CHAPTER

3
CONSUMER M0VEMENT ININDIA

LEARNING OUTCOME

Concept of Consumerism, Consumer Organisations: Formation, functioning, and their role in

consumer protection. Recent Developments in consumer protection in India

3.1 CONCEPT OF CONSUMERISM

In the olden days the principle of Caveat emptor' which meant 'let the buyer beware'
governed the relationship between the sellers and the buyers. With the openingup of the
markets and globalization of goods and services the maxim no more holds true. Thus, with
manufacturing, sales and marketing becoming more organized the principle of Caveat
venditor ie., 'let the seller beware' holds true. With the rapid development of digital
technologies and the increasing penetration of e-business, smart phones, cloud and internet
there is a change in how the Indian consumners are buying products. Increasing internet and
mobile penetration, growing acceptability of digital payments and favourable demographics
have provided the unique opportunity for digital marketing companies to connect with
Indian consumers. But shopping online sometimes poses problems related to cross-border
transactions, risks of poor quality and unsafeproducts, predatory prices, exploitative and
unfair trade practices. By the click of a mouse consumers can purchase products anywhere
in the World, it is necessary that businesses are careful and do not exploit or mislead and
dupe them.
Consumerism or consumer movement is a social movement. It refers to the collective power
of consumers to take a country forward with respect to awareness, education and development.
Consumerism attempts to improve the quality of living of the people by enhancing the
economic well-being and bargaining power of consumers. According to McMillan dictionary,
"Consumerism is concerned with protecting consumers from all organisations with
which there is exchanged relationship. It encompasses the set of activities of government,
business, independent organisations and concerned consumers that are designed to
protect the rights of consumers". The Chamber's dictionary defines "Consumerism as
the protection of the interests of buyers of goods and services against defective or
dangerous goods".
 Customer Cure
Consumer Afairs andl
government agencies
for
movementsellers." Consumerism or
social instead of
*"Consumerism is a relation to buycr's market
According to Philip Kotler, in consumer rights.
rights and powers to be a their
to improve the buyer's market about environment
directing the consumers wvithin the
consumer movement is basically the force economic
market and empowering is a social moral and
being a sellers' "C
Consumerism exerting legal,
protection
movement is
According to Cravens and Hills, consumer by consumer
designed to aid and protect the
idea
behind the
pressure on business". The basic
of consumers.
protection of the rights Developments for the first
International consumers rights
3.1.1 Consumer Protection: who
declared the 1962 and called for the right
Kennedy w March consumers.
President John F Congress on 15h right to be heard forDesigned-In
US
It was the message to the American the
choose and The
time in his the right to Unsafe at Any Speed:
manufacturers for lacking
safety, information, a book
titled
accusedthe car money on
to product Nader published
where he reluctance to spend was
Ralph resistance and change and a new law
In 1965 of the American Automobile their
Dangers belts, and up a
features such as seat through his book brought
the safety safety. Ralph Nader the World
War T
Improving safety. momentum after UR
of auto Labour Party in
designed in the area movement began
to gain
1955 the
organisations. In case for
Britain the
consumer
women was argued as the
It Protection
n oreatvoluntary action taken by"Battle for the Consumer". Consumer
through titled consumer's council. The a wide
with a pamphlet
setting up of extensive debate on it. It is
came out the importance to
ofgoods alsoBritish Parliament after an and of
quality marketing
passed by the crinminal liability
Act, 1987 was legislation., creating both
civil and
piece of France
ranging
industry and consumers'. Germany, Denmark, Switzerland,
significant
consumer movement started in Consumerprotection received
1957 Belgium. Organisation of
From 1947 to Canada, and International
Hungary, Italy, Australia. Later, the global
consumer
Japan, Kenya, Federal and State levels in (CI) coordinated
attention both at presently Consumers International of consumer groups and
organization
Consumers' Union independent., non profit the International Organization
an
movement. CI isorganizations (NGOs). CI, originally called consumers worldwide.
unify the voices of
nongovernmental founded in 1960 to consumer moyement to help protect ad
Unions, was
of Consumers build a powerful international
CI's mission is "to
empower consumers everywhere."
Nations Guidetns
the implementation of theUnited ue
devise, andcurrently supports,
the United Nations in 1985 andnamedby
CThelped Protection, which was adopted
by
for Consumer expanded on the four consumer rights andadded
guidelines Americans,
revised in 2015. These UN 1962 Consumer Bill of
to
Rights for education,the rightthe
President John F. Kennedy in his the right to consumer incorporated
in
to redress, recognised
four more rights, viz, the right were
environment and the right to basic needs. These rights of India also
healthy Rights. The Government
United Nation's Charter of Consumer
these rights later.
 ndia
Consumer Afovemctin 3.3

The consumer Imovement exercises a considerable influence on the socio-economic

environment of business. In acountry 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 Govenment has a significant role in safeguarding the interests of consumers by
promoting a climate of fair competition and preventing exploitation of consumers.

3.1.2 Consumer Movement in India

India has an old history of consumer protection. Consumer protection was part of its
ancient culture and formed the core of its political administration. Kautilya's 'Arthasasthra'
was the basic law of ancient India and the same was strengthened with provisions to protect
consumers. Sale of commodities was organized in such a way that general public was not
put to any trouble. If high profits put general public in trouble, then that trade activity was
stopped immediately. For traders, profit limit was fixed. Even for services timely response
was prescribed; e.g. for architects, carpenters, tailors, washer men, rules for the protection
of consumer interest were given. Ancient literature also mentions that in India there were
regulators who supervised weights and measures. For shortfall in weighing or measuring,
sellers were fined heavily. Weights and measures used in trade were manufactured only by
the official agency responsible for standardization and inspected every four months. Sellers
passing off inferior products as superior were fined eight times the value of articles thus
sold. For adulterated things, the seller was not only fined but also compelled to make
good the loss.
After Independence from colonial rule in 1947 Indian economic policy was based on
giving protection to domestic industries and not opening of domestic markets for foreign
competition. In India, the consumer movement as a 'social force' began with the necessity
of protecting and promoting the interests of consumers against unfair trade practices which
was very different from how the consumer movement started in Western countries. In
western countries, consumer movement was the result of post - industrialization and affluence
of goods and services.
The basic reasons for the birth of the consumer movement in India are:
(a) rising
Rampant food shortages, hoarding, black marketing, adulteration of food and edible oil,
prices brought the consumer movement in an organised form, in the 1960s. The
problem became particularly acute during the time of Indo-China war of 1962 and
Indo-Pak war of 1965.
(b) Further lack of product choices due to poor development in technology and growing
inflation in 1970's which lead to consumer unrest. It is believed that women in different
states, especially Mumbai came together and raised their voice against the rise of prices
of essential commodities.

C) The consumer movement since then put pressure on business firms, as well as the
government to correct business conduct that caused consumer detriment.
) Amajor step taken in 1986 by the Indian government was the enactment of the Consumer
Protection Act 1986.
 Customer Care
and
Consunner Aflairs
3.4

3.2 CONSUMER ORGANISATIONS constitutions

*°Law and
remarked that and constant effort
Nehru energy
Our first Prime Minister Pandit Jawahar Lal enthusiasm,
theIndian
Constitution
great. It is the III of
do not by themselves make a country 19, Part interests. Every
per Article their groupassociations, and
of the people that make it a great nation". As or unions to further
all citizens have the right to form association consumers to form
combine with other Consunmer organizations
who is also a consumer can consumers. Thus, service
citizen
problems of the companies or dealers or
exercise this right to work solving consumers from misleading advertising, and
that seek to protect pricing, methods such as,
are advocacy groups products, predatory use of
providers abuse regarding unsafe organizations make
Consuner services. They engage n
protect the rights of consumers. products or consumer watchdogs.
of
campaigning or lobbying and testing up as more general
protests, themselves of products
single-issue advocacy or they may set about independent surveys or test
and also
prOvide consumers useful information do advocacy, give them guidance
Ihey problems of consumers,
to
or services, address
consumer forum on behalf of the
consumners.
them in
file cases in the
and organise them by help1ng
consumer rights and redressal
rights
aware about their
They make consumers keeping them informed about
countries, have been
solving their problems by standards on mandatory labelling, in various organizations
mechanism. The current organisations. Thus, the aim of consumer
consumer unethical and
shaped by past lobbying by consumer rights. They also keep a check on the
enforce attempt
is toestablish and to companies through bad publicity. Consumer organizations
disseminating
unfair trade practices of relatively direct actions such as creating
and/or
interests by
to serve consumer
specific acts or practices, or by promoting competitive
market information, and prohibiting
directly or indirectly affect consumers (such as
transport.
forces in the markets which important
communications, etc.). They help consumers to be well-informned about
electricity,
tend to ignore such as verifying the accuracy of the information given on
aspects that they
product labels.
role in India in establishing
Consumer organizations have actively played an important work at the grass root level
various laws for the protection of consumer rights. They also India there are more than
In
and act as mediator between the consumer and the gevernment.
the rural consumers
600 consumer organisations and some of them are working and educating
how to read a label, filing acase in consumner forums. Since there is high rate of illiteracy
in rural India poor farmers fall prey and many times are cheated by defective seeds, fertilizer,
pesticides spurious goods and misleading advertisement. In the hinterlands it is required thai
the consumer organisations play a proactive role. Thus, Consumer Organizations are advocates
of consumer rights which attempt to enforce consumer rights and protect people from
corporate abuse. Following are some of the major Consumer Organizations in Indi:
Consumer Voice
2 CERC (Consumer Education and Research Centre)
3. FEDCOT (Federation of Consumer Organisations in Tamil
Nadu)
4. Citizen Consumer and Civic Action Group
 India
Consumer Movenment in 3.5

Consumer Guidance Society of India

5.

6. CUTS (Consumer Unity of Trust Society)

7. Mumbai Grahak Panchayat
1.
Consumer VOICE

Consumer VOICE was founded in 1983-84. Till mid 1986, Consumer VOICE functioned
as an unregistered voluntary consumer association. On 28 June 1986, it was registered
as a Public Charitable Trust. In 1988 the Department of Company Affairs, Govt. of
India accorded recognition to Consumer VOICE under the MRTP Act. The trust has
since been granted exemption under section 80-G of the Income Tax Act and, donations
made to the Trust are exempt from Tax. However the organization does not accept
donations from private enterprise in order to ensure objectivity, or fron individuals
except when the donor is genuinely committed to espouse the cause of consumer
protection. It raises awareness in consumers about malpractices perpetuated in the
market place, but also about the consumer rights. Consumer VOICE
empowers
cconsumer's to make informed choices by comparative testing of products and services
and also influences decision makers in up-gradation of National Standards. They help
the consumers to fight for their rights and get value for their money. They also inform
manufacturers for improvement required in their products. Since 1997, VOICE has
been publishing Consumer VOICE, magazine in English, hindi and also digitally, that
focuses on bringing information regarding tested products and empowers them to make
informed choice.
2. Consumer Education and Research Centre (CERC)
Consumer Education and Research Centre (CERC) was set up in 1978, at Ahmedabad,
which is dedicated to the education and empowerment of consumers as well as promotion
and protection of consumer interests through effective uses of education, research, the
media and law. CERChas three major goals to make consumers aware of their rights,
to help them protect themselves and to make providers of goods and services accountable.
Its activities include, comparative testing of products, complaints handling, legal advice
and litigation, consumer education and awareness programmes, library and information
Service, publication, advocacy, investor and environment protection. At CERC's in
house laboratory, comparative testing is conducted in four product categories, viz. food,
pharmaceuticals, personal care products and domestic electrical appliances.
3.
FEDCOT (Federation of Consumer Organisations in Tamil Nadu)
Ihe Federation of Consumer Organisations of Tamil Nadu and Pondicherry, well known
Dy its acronym, FEDCOT, is a nation-wide non-governmental organization, established
in T990.It is an umbrella body of more than 350 registered consumer associations in
lamil Nadu and Pondicherry. It is one of the largest consumer organisations in the
COuntry and in Asia working at grass-roots level. It embraces people from different
walks of life, It's sixty percentage of the member councils are organized in rural areas.
FEDCOT acts as a research, training, education, awareness creating and advocacy
Broup. It builds linkages and works in partnership with community-based organisations
3.6
Consumer Affairs and Customer Care
capacity and empower them to participate
and grass-roots communities to strengthen their
initiatives in socio-economic accountable governance, sustainable agriculture,
through
gender equalisation and ecological endeavours.
4. Citizen Consumer and Civic Action Group non-religious,
October 1985 as a non-profit, non-political,
CAGcame into existence on 7 based in Chennai,
India.
voluntary and professional citizens group After nearly a decade of
christened Consumer Action Group.
Ihe Group was originally CAG (Citizen, consumer and civic Action Group).
their existence, they changed it to citizen such as extreme
pollution, lack of
the common
They deal with issues affecting health care and civic amenities have
emerged as
access to infornmation, poor quality
priorities in the work undertaken by CAG.
5. Consumer Guidance Society of India
organisation
Consumer Guidance Society of India (CGSI) is a consumer rights
The became the first
Mumbai, India. It was founded by nine women in 1966, and
based in
to conduct formal product testing inand 1977. CGSI publishes a magazine, Keemat. It
in the area of consumer rights raises its voice against sub-standard products,
works
shortage of goods and many more
very high prices, hazardous drugs, never ending
injustices.
6. Consumer Unity of Trust Society
Rajasthan.
CUTS International (Consumer Unity & Trust Society) was formed in 1983 in
India (at
The organisation today has five programme centres and one resource centre in
Jaipur with headquarters, Chittorgarh, Calcutta and New Delhi), two resource centres
in Africa (at Lusaka, Zambia and Nairobi, Kenya) and one resource centre in London,
UK. CUTS is probably the only Indian NGO with such overseas operations.
CUTS is registered since 1984, under the Rajasthan Societies Registration Act, 1958,
the FCRA and under Sec: 80G of the Income Tax Act. It is governed by a 12-member
Executive Committee, which are elected every three years from a general body of 350
life members and 150 institutional members. The activities of CUTS comprise research,
advocacy and networking. Its working on several areas such as
1. Consumer protection,
2. International trade and development,
3. Competition, investment and economic regulation,
4. Human development, and
5 Consumer safety
7. Mumbai Grahak Panchayat
Mumbai Grahak
established in 1975.Panchayat (MGP) is a registered voluntary
It has more than
20,000 consumer organization
to whom it
supplies about 75 essential members in and around Mumbai (Bombay)
MGP's joint purchase and commodities at their
distribution system has been door-step, every
month.
acclaimed by Consumers
 nais 3.7
AMoremenLin
Consume
International which supports, links and represents consumer organizations all over the
enable consumers to exercise their choice. especially before festivals, MGP
world. To
Consumer Plazas at different locations in the city, for 10 days every year. Items
also has
readymade clothes, bed sheets, bags, sarees, utensils, crockery are sold at reasonable
Iike
rates.

MGP's Consumer Protection Wing has filed a number of public interest petitions to
consumers interests. MGP's Consumer Education Wing organizes consumer
protect
awareness camps, workshops, seminars for students and teachers.

How Consumer
Organisations Empower Consumers through Comparative Testing-
ACase Study
different brands offered to the consumer
Comparative Testing (CT) means the testing of
product category and having the same purpose, the results of which tests provide
in a characteristics of these products. For example,
onsIumers with unbiased information on the on the
then for comparative testing purposes basedthat the
#aconsumer has to select a soap bar different soap bars would be bought. After
market share of the brands atleast ten After
be codified and they would be given names such as A, B, C and so on.
label would nature of the
would be send to the lab for testing. The laboratory based on the
that they
on various parameters. For example in case of a soap it would
Droduct would do the testing
he

Cleaning efficiency
Surface Damage
Mushiness
Foam/Lather
Matter insoluble in alcohol

Moisture
Alkanity
Retention
to the organization which would
laboratory it
Further results would be communicated by the
on. Since it is third party certification
right
so the
show which brand has stood first, second andand empowers consumers to make commercial
themselves any
helps the to imprOve they do not accept depends upon
companies
choice. As these organisations are supported by government
Comnparative Testing by an
organisation
Choice of products for
adveninalionwide
sing. availability, price range. has
their market share and countries. In USAit
developed bcen
The testing is not new in
many
of Consumer Union have
concept of comparative years. The laboratories publication was regarding
bcen practiced for more than 75 since 1936 and their first CU's tests now called as
comibotlendg
out with product test reports Consumer Reports. The vitamintablets.*Which
magazine
milk in their monthly results coffee to
from cars to
Consumer's International test range
 Care
3.8 Consumer Affairs and Customer
Australia and "The Consumer' from New Zealand have
magaz1ne from UK, the Choice' of by many consumers
been reckoned
all been publishing test results and have
market which offer very similar features,
When there are various brands available in the consumer. For buying products and
is a tough task for the
making a rational decision quality, durability, after sales
updated information about the
Services consumers require Comparative testing helps the consumers in making a logical
service offered by the retailer. influence and bend the market to
to
their demands, The
purchase decision and enables them well as redress
consumers can force a review of production processes as
demands from
mechanisms.
Affairs has been financing various Voluntary Consumer
The Ministry of Consumer comparative tests of Products and services. This helps the
Organizations for conducting purchase decisions diligently. It confirms and
products and take
Consumers to compare the guaranteed to Indian Consumers in the
Consumer
to choose" which is
protects the Right laboratory tests conducted
Act, 1986. The test results are based on the findings of
Protection
by the concerned NGOs/VCOs. powerful link
crucial to the protection of consumer rights for it serves as a consumer to
Testing is brings the
government and the manufacturers. It
between the consumers, the position
center-stage of product manufacturing and selling, thus strengthening consumer
the conceptualisation, manufacturing and quality maintenance.
in the wider perspective of product Committee of the
testing programme started in India with the Sathi Nair
The comparative supporting comparative testing of products
Ministry of Civil Supply and Public Distributionproduct testing during the early nineties on
in 1991. With this VOICE started comparative
television sets.
Comparative Testing
Major Recommendations of the Sathi Nair Committee on
testing.
Manufacturers should agree to procedures being followed in comparative
conditions.
A weighting and grading plan to be evolved to suit Indian
Comparative testing would be done on 10-15 models purchased from market.
Samples from market to be based on market share of the company.
In case of litigation, it is to be ascertained if people who do testing are obliged to come
to witness box and depose.

How Comparative Testing Protects Consumers

Enables Consumers to Choose Better and Safer Alternative Products at Competitive
Prices.
Serves as a Link Between Consumers, the Government and the Manufacturers.
Brings Consumer Concerns to the Centre-stage of Product Manufacturing, Selling ad
policy making.
Right to Safe Product - Informing consumers on
Unsafe products
 India 3.9
Movementin
Consumer
Information About the Product - Brand Specific Information
Right to Complete
Rightto
Choose Among a Variety of Products - Price and Quality Comparisons
Consumer Education - Educates consumers regarding markets
Rightto
ofComparative Testing
Objectives
consumers unbiased information that will enable them to make a rational
To provide brands available in the metropolitan markets. This will help them
choice among major their
good value for money.
to get
standards of manufactured goods and services by increasing public awareness
Toraisethe
and consequently to
pressurise the manufacturers to improve the quality of the products
goods improve.
they supply. Thus, the standard of
basis for campaigns to persuade Government to introduce policies which
To serve as a
consumers.
protect the rights of
standard authorities the test-results for
To communicate to government, regulatory and
appropriate action against malpractices.
To educate consumers about the types of
products that will be most likely to suit their
quality oftheir products.
needs. Consumers would then pressure producers to improve the
trade practices.
To draw public attention to unsafe goods and unfair
health related products as per
To verify the product claims of different brands of
available National Standards.
Accredited Laboratories and the test results are
The testing is done by VCO through NABL
Governments and media. The same are
shared with Regulatory Authorities, concerned State
report is linked with the website of
disseminated through Consumer magazines and also the
Department of Consumer Affairs.
consumer organisations are actively involved in
In India Consumer Voice and Concert, consciousness is not yet the way
Comparative testing of products, Unlike the West, quality
consulting a magazine before purchasing
of life in India. The concepts of Comparative testing,
a brand would always help in empowering the consumers.
INDIA
RECENT DEVELOPMENTS IN CONSUMER PROTECTION IN
O
Protection include the following:
dOne of the recent developments in Consumer
1986 in present
Protection Act. 2019: The Consumer Protection Act,
ne Consumer
been repealed and replaced with the Consumer
times has thus, become archaic and it has President on 9th August
its accent from the
Protection Act, 2019. The New Act received
2019 and was implemented on 20th July 2020. The Consumer Protection
Act, 2019, provides
faced
system more robust. The earlier Act
mechanisms for making the consumer complaint related to e-commerce, product liability,
hugeanomalies where the problems of consumersconsumer courts, misleading advertisements
more than 6.2 lakh pending consumer cases in the
3.10
Consumer Affairs and Customer Care
is justice denied' any delay in t:
were not attended instantly. Since, Justice delayedsystem.
the
redressal by consumers reduces their trust in nrodsot
methods such as mediation, Central Consumer Protection Authority
Innovative commissions, untair contracts, class action
centres attached to consumer
liability, mediation techniques provide
part of the Consumer Protection Act, 2019. The new
suits are now a that the New
redressal to consumers and would be a gamechanger. It is believed would be a
speedy anomalies in the Old Act and
legislature would be able to overcome the Protection Act, 2019 are:
Consumer
pathbreaker. Salient features of the
Protection Act, 2019 Act which proposes slew
Some of the key highlights of the Consumer
measures for protection of consumers are:
inexpensive, speedy and
1. Establishment of Consumer Commissions: To provide have been set up in each
quasi-judicial bodies
summary redressal of consumer disputes, would be called as the District
District and State and at the national level, which now Commissions respectively. At
Commissions, the State Commissions and the National Commissions with the
and 35 State
present, there are more than 600 District Forums
apex. NCDRC
National Consumer Disputes Redressal Commission (NCDRC) at theDelhi. Thus, the
New
has its office at Janpath Bhawan, A Wing, 5th Floor, Janpath, Consumer Protection
three-tier systemn in the New Act would be the same as set up in the
Act, 1986 at district, state and national levels. As per the rules revised pecuniary
jurisdiction for entertaining consumer complaints in respect of goods and services paid
as consideration are as follows:
(a) District Commission up to 50 lakhs
(b) State Commission More than 50 lakh to ? 2 Crore
(c) National Commission More than2 Crore
Since the access to District commissions is better compared to state and national
commissions, the increase in limit to 50 lakhs of District Commissions is a welcome
step in terms of convenience and accessibility.
2. Central Consumer Protection Authority (CCPA): The Act envisages
of a central regulator, Central Consumer Protection Authority establishment
Trade Commission in US. The Authority addresses matters (CCPA),similar to Federal
unfair trade practices, misleading advertisements and related to consumer rights,
faulty and fake products. As aregulator CCPA has the imposes penalties for sell1ng
towards the manufacturers, sellers and service powers to take suo motu actions
providers. Thus, CCPA can act on:
(a) comnplaints of unfair trade
practices,
(b) issue safety guidelines,
(c) order product recall or
(d) refer discontinuation
complaints other regulators,
to
of services,
(e) has punitive powers such as
() can file actions imposing penalties, and
before consumer
commissions
 3.1|
Movementin India
(iunsume
rights or unfair trade practices
) Intervene in proceeding in matters of consumer
a Director-General for
The Central Authority also has an Investigation Wing headed by Act which is a new
the
the purpose of conducting inquiry or investigation under
addition in the Consumer Protection Act, 2019.
lakh on
For false and misleading advertisements CCPA can issue a penalty upto ? 10
a manufacturer and endorser and includes online marketing. For a subsequent offence,
the fine may extend to ? 50 lakh. For every subsequent offence, the period of prohibition
may extend to three years. However, there are certain exceptions when an endorser will
not be held liable for such a penalty. CCPA has the authority to direct the removal of
a misleading advertisement and can take Suo-motu actions.
Recently. CCPA has directed ECommerce companies to recall the pressure cookers and
reimburse their prices to the consumers and submit a compliance report of the same
within 45 days. The company has also been directed to pay a penalty of ? 1,00,000 for
allowing sale of such pressure cookers on its e-commerce platfom and violating rights
of consumers. The Domestic Pressure Cooker (Quality Control) Order, which came into
force on 01.02.2021 mandates conformity to IS 2347:2017 for all domestic pressure
cookers. Therefore, since 01.02.2021, all pressure cookers are required to conform to
IS 2347:2017 and due diligence is required to be done whether the pressure cookers
are offered for sale online or offline.
To raise cognizance and quality awareness among consumers, CCPA has launched a
country-wide campaign to prevent sale of spurious and counterfeit goods that violate
QCOs issued by the Central Government. Everyday usage products classified as part
of the campaign consist of helmets, domestic pressure cookers and cooking gas cylinders.
CCPA has written to District Collectors across the country to investigate unfair trade
practices and violation of consumer rights concerning manufacture or sale of such
products and submit Action Taken Report. Bureau of Indian Standards also conducted
search and seizure of a number of non-standard helmets and pressure cookers where
1,435 pressure cookers and 1,088 helmets which did not conform to mandatory standards
have been seized by them.
3. Consumer Councils: Chapter IIof the Consumer Protection Act, 2019 envisages setting
up of the Consumer Protection Councils at the Centre, in all the States and in each
district. As in the 1986 Act the New legislature also provides for establishment of
Advisory councils at three levels: National, State and District. The object of the Councils
Is to promote and protect the rights of the consumers. The Councils are very important
and potent deliberative bodies for the consumers and play an important role in spreading
the consumer movement, especially in rural areas. The Councils act as the catalyst for
change so that the present market system functions for the welfare of the consumers
and for satisfying their needs.
4. Product Liability: Chapter VI applies to every claim for compensation under a product
liability action by a complainant for any harm caused by a defective product manufactured
by a product manufacturer or serviced by a product service provider or sold by a
product seller. Aproduct liability action may be brought by acomplainant against a
3.12 Consumer Affairs and Customer Care

product manufacturer or a product service provider or a product seller, as the case may
account of a defective product.
be, for any harm caused to him on
product manufacturer shall be liable in product liability action, i f
A
manufacturing defect; or
(a) the product contains a
(b) the product is defective in design; or
manufacturing specifications; or
(c) there is a deviation from
to the express warranty; or
(a) the product does not conform
contain adequate instructions of correct usage to prevent
(e) the product fails to
regarding improper or incorrect usage.
any harm or any warning providing
Chapter V of the Act introduces the concept of mediation for open a
5. Mediation: Government, by notification, would
The State
speedy redressal to consumers. would be attached to each of the District
Commissions
consumer mediation cellwhich also establish.
Commissions of that State. The Central Government would Commission
and the State National
notification, a consumer mediation cell to be attached to the
by
regional Benches. A consumer mediation cell would consist of persons
and each of the complaints between
act as mediators and try to resolve
as may be prescribed who would the parties. Every
business and the consumers with a win-win situation for both
the
maintain
consumner mediation cell would
mediators;
(a) a list of empanelled
cell;
(b) a list of cases handled by the
(c) record of proceeding; and
by regulations.
(d) any other information as may be specified
a quarterly report to the District
Every consumer mediation cell would submit Commission to which it would be
Commission, State Commission or the National
attached.
manufacturer or trader or service
6. Unfair Contracts: It means a contract between a
such terms which cause
provider on one hand, and a consumer on the other, having
significant change in the rights of such consumer, including the following:
consumer for
(i) requiring manifestly excessive security deposits to be given by a
the performance of contractual obligations.
thereof which
(ii) imposing any penalty on the consumer, for the breach of contract
is wholly disproportionate to the loss occurred due to such breach to the other
party to the contract.
(iii) refusing to accept early repayment of debts on payment of applicable Penalty.
(iv) entitling a party tothe contract to terminate such contract unilaterally, withour
reasonable cause.
 lndia 3.13
Movementin
CoLsumer
the contract to
permitting or has the effect of permitting one party to assign
() of the other party who is a consumer, without his consent.
the detriment
imposing on the consumer any unreasonable charge, obligation or condition
(wi) consumer to disadvantage.
which puts such
consumer
nin iling of Complaints: Several provisions aimed at simplifying the
adjudication process in the consumer commissions have been added. These
dispute of the consumer disputes
include, among others, enhancing the pecuniary jurisdiction
members in the consumer fora to
odressal agencies, increasing minimum number of
their own orders by the state
facilitate quick disposal of complaints, power to review facilitate quicker disposal of
and district commission, constitution of circuit bench' to
of the president and members
complaints, reforming the process for the appointment complaints if the question of
of the district commission, and deemed admissibility of
days.
admissibility is not decided within the specified period of 21
complaints with the consumer courts fom
The Act now allows consumers to file their
were required to file complaint in
anvwhere. This is abig relief as earlier consumers transaction had
provider was located or where the
the area where the seller or service e-commnerce
especially with the rise in
taken place. This is a welcoming change,anywhere. In addition, the Act also enables
purchases, where the seller could be located
file complaints electronically through e-Daakhil App and in the
the consumer to
through video conferencing, saving both
Consumer Commissions and seek a hearing
and time and a big respite to physically challenged consumners.
money (E-commerce)
E-Commerce and Direct Selling Guidelines: The Consumer Protection
8.
not advisories. It mandates
e-tailers to display
are mandatory and are
Rules, 2020
goods and services on their websites and moot the procedure
details of sellers supplying apply to all e-commerce retailers,
whether
complaints. They
l0 resolve consumer goods and services to lndian
consumers. The e
abroad, offering
registered in India or
that personally identifiable information of
to ensure
vOInmerce companies are required of contract between e-Commerce entity and the
terms
CustomersS are protected. Display warranty / guarantee, delivery / shipment,
exchange,
oier relating to return, refund, mechanism etc. to enable consumers to make
grievance redressal
ue or payments, details about the goods and services offered for sale
omed decisions. All relevant in case of imported goods the name and
by the Seller including country of origin and of the
guarantees related to the authenticity or genuineness informed
alls of the importer and enable the consumer to
make an
imported products need to be provided to
well as sellers, need to appoint a
Marketplaces, as
decision at the pre-I-purchase stage.entity manipulate the price of goods or services
shall class or
grievance officer. No e-commerce between consumers of the same
reviews.
t0 gain unreasonable profit or discriminate their rights or post fake
affecting
make any arbitrary classification of cconsumers if the Central
Consumer
9. legislature
Strict Penalties for Endorsers: Under the
New advertisement is false or
investigation that any or is in contravention of
Protection Authorityprejudicial
is satisfied after consumer
interest of anyconcerned trader or manufacturer or
misleading and is to the
the
consumer rights, it may 1SSue directions to
3.14 Consumer Affairs and Customer Care
endorser or advertiser or publisher, as the case may be, to iscontinue such advertisement
or to modify the same.
The Central Authority has the powers to impose a penalty n respect of false or misleading
advertisement, by a manufacturer or an endorser, which may extend to ten lakh rupees, For
every subsequent contravention by a manufacturer or endorser, 1t may impose a penalty,
necessary
which may extend to fifty lakh rupees. Further, the Central Authority if it deems it
it may, by order, prohibit the endorser of a false or misleading advertisement from making
endorsement of any product or service for a period which may extend to one year.
It is believed that the Consumer Protection Act, 2019 would play a key role in strengthening
act
the consumer movement in India. The innovative methods added in the New Act would
serve as a deterrent to any trader or service provider or E-Commerce company who would
think twice before cheating consumers.
B. SMART CONSUMER APPLICATION: The Government has launched a mobile
application "Smart Consumer" to enable the consumer to scan the bar code of the product
and get alldetails of the product such as name of the product, details of manufacturer, year
and month of manufacture, net content and consumer care details for making complaint in
case of any defect.
C. Consumer App: In order to help consumers to seek advice and register their complaints
the Department of Consumer Affairs has launched a Consumer App on 01-10-2019. The App
is available in both Hindi and English on Android as well as iOS platform. Through the
Consumer App, a consumer can register its complaint/grievance and also give suggestions.
In the month of October, almost 3020 complaints were received, out of which 2000 complaints
have been resolved. The App aims at giving a fair resolution within 60 days.
D. Grievances Against Misleading Advertisements (Gama): In its endeavor to address
the problem of misleading advertisements, the Government has launched a portal called
"Grievances Against Misleading Advertisements (GAMA)" for registering complaints online.
A Consumer can register a complaint along with a copy /video / audio of such advertisement
through the web portal.
E. Online Dispute Resolution : An Online Consumer
Mediation Centre, established at the
National Law School of India University, Bengaluru under the aegis of
Affairs, Government of India aims to provide for a Ministry Of Consumer
consumer disputes both through physical as well asstate-of-the-art infrastructure for resolving
online mediation through its platform.
The center will provide innovative
technology
and resolve conflicts and to propel online for consumers and organisations to manage
mediation as a first choice to resolving consumer
disputes. This is an innovative tool that affords
quick andeasy redressal mechanism and at consumers better access to justice througn
to maintain good customer the same time provide opportunity for
relations. businesses
F. Online Consumer
platform, the GovernmentCommunities: In association with the Local Circles, a social
has launched a platform
Online Consumer media
citizens to discuss and opine about Communities'
can get connected with their governance and daily life issues. Through this, a for
any other Government,
communities they are a part of it.
City, Causes,
Neighborhood, citizel
Interest, needs and
 hndia 3.15
in
Morement
onsumer
has currently one of the largest number of internet
(& CampaignOn Internet Safety: India
rapid inerease in digitization across all spheres, the message of internet
UsCTS. With the integrated into the everyday tasks that the consumer undertakes online.
needs to be
safety
Government in
association with a Partner Company has initiated a year-long campaign
Digital Literacy, Safety & Security workshops to educate users about the
organizing safety and security.
challenges of internet
Consumer Awareness: The Government has been conducting a countrywide multimedia
and
H.
awareness campaign since 2005 on various issues related to consumer rights
Consumers awake] has
responsibilities across diverse subjects. "Jago Grahak Jago" [Awake
a household axiom. In order to create awareness among
the people living in
today become
rural and
backward areas, the Government has decided to take part in important fairs/
fairs/festivals draw a large
ole of various states/UTs, in view of the fact that such
rural and backward areas.
number of people from
National Consumer Helpline: Government of India has set National Consumer Helpline
I which provides advice, information
NCH), with a toll-free number 1800-11-4000 or 1915,
persuade businesses to reorient their policy and
and guidance to empower consumers and
grievances adopting globalstandards.
management systems to address consumer concerns and
Affairs operates under the Centre for
NCH is a project of the Union Ministry of Consumer The Project recognizes
Consumer Studies at Indian Institute of Public Administration from
the need of consumers for a Telephone Helpline to deal with multitude of problems arising
service providers. A consumer can call NCH
in their day-to-day dealings with business and
to seek information, advice or guidance for his queries and complaints.
National Consumer Helpline supports consumers by:
related to Products & Services.
Guiding consumers in finding solutions to problems
Authorities.
Providing information related to Companies and Regulatory
defaulting Service Providers
Facilitating consumers in filing complaints against
Grievances Redressal Mechanisms,
Empowering consumers to use available Consumer
Educating Consumers about their Rights and Responsibilities.
NCH VISION
and socially and legally
"A Nation of awakened, empowered and responsible consumers
responsible Corporations.
NCH MISSION
to empower Indian consumers and
"To provide telephonic advice, information and guidance consumer
persuade businesses to reorient their policy and management systems to address
COncerns and grievances adopting world class standards.
NCH responds to more than 40,000 complaints in a month, and it has partnered with more
than 370 complaints are transferred online for resolution and
major from
getting feedback
companies to whom
them. An Integrated Grievance Redress
Mechanism (INGRAM) portal
Was Central and State Government
launched for bringing all stakeholders such as consumers,
 Consumer Affairs and
3.16
call centres etc. oCstomer
n rCaree
regulators, Ombudsmen and
Agencies, private companies, awareness among consumers to protect their rye
platform. The portal helps in creating
responsibilities. Consumers can register online their grievances thr
inform them of their accessible now through this portal
Consumer Helpline is
this portal. The National
Application for New-Age Governance) is a new method
Umang app (Unified Mobile
related to consumer grievances.
developed for registering complaints Governments
Helplines: State Consumer Helplines have been set up by State State
State Consumer Disputes Redressal mechanism at
Alternate Consumer
with the objective toencourage
through nmediation.
level and help in resolving cases all
e-commerce continues to occupy the highest proportion of
It is relevant to note that consumer grievances at NCH relating to
Major types of
grievances registered on NCH. delay
delivery of defective products, failure to refund paid amount,
e-commerce include
in delivery of product etc. mascot
Mascot: Department of consumer Affairs has launched its new
J. Jagriti the New and responsibilities. Further a short new
consumer about its rights
Jagriti which is an aware more and
Department of Consumer Affairs, where
code '1915' has been launched by the Consumer
have been found registering their grievances on the National
more consumers
Helpline.
JABO
rtDEPARTMENT CF GRAAAK Azadi Ka
CONSUMR AFFARS JAGO Arrrit ahotsav

The Department of Consumer Affairs

launched its official mascot

|JAGRITI

She is here to safeguard your consumer rights

 Consumer Movement in India 3.17

KCitizen Charter: It has been recognised the world over that good
governance is essential
for sustainable development, both economic and social. The three essential
aspects emphasised
in good governance are transparency, accountability and responsiveness of the administration.
The Citizen's Charters initiative"" is a response to the quest for
solving the problems which
a citizen encounters, day in and day out, while dealing with
services.
organisations providing public
The concept of Citizen's Charter enshrines the trust between the
service provider and its
users. The concept was first articulated and implemented in the United
Conservative Government of John Major in 1991 as a national programmeKingdom
by the
with a simple
aim: to continuously improve the quality of public services for the
that these services respond to the needs and wishes of the
people of the country so
users. The programme was
re-launched in 1998 by the Labour Government of Tony Blair which rechristened it Services
First".

The basic objective of the Citizen's Charter is to empower the

citizen in
service delivery. The six principles of the Citizen's Charter movement as relation public
to
were:
originally framed
(i) Quality: Improving the quality of services;
(ii) Choice: Wherever possible;
(ii) Standards: Specifying what to expect and how to act if standards are not met;
(iv) Value: For the taxpayers' money;
(v) Accountability: Individuals and Organisations; and
(vi) Transparency: Rules/Procedures/Schemes/Grievances.
These were later elaborated by the Labour Government as the nine principles of Service
Delivery (1998), which are as follows:
() Set standards of service;
(1) Be open and provide full information;
(iii) Consult and involve;
(IY) Encourage access and the promotion of choice;
(v) Treat all fairly;
(VI) Put things right when they go wrOng;
(Vii) Use resources effectively;
(viii) Innovate and improve;
(Ix) Work with other providers.
 3.18 Consumer Affairs and Customer Care
Citizen Charter: The Indian Scenario
and Union Territories held on 24 May
At a Conference of Chief Ministers of various States the
1997 in New Delhi, an Action Plan for Effective and Responsive Government" at that
decisions at that Conference was
Centre and State levels was adopted. One of the major
formulate Citizen's Charters, starting with those
the Central and State Governments would
Railways, Telecom, Posts, Public Distribution
sectors that have a large public interface (e.g.,
and the like). These Charters were to include first, standards of service as well as
Systems
expect for service delivery, avenues of grievance
the time limits that the public can reasonablyscrutiny through the involvement of citizen and
redressal and a provision for independent
consumer groups. Government of India
Department of Administrative Reforms and Public Grievances in
The formulating and operationalising Citizen's
(DARPG) initiated the task of coordinating,Charters as well as a list of do's and don'ts
Charters. The guidelines for formulating the departments/organisations to enable them to
government
were communicated to various the formulation of the Charters, the
government
bring out focused and effective charters. For with
and State levels were advised to constitute a task force
agencies at the Centre
and the cutting edge staff.
representation from users, senior management
The Charters are expected to
incorporate the following elements :
Statements;
(i) Vision and Mission
organisation;
(ii)) Details of business transacted by the
(iii) Details of clients;
group;
(iv) Details of services provided to each client
mechanism and how to access it; and
(v) Details of grievance redressal
(vi) Expectations from the clients.
Indian Citizen's Charter has an additional
Primarily an adaptation of the UK model, the
other words 'obligations of the users'.
component of 'expectations from the clients' or in
groups, and other stakeholders in the
Involvement of consumer organisations, citizen
that the Citizen's Charter meets
formulation of the Citizen's Charter is emphasised to ensure
and evaluation of the Charters, both
the needs of the users. Regular monitoring, review
internally and through external agencies has been enjoined.
As on March, 2005, 107 Citizen's Charters had been
formulated by the Central Government
Ministries/Departments/Organisations and 629 Charters by various agencies of State
national Charters are
Governments & Administrations of Union Territories. Most of the
organisations with
posted on the government's websites and are open to public scrutiny. The
Citizen's Charters have been advised to give publicity to their Charters through such means
as printvelectronic media and awareness campaigns.
The Ministry of Consumer Affairs Citizen Charter
Citizens' Charter of the Department of Consumer Affairs is a declaration of commitment of
the Department to achieve excellence in the formulation and implementation of policies and
 Indi. 3.19
Movementin
smer
Department of Consumer Affairs for the benefit of consumers and the
poccdures ofthe
Department of Consumer Affairs is the nodal agency for formulation of
atlarge.
National
public Consumer Policy,implementing various consumer related programmes, formulating
Bureau of Indian Standards (BIS), and Testing & Evaiuation through
standards through
National Test
House, a sub ordinate a subordinate office for fulfilment of all other objectives
mentioned in the vision of the Department. In this process the department consults and
collaborates
as with the following stakeholders state governments and union territories from
Consumer Protection and Legal Metrology department. Full two responsibility centres
Food,
namely Bureau of
Indian Standards and National Test House, National Consumer Disputes
Redressal Commission (NCDRC), Indian Institute of Public Administration and National
Federation of Indian Chamber of Commerce (FICCI) and industry and leading
Law Schools, organisations and all consumers under various disciplines across the
voluntary consumer
o econsulted. The document mentions how consumers can get speedy redressal and
year.
the Charter is updated every
I EDaakhil portal for Consumer grievance redressal is now operational in 33 States/UTs
fr resnective NCDRC, State Commission, 13- Circuit Benches, 651-District Commissions
Atotal of 23640 complaints have been received through e-filing on e-daakhil portal in last
NO vears. The Consumer Protection Act, 2019, which came into force from 20th July,
2020, has provision for e-filing of consumer complaints in the Consumer Commissions and
online payment of the fees for filing a complaint. Going through restrictions on consumers
due to COVID-19, the e-daakhil portal was introduced as inexpensive, speedy and hassle
fiee mechanism for filing consumer complaints. A web application for E-filing of consumer
complaints named "edaakhil.nic. in" has been developed by NIC for the purpose. This digital
software for filing consumer complaints has many features like e-Notice, case document
download link & VC hearing link, filing written response by opposite party, fling rejoinder
by complainant and alerts via SMS/Email.
Te e-daakhil portal empowers the consumer and their advocates to file the consumer
complaints along with payment of requisite fees online from anywhere for the redressal of
their complaints. It also facilitates the consumer commissions to scrutinize the complaints
tO dccept, reject or forward the complaint to the concerned commission for further
processing, To facilitate the rural consumers for e-filing, it has been decided to integrate the
Common Service Centres (CSC) with the e-daakhil portal. As many Consumers at Gram
Panchayat level may either not have access to electronic modes of communication or unable
to use the tools, they may avail the services of CSCs in filing their complaints in the
Consumer Commission. The work for integration of this portal with CSC has been done.
E-filing was launched by National Consumer Dispute Redressal Commission (NCDRC) on
7h September, 2020. Delhi was the first state to implement it on 8th September, 2020. Later
Maharashtra,
,Andaman & Nicobar Islands, Bihar, Chhattisgarh, Jharkhand, Gujarat, Chandigarh,
Andhra Pradesh, Odisha, Uttar Pradesh, Madhya Pradesh, Punjab, Karnataka &Haryana
Iihadplement
been eproactively
d facility of e-fillinginuptheir respective States/UTs. Department
with the States/UTs to launch e-filing.
of Consumer Affairs
following
SeMaiveranlpuricasesDistrihave
ct leadmadeby Success
Hon'ble stories
Justice which been disposed through e-daakhil.
SubhashhaveChandra Kulshrestha has the quickest
 Consumer Affairs and Customer Care
3.20
Acknowledgement of Consumer
disposal of cases on e-daakhil platform. Mandatoryestablished to redress complaints.
hours is
Complaints by e-Commerce Entity within 48
of the Consumer Protection Act 2019, allow the aggrieved
Ihe efficacious provisions for injury. It
penalizing
also contemplates provisions forhearing the
cOnsumers to seek compensation proViSions of
by competent court. The Act also encompasses
he violators consumer commissions.
Complaints through video conferencing in
SUMMARY OF THIS CHAPTER
collective power of consumers to take a country
Consumer movement refers to the
development. Consumer mnovement
education and
forward with respect to awareness, improve the quality of living of the people by
which attempts to
is a social movement and bargaining power of consumers.
enhancing the economic well-being
edible oil.
shortages, hoarding, black marketing, adulteration of food and
Rampant food form, in the 1960s.
consumer movement in an organised
rising prices gave birth to the
consumers from
organizations are advocacy groups that seek to protect
Consunmer predatory
regarding unsafe products,
companies or dealers or service providers abusethe rights of consumers. Consumer
protect
pricing, misleading advertising, and campaigning or lobbying and
organizations make use of methods such as, protests,
testing of products or services.
A comprehensive up-gradation of the existing
Consumer Protection Act, 1986, by way
strengthening the rights
of introduction of the Consumer Protection Act, 2019 and for complaints regarding
of consumers and providing a mechanism for redressal of their
the President of
defects in goods and deficiency in services has received the accent of
India on 9th August 2019.
The Government has launched a mobile application "Smart Consumer" to enable the
consumer to scan the bar code of the product and get all details of the product such
as name of the product, details of manufacturer, year and month of manufacture, net
content and consumer care details for making complaint in case of any defect.
Many new schemes such as GAMA portal, Online communities have been launched by
the Department of Consumer Affairs. The Government has been conducting a
countrywide multimedia awareness campaign since 2005 on various issues related to
consumer rights and responsibilities across diverse subjects. "Jago Grahak Jago" [Awake
Consumers awake] has today become a household axiom.
Government of India has set National Consumer Helpline (NCH), with a
number 1800-11-4000 or 1915, which provides advice. toll-Teo
empower consumers and persuade businesses to reorient their information and guidance
systems to address consumer concerns and policy and managen
grievances adopting global standau
Department of consumer Affairs has launched its new mascot Jagriti which is an aware
Consumer about its rights and responsibilities., Furthera
launched by the Department of Consumer Affairs, where short more
new and
code more
'1915'consumers
has
have been found registering their
grievances on the National Consumer Help
 mdia 3.21
Morementin
onsumer
Citizens Charter of the Department of Consumner Affairs is adeclaration of commitment
Department to achieve excellence in the fomulation and implementation of
of the
policies and procedures of the Department of Consumer Afairs for the benefit of
eumers and the public at large. Department of Consumer Affairs is the nodal agency
for formulation
of National Consumer Policy,implementing various consumner related
programmes, formulating standards through Bureau of Indian Standards (BIS), and
office for fulfilment
Testing & Evaluation through National Test House, a a subordinate
of all other objectives as mentioned in the vision of the Department.
in 33 States/UTs
E.Daakhil portal for Consumer grievance redressal is now operational Commissions
651-District
for respective NCDRC, State Commission, 13- Circuit Benches, e-daakhil portal in
Atotal of 23640 complaints have been received through e-filing on
last two years.

QUESTIONS FROM THIS CHAPTER

Mention the various International and National

O1 Describe the concept of consumerismn?movement?
developments leading towards consumer
statement
are unorganised", In the light of the above
02 "Consumers are cheated because they consumers in India?
explain the role and importance of empowering organisations
Explain the functioning of some major consumer
03 What are consumer organisations?
in India?
oragnisations involve in comparative testing of products?
Q4 Write a case study on how consumer
in Consumer Protection in India?
Q5 Enumerate any Recent Developments
Protection Act, 2019?
Q6 Mention the salient features of the Consumer
Explain its objectives and functions?
Q7 What is National Consumer Helpline?
Q8 Write a short note on e-daakhil portal?
09 Explain the following:
(a) Umang App
(b) Ingram App
(c) Smart Consumer App
(d) GAMA App
References
Protection Movement in India lstEd, Kanishka Publishers,
Chahar S. S. (2007) Consumer
Delhi.