Chapter 5: Consumer Rights
The Consumer in the Marketplace
We participate in the market both as producers and as consumers. As consumers we buy goods and services for final use. Rules and regulations are required to protect consumers because markets do not work in a fair manner when producers are few and powerful while consumers purchase in small amounts and are scattered.
How are Consumers Exploited?
- Underweight and under-measurement: shopkeepers weigh less than they should.
- Adulteration and impurities: especially in food items and medicines, causing heavy monetary and health loss.
- Higher price: traders charge more than the Maximum Retail Price (MRP).
- Substandard/defective goods: sale of goods of poor quality, defective appliances.
- False information and misleading advertisements: companies lure consumers with wrong claims about a product's ingredients, benefits or durability.
- Lack of safety: goods that do not follow safety norms (e.g., faulty pressure cookers, electrical appliances).
The Consumer Movement
The consumer movement arose out of dissatisfaction of consumers with unfair practices of sellers. In India, rampant food shortages, hoarding, black marketing and adulteration in the 1960s gave birth to the movement in an organised form; till the 1970s consumer organisations were largely engaged in writing articles and holding exhibitions. A major step was the enactment of the Consumer Protection Act, 1986 (COPRA) by the Indian government. At the international level, the UN adopted the UN Guidelines for Consumer Protection in 1985, which became the basis for consumer movements worldwide; Consumers International is the umbrella body of consumer organisations (over 200 member organisations from more than 100 countries).
Consumer Rights
| Right | Meaning | Example |
|---|---|---|
| Right to Safety | Protection against goods and services hazardous to life and property | Pressure cooker safety valve; hazardous electrical goods must meet safety norms |
| Right to be Informed | Consumer has the right to information about ingredients, price, batch number, date of manufacture, expiry date, address of the manufacturer, directions for use and side effects | MRP printed on packs; medicine labels; RTI Act 2005 extends the idea to government departments |
| Right to Choose | Right to be assured, wherever possible, of access to a variety of goods and services at competitive prices; no one can force a combination purchase | A gas dealer cannot force you to buy a stove with a new connection |
| Right to be Heard / Right to Seek Redressal | Right to representation and to seek compensation against unfair trade practices and exploitation | Filing a case in a Consumer Commission for a defective product |
| Right to Consumer Education | Right to acquire knowledge and skills to be an informed consumer | "Jago Grahak Jago" campaign; consumer awareness in school curriculum |
Right to Information Act, 2005 (RTI): ensures citizens all the information about the functions of government departments — an extension of the consumer's right to be informed into public services.
Consumer Protection Act — Redressal Machinery
Under COPRA, a three-tier quasi-judicial machinery was set up for redressal of consumer disputes:
| Level | Body | Deals with claims (COPRA framework) |
|---|---|---|
| District | District Consumer Disputes Redressal Commission (earlier "Forum") | Cases involving claims up to Rs 20 lakh |
| State | State Consumer Disputes Redressal Commission | Claims between Rs 20 lakh and Rs 1 crore |
| National | National Consumer Disputes Redressal Commission | Claims exceeding Rs 1 crore |
If a case is dismissed at the district level, the consumer can appeal at the state level and then at the national level. Thus COPRA enabled consumers to have the right to represent themselves in consumer courts. India observes 24 December as National Consumers' Day — the day COPRA was enacted in 1986. India is one of the few countries with exclusive courts for consumer redressal.
Standardisation and Quality Certification
| Logo/Mark | Certifies |
|---|---|
| ISI (Bureau of Indian Standards) | Quality of industrial and consumer goods (electrical appliances, cement, packaged drinking water, LPG cylinders — mandatory for products affecting health and safety) |
| Agmark | Quality of agricultural products (edible oils, spices, honey, cereals) |
| Hallmark | Purity of gold and silver jewellery |
While purchasing, consumers should look for these certification marks; for some products that affect health and safety, certification is compulsory.
Taking the Consumer Movement Forward
- Duties of consumers: ask for a cash memo/bill when buying (proof of purchase, needed to file a complaint), check certification marks, MRP, expiry dates and weights, form consumer awareness organisations, and complain against genuine grievances.
- India has more than 2000 consumer groups, though only about 50-60 are well organised and recognised for their work; the government gives financial support to voluntary consumer organisations (VCAs) to create awareness.
- Weaknesses of the movement: the redressal process is cumbersome, expensive and time-consuming; consumers often lack evidence (many purchases are without bills); most workers in the unorganised sector buy from small shops with no receipts; laws on labour and markets are weakly enforced; consumer awareness is still spreading slowly.
- The enactment of COPRA nevertheless changed the scene — consumer redressal is a right, and an active consumer movement can keep sellers and service providers in check.