Consumer Rights

The Consumer In The Marketplace

We participate in the market both as producers and consumers. As producers, we may be working in agriculture, industry, or services. As consumers, we purchase and use the various goods and services produced. In the marketplace, consumers are often in a vulnerable position. While producers can be large and powerful companies, an individual consumer often lacks the power and information to challenge unfair practices.

Exploitation of consumers in the marketplace can happen in various ways:

Unfair Trade Practices: Shopkeepers may weigh less than what they should or add charges that were not mentioned before.
Adulteration: Sellers may add adulterants to expensive goods, like mixing stones in pulses or papaya seeds in black pepper, to increase their profits at the cost of the consumer's health.
False Information: Companies may provide misleading information through media and other sources to attract consumers. For example, a company might sell a product claiming it makes a child taller, without any scientific proof.
Defective Goods and Poor Service: Consumers may be sold defective products or provided with services that are deficient in quality.
Overcharging: Sellers might charge a price higher than the Maximum Retail Price (MRP) printed on the product.

The marketplace does not always work in a fair manner. The principle of Caveat Emptor ('Let the buyer beware') used to be the norm, placing the entire responsibility of assessing the quality of a product on the consumer. This has now shifted towards protecting the consumer, leading to the rise of the consumer movement.

Consumer Movement

The consumer movement arose out of the dissatisfaction of consumers as many unfair practices were being indulged in by the sellers. For a long time, there was no legal system available to consumers to protect them from exploitation in the marketplace. When a consumer was not happy with a particular brand or shop, he or she generally avoided buying from them or stopped purchasing that brand. It was presumed that it was the responsibility of consumers to be careful while buying a commodity or service.

In India, the movement as a social force originated with the necessity of protecting and promoting the interests of consumers against unethical and unfair trade practices. Rampant food shortages, hoarding, black marketing, and adulteration of food and edible oil gave birth to the consumer movement in an organised form in the 1960s. Till the 1970s, consumer organisations were largely engaged in writing articles and holding exhibitions. They formed consumer groups to look into the malpractices in ration shops and overcrowding in road passenger transport.

A major step was taken in 1986 by the Indian government with the enactment of the Consumer Protection Act 1986, popularly known as COPRA. This was a landmark act that provided a dedicated legal framework for the protection of consumer rights in India.

Consumers International

The consumer movement has also become a global phenomenon. In 1985, the United Nations adopted the UN Guidelines for Consumer Protection. This was a tool for nations to adopt policies and laws to protect consumers and for consumer advocacy groups to press their governments to do so.

Today, Consumers International is the umbrella body for over 200 member organisations from over 100 countries. It acts as a global voice for consumers, ensuring their rights are promoted and protected in the international policy-making forums and the global marketplace.

Safety Is Everyone’s Right

One of the most fundamental rights of a consumer is the Right to Safety. This right protects consumers against the marketing of goods and the delivery of services that are hazardous to life and property. Producers need to strictly follow the required safety rules and regulations.

There are many goods and services that we purchase that require special attention to safety. For example, pressure cookers need to have a safety valve; if it is defective, it can cause a serious accident. The manufacturers of the safety valve have to ensure high quality. Similarly, medicines, electrical appliances, and automobiles all need to conform to safety norms.

Example 1. Reji Mathew, a healthy boy studying in Class IX, was admitted to a private clinic in Kerala for removal of tonsils. An ENT surgeon performed the tonsillectomy under general anaesthesia. As a result of improper anaesthesia, Reji showed symptoms of brain abnormalities because of which he was crippled for life.

His father filed a case in the State Consumer Disputes Redressal Commission, claiming compensation of ₹5,00,000 for medical negligence and deficiency in service.

Answer:

The State Commission, after looking into all the evidence, found that there was indeed medical negligence by the hospital. It held the hospital responsible for deficiency in service and directed it to pay the compensation.

This case highlights the importance of the Right to Safety. While using many goods and services, consumers have the right to be protected. In this case, the hospital's negligence violated Reji's right to safety, leading to a life-altering injury. The consumer court system provided a mechanism for him to get justice and compensation for the harm caused.

Information About Goods And Services

Consumers have the Right to be Informed about the particulars of goods and services that they purchase. When we buy a product, we can find details such as the ingredients used, price, batch number, date of manufacture, expiry date, and the address of the manufacturer on its packaging. This information is crucial for consumers to make informed choices and to complain or ask for compensation if a product proves to be defective.

For example, when we buy a medicine, the directions for proper use and information related to side effects and risks associated with usage are printed on the pack. This allows the consumer to use the product safely and effectively.

Maximum Retail Price (MRP)

One of the most important pieces of information is the Maximum Retail Price (MRP). A consumer can bargain with the seller to sell at a price less than the MRP, but a seller cannot legally charge more than the MRP. This protects consumers from arbitrary pricing by retailers.

Right to Information (RTI) Act

In October 2005, the Government of India enacted a law, popularly known as the Right to Information (RTI) Act, which ensures its citizens all the information about the functioning of government departments. While distinct from consumer rights related to products, the RTI Act empowered consumers by promoting transparency and accountability in governance, which also affects the delivery of public services like water, electricity, and banking.

Example 2. Amrita, a student, wanted to know the details of the fees she paid for a course and the details of the faculty teaching it. She filed an RTI application with the college administration. The administration initially refused but had to provide the information after an appeal, as the RTI Act grants her the right to this information.

Answer:

This example shows how the Right to Information empowers individuals. By having access to information about the services they are paying for, consumers can hold institutions accountable and ensure they are getting what was promised. It strengthens the position of the consumer in the marketplace for services.

Where Should Consumers Go To Get Justice?

Consumers have the Right to Seek Redressal against unfair trade practices and exploitation. If any damage is done to a consumer, they have the right to get compensation depending on the degree of damage. The Consumer Protection Act, 1986 (COPRA) provided for a three-tier quasi-judicial machinery at the district, state, and national levels for the redressal of consumer disputes.

An image of a consumer court in session.

The consumer redressal mechanism is as follows:

District Consumer Disputes Redressal Commission (District Forum): This court deals with cases involving claims up to a certain financial limit. Under the Consumer Protection Act, 2019, this limit is for claims up to ₹50 lakh.
State Consumer Disputes Redressal Commission (State Commission): This court handles cases with claims exceeding the District Forum's limit and up to ₹2 crore. It also hears appeals against the orders of the District Forum.
National Consumer Disputes Redressal Commission (National Commission): This apex court deals with cases involving claims exceeding ₹2 crore. It also hears appeals against the orders of the State Commission.

The process of filing a case is designed to be simple and inexpensive. A consumer can file a complaint on a plain paper, stating the facts and attaching relevant documents (like bills and warranty cards). They can represent their own case and do not necessarily need a lawyer. This system has empowered consumers to stand up against large corporations and service providers.

Learning To Become Well-Informed Consumers

For the consumer movement to be successful, active participation from consumers is essential. Consumer awareness is the key. A well-informed consumer can protect themselves from exploitation. This involves being conscious of your rights and responsibilities.

Some responsibilities of a consumer include:

Always ask for a cash memo or bill for the products and services purchased. This serves as proof of purchase and is essential for filing a complaint.
Check the expiry and manufacturing dates before buying goods.
Be aware of quality certification marks while purchasing goods.
Do not be swayed by misleading advertisements.
File a complaint in an appropriate consumer forum in case of any grievance.

ISI, Agmark and Hallmark

Logos and certification help consumers get assured of quality while purchasing goods and services. These marks certify that a product conforms to certain standards.

ISI Mark: Issued by the Bureau of Indian Standards (BIS), this mark is found on many industrial and consumer products like electrical appliances, LPG cylinders, cement, etc. It is a mark of safety and conformity to Indian standards.
Agmark: This is a certification mark for agricultural products issued by the Directorate of Marketing and Inspection of the Government of India. You can find this mark on packaged food items like ghee, spices, honey, and pulses.
Hallmark: This is a certification for the purity of gold and silver jewellery, overseen by the Bureau of Indian Standards. It helps consumers ascertain the purity of the precious metal they are buying.

Taking The Consumer Movement Forward

The consumer movement in India has led to the formation of various consumer groups and has brought about significant legal changes. However, the movement is still faced with challenges. The consumer redressal process can be time-consuming and expensive for some. Awareness, especially in rural areas, is still low. Enforcement of laws that protect workers in the unorganised sector, who are also consumers, is weak.

To strengthen the movement, the government enacted the new Consumer Protection Act, 2019, which replaced the 1986 Act. The new act has introduced several provisions to further empower consumers, such as:

Establishment of a Central Consumer Protection Authority (CCPA) to proactively protect, promote, and enforce the rights of consumers.
Rules for e-commerce and direct selling to protect online shoppers.
Provisions for product liability, allowing consumers to sue for harm caused by a defective product or deficient service.
Simplifying the dispute resolution process, including enabling consumers to file complaints electronically.

December 24 is observed as National Consumer Rights Day in India to commemorate the day the Consumer Protection Act, 1986, received the assent of the president. The journey of the consumer movement is ongoing. It requires continuous effort from the government, businesses, and most importantly, from aware and assertive consumers to ensure a fair and just marketplace for all.