.
(Labels)
Right to choose
Means right to be assured, wherever possible of access to variety of goods and services at
competitive price. In case of monopolies, it means right to be assured of satisfactory quality and
service at a fair price. It also includes right to basic goods and [Link] right can be better
exercised in a competitive market where a variety of goods are available at competitive prices
Right to be Heard
Means that consumer's interests will receive due consideration at appropriate forums. It also
includes right to be represented in various forums formed to consider the consumer's welfare.
The Consumers should form non-political and non-commercial consumer organizations which can be
given representation in various committees formed by the Government and other bodies in matters
relating to consumers.
Right to seek redressal
Means right to seek redressal against unfair trade practices or unscrupulous exploitation of
consumers. It also includes right to fair settlement of the genuine grievances of the consumer.
They can also take the help of consumer organisations in seeking redressal of their grievances.
Right to Consumer Education
means the right to acquire the knowledge and skill to be an informed consumer throughout life.
Ignorance of consumers, particularly of rural consumers, is mainly responsible for their exploitation.
They should know their rights and must exercise them. Only then real consumer protection can be
achieved with success.
TRADEMARKS
1>
2>
3> ISI mark is a standardization mark issued by the Bureau of Indian Standards (BIS) to
certify that the products conform to the minimum quality standards.
4> Hallmarking of Gold Jewellery is a purity certification scheme of BIS launched in the year
2000
5> AGMARK is a certification mark on agricultural products in India, assuring that they
conform to a set of standards approved by the government.
6> The Government of India has made it mandatory for all packages of processed food
items to bear the vegetarian or non-vegetarian mark.
7> ISO stands for International Organization for Standardization. The objective of ISO is to
make common standards of products and services at international level, which
ultimately facilitate foreign trade.
8> Silk Mark is a quality assurance label for pure silk.
9> Wool mark is a certification mark used on textile products as an assurance that the
product is made of 100% pure new wool
10> Handloom Mark serve as a guarantee for the buyer that the product being
purchased is genuinely hand woven from India
11> ECO mark categorizes the product as environment friendly. Signifies that the
product which carries it does the least damage to the environment.
12> BEE star is a label showing how much electricity the appliance will consume under
certain conditions. { BEE- Bureau of Energy Efficiency
13> FSSAI ` it signifies that the product is hygienic and approved.
14> BIS issued by the Bureau of Indian Standards (BIS) ensure the quality, safety
and reliability of products in accordance with Indian Standards (IS).
Require that the labels contain the following information:
Name, trade name, or description
Name of ingredients used in the product in descending order of
their composition by weight or volume
Name and complete address of manufacturer/packer, importer, and
country of origin of the imported food (if the food article is
manufactured outside India but packed in India)
Net weight, number, or volume of contents
Distinctive batch, lot, or code number
Month and year of manufacture and packaging
Month and year by which the product is best consumed, and
Maximum retail price
. Every FBO in the country must obtain a 14-digit registration or licence number. The FSSAI
Logo and licence number shall be displayed on the label of food package in contrast colour
to the background.
OTHER GUIDELINES BY THE GOVERNMENT
1> MISLEADING ADVRETISEMENTS-Advertising Standards Council of India
(ASCI) is a self-regulatory voluntary organization of the advertising industry.
A CASE STUDY: THE PATANJALI CONTEMPT CASE
CASE-The Indian Medical Association(IMA) filed a petition against the founders of Patanjali- Baba Ramdev and
Acharya Balkrishna – for publishing misleading advertisements attacking allopathy, claiming that its ayurvedic
medicines could completely cure diseases and under-mining scientific medicines.
VERDICT- The ads were in connection with 14 products whose licences have been suspended by the
Uttarakhand government for violating provisions of the Drugs & Other Magical Remedies Act, 1954.
The supreme court had ordered Ptanjali to discontinue the ads that had been identified as misleading
However, the contempt charges against the company were dropped later and IMA was asked to give a public
apology to the founders in the newspaper.
CONCLUSION- Money and power continue to influence the process of delivering justice to the consumers.
2> CONSUMER HELPLINES - National Consumer Helpline provides advice,
information and guidance to empower consumers and persuade businesses to reorient
their policy and management systems to address consumer concerns and grievances
adopting global standards. A consumer from any part of the country can call National
Consumer Helpline at a National Toll Free No-1800-11-4000 to seek help.
3> GRAHAK SUVIDHA KENDRA- the Government has launched Grahak Suvidha
Kendra as a One Stop Centre catering to a spectrum of services for consumer welfare in six
locations in the Country. It will provide service in local language, English and Hindi. It will
have trained personnel, experienced in counselling, drafting complaints, providing
information.
4> Jago Grahak Jago ( transl. Wake up Customer Wake up) is
a consumer awareness program launched in 2005 by the
Ministry of Consumer-Government of India. Under this
scheme, various channels were created to spread
awareness about consumer rights and to put an end to
malpractices by merchants.
A CASE STUDY
National Insurance Company Ltd. Vs. Hindustan Safety Glass Works
Ltd.
Facts of the Case: Hindustan Safety Glass Works Ltd. filed a
complaint against the National Insurance Company for denying
compensation for damage caused by heavy rain. The insurance
company denied relief based on a policy condition stating that
claims must be made within 12 months of the event. The insured
approached the National Commission under the Consumer
Protection Act, 1986.
Judgment: The National Commission held that the claim was
actionable and that the goods were insured at the time of the
incident. The insurance company was ordered to pay Rs.
21,05,803.89 with 9% interest per annum.
WORLDWIDE CONSUMERISM
Donoghue v Stevenson [1932] AC 562 was a landmark court decision in Scots delict law and English
tort law by the House of Lords. It laid the foundation of the modern law of negligence in common
law jurisdictions worldwide, as well as in Scotland, establishing general principles of the duty of care.
[5]
Also known as the "Paisley Snail" or "Snail in the Bottle" case, the case involved Mrs May Donoghue
drinking a bottle of ginger beer in a café in Paisley, Renfrewshire. Unknown to her or anybody else, a
decomposed snail was in the bottle. She fell ill, and subsequently sued the ginger beer
manufacturer, Mr Stevenson. The House of Lords held that the manufacturer owed a duty of care to
her.
UNITED NATIONS GUIDELINES
The General Assembly of the United Nations passed a Resolution on April 9, 1985 adopting a set of
guidelines for consumer protection to persuade the member countries to adopt policies and laws for
better protection of the interests of the consumers. These guidelines provided a set of basic
consumer protection objectives upon which governments have agreed, thereby serving as a policy
framework for implementation at the national level. Some of the guidelines'
recommendations include:
Making information easily accessible, especially key terms and conditions
Developing programs to help consumers understand risks and make informed
decisions
Protecting consumers' privacy through appropriate controls, security, and consent
mechanisms
Creating complaints-handling mechanisms that are fair, transparent, and inexpensive
RESPONSIBILITY OF CITIZENS
Responsibility to be aware: A consumer must consider the
product’s safety and quality before purchasing a product or
service.
Responsibility to think independently: Consumers should be
concerned about what they want and need and make their
own decisions.
Responsibility to speak out: Buyers should not be afraid to air
their frustrations and tell sellers exactly what they want.
Responsibility to complain: The consumer’s responsibility is to
voice and file a complaint about goods or services truthfully
and fairly.
Responsibility to be an ethical consumer: They should be
honest and not indulge in dishonest behaviour.
Jago grahak jago
Don’t let consumers get consumed
CONCLUSION
Consumer rights and protections are essential in the
modern marketplace, yet many people remain unaware or
unable to exercise their rights.
With knowledge and collective action, people can hold
companies accountable while guiding the marketplace
toward greater care for human well-being. Raising
consumer awareness must become a priority through
education campaigns, advocacy groups, government
agencies, and media. With increased awareness, people
can make informed, empowered choices that drive
positive marketplace and social change.