Chapter 5: Consumer Rights (Economics)

Individual consumers often find themselves in a weak position. Producers and sellers are few and powerful, while consumers buy in small amounts and are scattered. Without rules, sellers may exploit them. Rules and regulations are needed to protect consumers.

Examples:

• Underweight and under-measurement: shopkeepers may weigh less than they should (e.g. vegetables, petrol).
• Adulteration: edible oil, ghee, milk and spices may be adulterated.
• Overcharging: products may be sold above the printed MRP.
• Defective goods and false information: a pressure cooker with a faulty safety valve can cause a serious accident; companies may claim false benefits of products in advertisements (e.g. the tobacco industry long hid the harmful effects of smoking).
• Poor after-sales service: a shopkeeper or company may refuse to repair or replace a faulty product within warranty.

Consumers are weak compared with sellers, so rules are needed to prevent cheating such as underweighing, adulteration, overcharging, defective goods and false claims.

Factors: the consumer movement arose as a "social force" out of the need to protect consumers against unethical and unfair trade practices. Rampant food shortages, hoarding, black marketing, and adulteration of food and edible oil gave birth to the organised consumer movement in the 1960s.

Evolution:

• Till the 1970s, consumer organisations were largely engaged in writing articles and holding exhibitions. They formed consumer groups to look into malpractices in ration shops and overcrowding in road passenger transport.
• More recently, India has seen an upsurge in the number of consumer groups.
• The movement succeeded in bringing pressure on business firms and the government to correct unfair business conduct. A major step was the Consumer Protection Act, 1986 (COPRA), which was amended in 2019.
• COPRA led to separate Departments of Consumer Affairs in the central and state governments and consumer commissions at the district, state and national levels.
• Internationally, the UN Guidelines for Consumer Protection (1985) became the foundation of the movement; Consumers International is now an umbrella body of over 200 member organisations from over 100 countries.

Food shortages, hoarding, black marketing and adulteration gave rise to it in the 1960s; it grew from articles and exhibitions to many consumer groups, leading to COPRA (1986, amended 2019) and consumer commissions.

Consumers must be aware of their rights and the correct information about products, so that they are not cheated and can seek redressal if exploited.

• Example 1: a consumer who checks the expiry date, MRP and ISI or Agmark mark before buying medicine, food or electrical goods avoids buying expired medicine, paying more than the MRP, or using unsafe appliances.
• Example 2: Reji Mathew was crippled for life because of improper anaesthesia during an operation in a private clinic. His father, aware of his rights, filed a complaint for compensation in the State Commission; when it was dismissed, he appealed to the National Commission, which held the hospital responsible for medical negligence and directed it to pay compensation. Similarly, a consumer who knows about the District Commission can file a case when a shop refuses to repair a faulty product under warranty.

Aware consumers check the expiry date, MRP and quality marks, so they are not cheated, and know how to approach consumer commissions (as Reji Mathew's parents did) to get justice.

• Limited information about products (price, quality, composition, safety)
• Limited supply of goods, which lets sellers charge more (hoarding)
• Limited competition: a few big producers control the market (monopolies)
• Low literacy and lack of awareness among consumers about their rights
• False or misleading advertisements
• Weak enforcement of rules, and consumers' reluctance to complain because redressal is slow or costly

Lack of information, limited supply, limited competition, low literacy and awareness, misleading advertisements and weak enforcement of rules.

• Consumers were being exploited in many ways (underweighing, adulteration, poor quality, overcharging), and there was no simple legal system for them to get justice. Going to ordinary courts was expensive and time-consuming.
• The consumer movement pressed the government to act. COPRA was enacted to protect the rights and interests of consumers.
• It set up a simple, quick and inexpensive three-tier quasi-judicial machinery (District, State and National Commissions) for redressal of consumer disputes, where consumers can file cases themselves without hiring a lawyer.
• It recognised consumer rights and led to the creation of Departments of Consumer Affairs. It was amended in 2019 to make it stronger.

To protect consumers from exploitation and give them a simple, quick and cheap way of getting justice through consumer commissions.

• Check the quality of the product and look for ISI, Agmark or Hallmark certification.
• Check the MRP, expiry date, batch number and other details on the pack.
• Ask for a cash memo (bill) for every purchase, and a warranty or guarantee card where applicable.
• Pay no more than the MRP; bargain where possible.
• Do not get misled by advertisements or attractive offers; compare products before buying.
• Complain about defective goods or poor service to the shop, and if needed to the consumer commission.
• Be aware of your rights and help form or join consumer awareness groups.

Check quality marks, MRP and expiry date, insist on a bill and warranty card, don't pay above MRP, avoid being misled by ads, and complain about defective goods.

• Honey: look for the Agmark logo, which certifies the quality of agricultural products (honey, ghee, spices, edible oils, pulses).
• Biscuits: look for the FSSAI licence number (and the ISI mark where applicable), which shows the food meets safety standards; also check the +F logo if it is fortified.

These marks assure that the products meet the quality and safety standards set by the certifying organisations. Also check the MRP, date of manufacture, expiry date and list of ingredients.

Agmark on the honey and the FSSAI licence (or ISI mark) on the biscuits, because they assure quality and safety.

• The Consumer Protection Act, 1986 (COPRA), amended in 2019, gives consumers the right to seek redressal through a three-tier quasi-judicial machinery: District Commission (up to Rs 1 crore), State Commission (Rs 1 crore to Rs 10 crore) and National Commission (above Rs 10 crore). If a case is dismissed at the district level, the consumer can appeal to the State and then the National Commission.
• Separate Departments of Consumer Affairs have been set up in the central and state governments, which spread awareness (e.g. "Jago Grahak Jago" campaigns).
• The Right to Information Act (October 2005) ensures citizens get all information about the functions of government departments.
• Standards and certification by the Bureau of Indian Standards (ISI), Agmark and Hallmark, made mandatory for products affecting health and safety (LPG cylinders, food colours and additives, cement, packaged drinking water).
• Laws against adulteration, underweighing and black marketing.

COPRA (1986, amended 2019) with district, state and national consumer commissions, Departments of Consumer Affairs, the RTI Act (2005), and compulsory quality certification for products affecting health and safety.

• Right to safety: consumers have the right to be protected against the marketing of goods and services that are hazardous to life and property (e.g. electrical appliances, pressure cookers, gas cylinders must be safe).
• Right to be informed: consumers have the right to know the particulars of goods, such as ingredients, price, batch number, date of manufacture, expiry date and the address of the manufacturer. They can complain and ask for compensation if the product proves defective.
• Right to choose: a consumer has the right to choose among a variety of goods and services at competitive prices; no one can force them to buy something they do not want (e.g. a gas dealer cannot force you to buy a stove with a new connection).
• Right to seek redressal: consumers have the right to seek redressal against unfair trade practices and exploitation, and to get compensation depending on the degree of damage.
• Right to represent: consumers have the right to be heard and represented in consumer courts and in policy-making bodies.
• Right to consumer education: consumers have the right to acquire the knowledge and skills to be informed consumers.

The rights to safety, to be informed, to choose, to seek redressal, to represent, and to consumer education, explained above.

• By forming consumer groups and organisations (consumer forums or consumer protection councils), which guide consumers on how to file cases, and represent them in the commissions.
• By joining campaigns and protests against unfair practices, and boycotting products or shops that cheat consumers.
• By spreading awareness through articles, posters, the media, social media and exhibitions.
• By pressing the government for better laws and stronger enforcement.

By forming and joining consumer organisations, campaigning and boycotting unfair sellers, and spreading awareness.

Progress:

• From the 1960s, the movement grew into a social force; there are now more than 2,000 consumer groups in India, of which about 50–60 are well organised and recognised for their work.
• It led to COPRA (1986), amended in 2019, consumer commissions at three levels, and Departments of Consumer Affairs that spread awareness.
• Consumers have won many cases (like Reji Mathew's), and certification such as ISI, Agmark and Hallmark has spread.
• The 2019 amendment strengthened consumers further: buying through the internet is now included, manufacturers and service providers can be held responsible and penalised, and settlement of disputes through mediation is encouraged at all three tiers.
• National Consumers' Day is observed on 24 December, the day COPRA was enacted.

Shortcomings:

• The redressal process is becoming cumbersome, expensive and time-consuming: consumers often have to engage lawyers, attend many hearings, and cases take years.
• Many consumers, especially in rural areas, are not aware of their rights; cash memos are often not issued, so evidence is hard to gather.
• Enforcement of laws protecting workers and consumers is weak, especially in the unorganised sector; existing laws are not always clear on compensation for defective products.

So the movement has made good progress, but it has a long way to go. Consumers need to be more aware and organised, and the redressal system must become simpler and quicker.

The movement has grown, led to COPRA and consumer commissions and raised awareness, but redressal is still slow and costly, awareness is low and enforcement is weak.

(i)–(e), (ii)–(c), (iii)–(a), (iv)–(b), (v)–(g), (vi)–(f), (vii)–(d)

1. False. COPRA applies to both goods and services.
2. False. India is one of the few countries that have exclusive authorities for consumer redressal (the statement wrongly says "many").
3. False. The case is filed in the District, State or National Commission depending on the value of the claim.
4. False. Consumers can approach the commissions for claims of any value, even small ones.
5. True.
6. False. It is often cumbersome, expensive and time-consuming.
7. True.

(i) False (ii) False (iii) False (iv) False (v) True (vi) False (vii) True

Poster: "JAGO GRAHAK JAGO – Know Your Rights"

Add slogans such as "Always ask for a bill", "An alert consumer is a safe consumer" and "Check for ISI, Agmark and Hallmark", with the National Consumer Helpline number from the government's consumer affairs website.

A poster listing the six consumer rights with simple messages and slogans, as shown.

To
The President
District Consumer Disputes Redressal Commission
[District name]

Date: [date]

Subject: Complaint against [name of dealer/shop] for a defective colour television

Sir/Madam,

I, Mrs Krishna, resident of [address], bought a colour television (model [model], serial no. [number]) from [dealer/shop name and address] on [date] for Rs [amount], with a warranty of six months. A copy of the cash memo and warranty card is enclosed.

The television stopped working after three months. When I complained to the dealer, they sent an engineer who repaired it, but the set continues to give trouble. Since then I have made several complaints to the dealer on [dates], but I have received no reply, and the defect has not been removed, although the television is still under warranty.

I have suffered financial loss and mental harassment. I therefore request the Commission to direct the dealer to replace the television with a new one or refund the full price, and to pay suitable compensation for the inconvenience caused.

Thanking you,

Yours faithfully,
Mrs Krishna
[Address, phone number]

Enclosures: copy of the cash memo, warranty card, and copies of the complaints made to the dealer.

A complaint letter to the District Consumer Commission giving the purchase details, the defect within warranty and the dealer's failure to respond, and asking for replacement or refund with compensation, with copies of the bill and warranty card.

Plan:

• Form a consumer club with a teacher in charge; choose a president, secretary and members from different classes.
• Hold monthly workshops: check whether the school canteen and nearby shops charge more than the MRP, sell expired products, give bills, and maintain hygiene; check weights and measures.
• Do role plays of a consumer filing a complaint in a consumer commission.
• Make posters and slogans: "An alert consumer is a safe consumer", "Buyers, beware", "No bill, no deal", "Check the expiry date before you pay".
• Celebrate National Consumers' Day (24 December) and World Consumer Rights Day (15 March) with talks and quizzes.

Form a consumer club that checks prices, bills, expiry dates and hygiene in the canteen and local shops, holds role plays and makes awareness posters with slogans.