consumer protection : new initiatives

santha balakrishnan

Friday, March 11, 2005

Consumer Protection in India received a shot in the arm in recent times with the Department of Consumer Affairs, introducing new schemes like setting up of Consumer Clubs in schools and the launching of Jagriti Shivir Yojana for spreading consumer awareness. The setting up of a National Consumer Helpline in Delhi University, to be run by the students and faculty with financial assistance from the Department is a major step in this direction. The toll free helpline, set up at a total cost of Rs. 3.12 crore would be inaugurated on the World Consumer Rights Day on March 15, 2005. Another step taken by the Ministry of Consumer Affairs, Food and Public Distribution for consumer welfare is the introduction of a scheme for involving Research Institutions, Universities and Colleges in consumer protection. Under the scheme, the Indian Institute of Public Administration (IIPA), New Delhi has been appointed as a consultant to the Department of Consumer Affairs for three years.

One of the most important milestones in the area of consumer protection in India is the enactment of Consumer Protection Act, 1986 and the Consumer Protection (Amendment) Act, 2002. The concept of consumer movement in India dates back to centuries, as there are references to protection of consumer interest against exploitation by trade and industry in Kautilya’s Arthashastra. However, there was no organized and systematic movement actually safeguarding the interest of consumers prior to the enactment of the Consumer Protection Act. Even though different parts of India had different levels of awareness about consumer protection, it was felt that the level of awareness of the consumer about his right was generally low. The problem became more acute with increase in consumerism and opening up of the economy.

The Consumer Protection Act applies to all goods and services and covers all persons and all sectors; private, public or cooperative. The Act enshrines: Right to be protected against marketing goods and providing services, which are hazardous to life and property; Right to be informed about the quality, quantity, potency, purity, standard and price of goods or services so as to protect the consumer against unfair trade practices; Right to be assured, wherever possible, access to a variety of goods and services at competitive prices; Right to be heard and to be assured that consumers’ interests will receive due consideration at appropriate fora; Right to seek redressal against unfair trade practices or unscrupulous exploitation of consumers; and Right to consumer education.

To provide simple, speedy and inexpensive redressal to consumer grievances under the Act, a 3-tier quasi-judicial machinery popularly known as the consumer courts have been set up at national, state and district levels. The National Consumer Disputes Redressal Commission (NCDRC) referred to as National Commission is the apex consumer redressal forum and is located in New Delhi. Each state has a Consumer Disputes Redressal Commission known as the State Commission. The National Commission and the State Commissions can constitute a bench with one or more members and can also hold circuit benches for deciding consumer cases. Similarly, every district in the country has a Consumer Dispute Redressal Forum known as the District Forum. There is a nominal court fee required to be paid for filing a complaint before a District Forum, the State Commission or the National Commission by an aggrieved consumer. There is a provision for appeals in higher forums and an appeal against the orders of the National Commission could be filed with Supreme Court within a period of 30 days from the date of the order.

There are at present 582 district forums at district level, 35 State Commissions at State level and one National Commission in the capital to render inexpensive and quick redressal to consumer grievances. Out of nearly 24 lakh cases filed before the Consumer Disputes Redressal Agencies since inception, 84 per cent have been disposed of. The success of consumer movement depends upon the level of consumer awareness generated among the masses about their rights and responsibilities. It has been observed that where literacy rate is high and social awareness is better, the consumer can not be easily exploited. Being a nodal department for Consumer Protection, the Department of Consumer Affairs has taken several steps to strengthen consumer movement in the country and protect consumer interest by involving State Governments, Voluntary Consumer Organisations, and Consumer Activists etc.

World Consumer Rights Day is celebrated every year on March 15 globally with different themes and this year’s theme is “crusade against adulteration, counterfeiting and spurious products”. On a proposal mooted by the Department, December 24 every year has been declared as National Consumer Day, since the year 2000 keeping in view that on that day the Consumer Protection Act, 1986 had received the assent of the President. To encourage Voluntary Consumer Organizations (VCOs) women and youth to take interest in consumer awareness especially in rural areas, the Department has instituted National Awards for Consumer Protection. In 1991 the Centre has set up a Consumer Welfare Fund with the objective of providing financial assistance to VCOs, NGOs, State Governments etc. for promoting and protecting the welfare of the consumer and to generate consumer awareness besides strengthening consumer movement in the country particularly in rural areas. With the objective to promote consumer welfare further, an apex body known as Central Consumer Protection Council (CCPC) is functioning at the Centre with the Minister of Consumer Affairs as Chairman. The Council has as representatives Ministers of Consumer Affairs of all State Governments/UT Administrations, Ministries of the Central Government; autonomous bodies, VCOs, consumer activists, representatives of women, farmers, trade and industry and also consumer activists.

Formulation of more and more standards for goods and services both mandatory and voluntary, enforcement of standards of weights and measures and all other consumer protection measures being taken by different wings of the Government like introduction of Citizen Charters; indicate growing assertion of consumers in protecting their rights. Consequent upon the 50th National Development Council meeting, Planning Commission has identified “Evolution of a new paradigm for consumer protection including a National Action Plan for Consumer Awareness and Redressal and Enforcement of Consumer Protection Act” as a priority agenda for action and underlined the need for creating a National Action Plan. The National Common Minimum Programme also wanted to build a new India free from exploitation and accordingly a National Action Plan has been drawn for the Central and State Governments to pursue.

The country now has an exclusive special law to protect the interest of the consumer with a foolproof redressal mechanism in case of defective goods and unsatisfactory services. A number of initiatives have been taken for the creation of consumer awareness through various agencies. Hence the welfare of consumers now remains in their own hands. If the consumers are responsible, vigilant and are able to assert their rights and responsibilities, resist/reject substandard goods/services wherever required and do not hesitate to seek justice through consumer courts if needed, the manufacturers, traders and service providers cannot afford to take them for granted while selling a product or rendering service on payment or to adopt any unfair trade practice. An alert consumer aware of his rights and responsibilities not only can protect himself but can also make consumer sovereignty a reality.



*Information Officer, PIB, Delhi