Chapter No. 03: Role and Importance of Consumer Movements. · A Study of Consumer Movement in...

Chapter No. 03: Role and Importance of ConsumerMovements.

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A Study of Consumer Movement in Selected Districts of Maharashtra.Page 99

Chapter No. 03:

Role and Importance of Consumer

Movements.

Introduction. Importance of Consumer Movement in India. Historical Review of Consumer Movement

(International). First Stage of Consumer Movement. Second Stage of Consumer Movement. Third Stage of Consumer Movement. Consumer Movement in India. Consumer Movement in India (1740 Words). Birth of Consumers’ Day. Awareness among the consumers. Consumer’s Responsibilities. Unfair Trade Practices. Need and Importance of Consumer Education. The Teacher’s Role in Consumer Education. Role of Consumerism in Indian Banking. NGOs and Consumer Organizations in India. Role of NGOs in Consumer’s Issue. Media and Consumers Problems. Hindrances to the Growth of a Consumer Movement

in India. Large Business Houses. Involvement of people at large. Success Of Consumerism


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Introduction:

The consumer movement in India is as old as trade and

commerce itself. Even in Kautilya’s Arthshastra, there are

references to the concept of protection of consumers against the

exploitation by trade and industry, short weighment and

measurements, adulteration along with the punishment for these

offences. There was, however, no organized and systematic

movement actually safeguarding the interests of the consumers.

Prior to Independence, consumer interests were considered mainly

under laws like the Indian Penal Code, Agricultural Production

Grading and Marketing Act 1937, and Drugs and Cosmetics Act,

1940. Even though different parts of India had varying degrees of

awareness, in general the level of awareness was low. It is generally

believed that the consumer movement in India as of today is quite

strong when it is compared with other developing countries in

Asia, Africa and Latin America. India is a vast country with a very

large population of which a sizeable percentage lives below the

poverty line. Because of economic inequality, low level of literacy

and ignorance, particularly amongst women, the level of consumer

awareness is not too high and, therefore, the consumers are not

able to assert and protect themselves. They easily get exploited by

trade and industry and service providers. With the liberalization

process which started in 1991 the entire economic scenario is

undergoing a complete change from a government-driven economy

to a market-driven economy.1 Protecting the interests of

consumers has, therefore, become one of the paramount concerns

of the Government than ever before. Hence, policies are being

designed and legislations enacted to protect the consumers’


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interest and grant them the right to choice, safety, information and

redressal.

Importance of Consumer Movement in India:

In business and economic planning the consumer should be

held supreme in any economy. It is his ultimate satisfaction that

matters. While addressing a group of businessmen, Gandhiji also

once said, "A customer is the most important visitor on our pre-

mises. He is dependent on us. We are dependent on him. He is not

an interruption in our work. He is the purpose of it. He is a part of

it. We are not doing him a favor by serving him. He is doing us a

favor by giving us an opportunity to do so." Gandhi's words place

the consumer on a very high pedestal. But the consumer's high

place is only a myth so far as the Indian economy is considered.

Indian consumer is an utterly helpless fellow.2 He has no say in the

quality or nature of goods that are sent to the market for his

consumption. He is a victim of numerous malpractices. He is often

made to buy adulterated or substandard goods. Second hand goods

are passed on to him as new. Clever businessmen, through glossy

salesmanship, misleading advertisements and tall claims about

their products, rob the consumer of his hard-earned money. The

consumer knows what is happening to him. But except making a

loud, individual kind of protest, which has no effect on the

mammon-worshipping businessmen, there is very little that he can

do to check his systematic exploitation.

Since a majority of our consumers, particularly in the rural

areas, are illiterate, they are not able to distinguish between the


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genuine and the spurious or the good and the bad. It is mainly

these consumers who suffer at the hands of unscrupulous

businessmen. Our consumers also suffer from a total absence of

awareness among them. They know nothing about their rights;

they are ignorant of the laws. First of all, the laws on trademarks,

essential commodities, drugs, weights and measures etc., are not

very effective. Secondly, the standard of morals in our country

being what it is, the businessmen do not find it difficult to steer

clear of laws through greasing the palms of the inspection staff.

Besides, litigation is such a costly and time consuming affair that

no consumer has the courage and patience to throw cudgels on

behalf of his ever suffering community.

The cumulative result of these commissions and profit mar-

gins has been a lop-sided and totally unfair arrangement which

seeks to take advantage of the plight of the consumer who realizes

that he is being fleeced but is totally helpless to do anything about

it. Fortunately, the realization has lately dawned on the authorities

at various levels that something needs to be done to protect the

interests of the consumer to save him from exploitation arid to

ensure that he gets the worth of his money in respect of both

quality and quantity. Mr. Rajyadhyaksha, a former judge of the

Supreme Court spoke of the rights of a consumer in a free society

and of how these rights could be assured. In particular, he laid

emphasis on three rights—the right to choose, the right to be in-

formed and the right to be heard. All these rights assume the exis-

tence of certain conditions.


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The basic rights of a consumer were precisely defined by no

less a person than the late President John F. Kennedy, who

articulated what had long been known in advanced countries and

among vigilant, highly educated people. The rights as defined by

him are:

(1) the right to safety and to be protected against the marketing

of goods which are health hazards or pose a danger to life

itself;

(2) the right to be informed so as to be protected against

fraudulent, deceitful or grossly misleading information,

advertising, labeling or other such practices and to be given

the facts he needs to make an informal choice;

(3) The right to choose and to be assured; as far as possible,

access to variety of products and services at competitive

prices, and in industries in which free competition is not

workable and Government regulation is substituted to be

assured satisfactory quality and service at fair prices; and

(4) The right to be heard and thus to be assured that consumer

interests will receive full and sympathetic consideration in

the formulation of governmental policy and fair and

expeditious treatment in its administrative tribunals.

Since India has for decades been a seller's market where the

manufacturer and the trader have the upper hand and manage to

sell whatever is marketed, the awareness of the consumer's basic


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rights as defined by former President, Kennedy and others, has

taken a long-time coming. For all practical purposes, the consumer

has been made the victim of monopolistic practices even where

there are no monopoly goods. Until recently, there was no appro-

priate legislation on the statute book to ensure a fair deal to the

consumer, where there was some kind of protective legislation, it

was seldom enforced and remained on paper only.3 A few

purposeful Acts have been passed by Parliament to protect the

interests of the consumer and these reflect the Government's

desire to do the needful in this direction. But as stated above, the

flaw has been in the implementation. The manufacturers, the tra-

ders, both wholesalers and retailers, know this and, therefore, they

go on merrily overcharging and fleecing the consumer in both

quality and quantity. The poor consumer is left high and dry.

The Weights and Measures Committee, commonly known as

the Maitra Committee, estimated a few years ago that the faulty

weights and measures enabled the trade to gain both ways; even

one per cent error in commercial transactions carried out in the

country by inaccurate weights and measures causes the consumer a

loss of over Rs 170 crores in cities; the farmers stand to lose about

Rs. 150 crores by such a fault. A later report released in January

1977 disclosed that under-weighing alone cheated the consumers

to the extent of Rs. 3,000 crores annually.4 This indicates the

magnitude of the loss the consumers suffer—all through the lapse

on the Government's part in enforcing a strict check on the weights

and measures being used by traders at various levels.


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The interests of the consumer can be protected by making

more stringent laws and making the enforcement machinery

perform its function honestly and diligently. Among the methods

adopted by the Government in its effort to protect the consumer's

interests are:

The order requiring display of price lists in shop;

The orders fixing the limits of stocks of certain commodities

which can be stored at one time;

The order requiring fixation of price tag;

Printing weight and prices on cartons;

Opening of more fair price shops;

The prescription necessitating a certificate from the Bureau

Indian of Standards (BIS) regarding the quality of the stuff

being sold.

There is also the Monopolies and Restrictive Trade Practices

Act (MRTP) to act as the watch dog of the Indian consumer.

The consumer movement in India, unfortunately, has deve-

loped very slowly. Periodic efforts are made to organize a network

of consumer societies, but the impact has been minimal. Again it is

ironical that while defects in automobiles, freezers, fans, packed

foods etc. have been, highlighted, not much attention has been

given the people's essential requirements. The masses are virtually

voiceless in this field; they accept whatever is given by the 'grocer'.

Owing to their general ignorance, they are the most common

victims of the force of capitalist’s exploitation. Consumer

protection should start at the lower levels and work upwards. The

laws of the land should be adjusted accordingly.


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The Indian consumer also needs to be educated about his

rights, as has been done in the U.S.A., Britain and other advanced

countries. Quality should become the norm instead of being the

exception in this country. Every possible effort should be made to

enable the consumer to get full value for his money. In this venture

the co-operation of all sections of the people and also of the

industrialists is essential. If industry exercises self-discipline and

persuades all the manufacturers and businessmen to ensure

quality and correct weights, much of the difficulty will vanish.

Consumer’s organizations exist in some towns of the country, but

after the initial flush of enthusiasm they become silent and cease to

function. The network of super patron was established with high

hopes, but they have made only a marginal impact on the general

price level. They do have considerable patronage but owing to a

certain bureaucratic practices and the time-consuming procedures

they follow, many people prefer, to continue patronizing the petty

traders near their homes. Obviously, consumers’ protection is

possible in India, but effective enforcement by legislation and a

sustained ‘drive to educate the people are necessary. Happily, TV

programmes have begun to discuss the problems of consumer

protection and consumer’s movement and a separate cell for

consumer protection has been formed in the Ministry of Food and

Supplies. Let us hope the consumer movement gathers momentum

in times to come.


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Historical Review of Consumer Movement

(International):

Organising consumers and protesting against unfair trade

practices was not a new phenomenon. Way back in the middle of

the 19th century, a section of consumers in England organized

themselves to protest against exploitation of labour by the textile

industry and they gave a call to boycott the buying of textiles

manufactured by such erring companies. There were also similar

moves by another section against employment of child and women

labour, and slavery. Towards the end of the 19th century, there were

sporadic attempts by consumers in the U.K. America and Europe

to form Buyers Clubs in order to avoid middlemen and

profiteering. The buyers’ clubs were like informal consumer co-

operatives where goods were purchased directly from the

producers and supplied to consumers to assure quality, prevent

adulteration and ensure a reasonable price. Laws aimed at the

protection of consumers are not confined to modern times. In 200

BC there were laws in India against food adulteration. The Laws of

Manu which are several centuries old refer to punishments to be

given to dishonest traders. The Greeks too had laws prohibiting

adulteration of food. Ancient Egypt had laws on meat handling and

inspection by food inspectors of the government. The first

consumer law was enacted in 1784 in Massachusetts followed by

the law on weights and measures in 1790. In the U.K. Merchandise

Marks Act was passed in 1852 and in 1878, the first Weights and

Measurement Act was passed. The well known Sale of Goods Act

came into force in 1893. Some prohibitions against adulterated

food and false weights and measures are thousands of years old,


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A Study of Consumer Movement in Selected Districts of Maharashtra.8

such as those found in Old Testament, the code of Hamurabhi and

the ancient laws of India. European Consumer Protection statutes

began to appear in the 15th and 16th centuries and were based on

the principle of deterrence. During most of the middle ages,

consumers were protected to some degree by the moral structures

of the Catholic Church, self regulations by craft guilds and

consumers’ own knowledge of products and local sellers. Gradually

the European kings over-saw a shift in legal doctrine that favoured

sellers, in their efforts to encourage the growth of trade. The

dominant rule of the market place became “caveat emptor” or

buyer bewares. The supply and demand conditions that underlay

the doctrine of “caveat emptor” and limited Government

intervention on behalf of consumers changed rapidly in the latter

decades of the 19th century.5

First Stage of Consumer Movement:

The industrialization of American life entertained many

benefits but it had its dark side as well. Particularly two negative

aspects contributed to the first wave of consumer movement in

USA. The first problem was achieving the right amount of

competition in various markets. The second problem was the safety

and the quality of the new branded goods that were being sold in

national rather than local market. Although most manufacturers of

goods had been sensitive to associate their names with high

quality, some disregarded consumer welfare. There was formation

of trust, initiatives and referendums for laws protecting female and

child labourers, tariff reforms and most importantly the rights of

consumers. In 1887, the Inter-state Commerce Commission was


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established to regulate the rail road industry, setting the precedent

for independent regulatory agencies and in 1894 the Federal Trade

Commission was established to regulate the products. In 1865, a

Federal Law was passed to outlaw the importation of diseased

cattle and swine. In 1848, the Import Drugs Act was passed to deal

with the counterfeit, contaminated, dilute and decomposed drugs

being sold in the United States of America.6

The efforts of the anti-adulteration movement culminated in

1906 with the passage of the Pure Food and Drug Act and the Meat

Inspection Act. All these pieces of legislation owed their existence

to the efforts of one person, Dr. Harvevy W. Wiley, who became

Head of the Department of Agriculture’s Division of Chemistry in

1883. Relying upon the findings of his chemists, he attempted to

publicize dangers in American Food Supply. In 1903 he established

‘Poison Squad’ a group of young male volunteers. Wiley’s efforts

were supplemented by those of a number of citizens groups

especially those composed of women. The National Consumer

League, originally founded to improve the working conditions of-

women and children through selective boycotts was one of these.

The American Medical Association also joined the fight. Thus the

first wave of consumer activism in the United States of America

was a part of the broader progressive movement.


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Second Stage of Consumer Movement:

The first stage of consumer movement ended in 1910s it was

an outgrowth of the massive changes brought by the early stages of

the industrial revolution. The period of 1920s and 1930s marks the

second era of consumer movement and it may be conceived as

response to the broadening impact of industrialization revolution,

it goes beyond the factories and transportation systems to whom,

the domain of consumption itself. A new organization called

‘Consumers Research Inc.’ was formed with financial support from

the State and it started disseminating the product testing and

information. The establishment of consumers union’s constitutes

one of key events in the second era of consumer movement in

America. Another landmark development which occurred at the

same time involved the attempt to provide consumer

representation in the federal government. The Consumer Advisory

Board within the National Recovery Administration (NRA) and the

Consumer Council within the department of agriculture provided

such an opportunity for consumer representation. Between the two

world wars, there were a string of legislations in the area of food

and drug. The Federal Food, Drug and Cosmetics Act, 1938

replaced the Food and Drug Act, 1906. An important amendment

was made to the Federal Trade Commission Act, 1914 in 1938

empowering the Federal Trade Commission to regulate deceptive

practices in addition to the unfair ones. N.7 This had the effect of

giving the Federal Trade Commission jurisdiction over a wide

range of harmful business practices, including dissipative

advertising.


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Third Stage of Consumer Movement:

The Decade following the World War II was not hospitable to

any form of social protests, including consumer movement.

Nevertheless owing to increase of consumer prices as a result of

inflation between 1946 and 1956, it offered difficult choice to the

consumers among the new and technologically complex products.

Ralph Nader was to become the unchallenged leader of the

American consumer movement, his name becoming almost

synonymous with it. The issue of auto-safety had been languishing

for more than a decade until Ralph Nader to testify at a

congressional hearing and the subsequent revelation that General

Motors was spying on Nader. Although Nader showed that a single

concerned citizen could triumph against one of the world’s largest

corporations, he moved to institutionalize his guerilla operation by

establishing the Center for the Study of Responsive Law. The

centre served as the staging area for Nader’s Raiders. The Raiders

descended on federal agencies such as the Federal Trade

Commission, Interstate Commerce Commission, and Food and

Drug Administration. Their mission was to document the extent to

which these regulatory watchdogs had fallen asleep on the job or,

worse, become the tools of the very interests they were supposed to

regulate. President John Kennedy’s ‘Consumer message’ to

Congress serves as a convenient starting point for the third era of

consumer movement in the United States. The message, the first

one by a President on the topic of consumer protection, was

delivered on 15 March, 1962.8 In it, President Kennedy enunciated

a Consumer Bill of Rights, including the rights to - safety,

information, choose among a variety of products and services at


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competitive prices, and fair hearing by government in the

formulation of consumer policy.

Consumer Movement in India:

India’s history reveals that in various periods and regimes of

different kings and dynasties prior to the British rule, there were

enactments to punish the dishonest and unfair traders and

producers. The laws of Manu and Chanakya’s ‘Arthasastra’ also

refer to the punishments to be awarded to dishonest traders. The

British introduced in India laws such as the Sale of Goods Act,

Weights and Measurements Act which were being followed in

England. Some organized effort to protect consumers from the

middlemen was made in the 1940s by eminent freedom fighters

such as Sri. Tanguturi Prakasam, Sri C. Rajagopalachari, etc. in

Southern India.9 They started consumer co-operative stores to

retail essential commodities. This became a social movement and

the concept of consumer co-operatives spread to different parts of

the country. Today, consumer organizations such as the Mumbai

Grahak Panchayat in Mumbai are continuing this approach to

consumer welfare by organizing the procurement and distribution

of essential items to their members.

The origin and growth of the consumer movement in India

which has many similarities to the movements elsewhere, can be

divided into three significant stages-

The first stage constitutes the 1960s in which organisations

such as the Consumer Guidance Society of India (Bombay)


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were formed to inform and educate consumers on the quality

of goods and services and to conduct simple tests on goods of

daily consumption.

During the second phase, 1970-1980, shortages in the supply

of essential commodities and the unsatisfactory functioning of

the Public Distribution System (PDS) led activists to form

consumer organizations in their towns and localities to

ventilate their grievances to the authorities concerned. Several

such organizations which were formed between 1970 and 1980

were primarily concerned with the problems of inflation, food

adulteration and the Public Distribution System. These

organizations served a very useful purpose as voluntary

vigilance groups in the market place.

The third phase of growth covering the period from 1981 to

1990 signifies expansion and consolidation of the consumer

movement in India, especially after 1986. With the enactment

of the Consumer Protection Act, 1986, there has been a spurt

in the number of new organizations in the country. We can

certainly say that the consumer movement in India has come

of age. Beginning with less than 10 organisations in 1965, we

had by 1996 established over 900 consumer organizations

across the country. This is the largest number of consumer

organisations in any country in the world.


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Consumer Movement in India (1740 Words):

The basic idea behind the consumer protection movement is

protection of the right of consumers. It was President Kennedy

who declared the consumers’ rights for the first time in his

message to the American Congress in March 1962. They were the

right to information, the right to choose and the right to be heard.

Later, International Organisation of Consumers’ Union added four

more rights, viz, the right to redress, the right to consumer

education, the right to healthy environment and the right to basic

needs. These rights were incorporated in the United Nation’s

Charter of Human Rights. The Government of India also

recognised these rights later.10

The consumer movement exercises a considerable influence

on the socio-economic environment of business. In a country 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 Government has a significant role in

safeguarding the interests of consumers by promoting a climate of

fair competition and preventing exploitation of consumers. The

consumer movement has changed it and sellers feel now it is a

question of seller beware. The objective of the consumer movement

is to secure the interests of the consumer against all types of unfair

trade practices. Consumerism as an effective and organised

movement started in 1960s in the USA. Ralph Nader has lifted

consumerism into a major social force. Consumerism may be

defined as a social force within the environment designed to aid


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and protect the consumers by exerting legal, moral and economic

pressures on business and government.

Features of Consumer Movement:

1. It is basically a protest movement.

2. It is a mass movement in the sense that masses are the general

body of consumers.

3. It is generally a non-official movement. Public and voluntary

consumers, organisations initiate the movement.

4. Though it is not a government-sponsored movement, it is

recognised and backed up by the Government.

Birth of Consumers’ Day:

Kennedy recognised that consumers are the largest economic

group in the country’s economy, affecting and affected by almost

every public and private economic decision. But they were also the

only important group who were not effectively organised.

Considering the importance of Kennedy’s speech to the US

Congress on this day, and the resultant law, the CI took a decision

in 1982 to observe 15 March as the World Consumer Rights Day

from 1983. Peculiar though it may sound, 15 March is not observed

as a special day in the world’s largest and most pulsating consumer

society - the US. But at home in India the Government, adopted 15

March as the National Consumer’s Day.11


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Awareness among the consumers:

Only 20 per cent of consumers in India are aware of the

consumer protection law and just 42 per cent of them have heard

about consumer rights. Only about 20 per cent of consumers in the

country are aware of the Act even after 25 years of its existence. It

is the best known act followed by Weights and Measures Act, 1976

and Food Safety and Standards Act, 2006. The government has

enacted the Consumer Protection law way back in 1986 to protect

consumer interest and settle disputes at the central, state and

district levels. Only about 14 per cent consumers are aware about

the proposed Food Security Act. The awareness is the highest in

northern region and the lowest in eastern region. Just 42 per cent

have heard about consumer rights and almost 50 per cent of

consumers are not even aware about government's 'Jago Grahak

Jago' campaign.12 However, these findings are still encouraging

considering the fact that five years ago only 18 per cent were aware

about the Act, the study said expressing concern that people are

gradually losing trust on consumer redressal mechanisms.

Consumer’s Responsibilities:

The consumers have a number of rights regarding the

purchase of things, but at the same time they have some

responsibilities too. It means that the consumer should keep a few

things in mind while purchasing them. They are as follows:13

1. Consumer should use his right: Consumers have many

rights with regard to the goods and services. They must be

aware of their rights while buying. These rights are: Right to


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safety, Right to be informed, Right to representation, Right to

seek redressal, Right to consumer education, etc.

2. Cautious consumer/ do not buy blindly: The consumers

should make full use of their reason while buying things. They

should not take the seller‟s word as final truth. In other words,

while buying consumer must get information regarding the

quality, quantity, price, utility etc. of goods and services.

3. Filing complaint for the redressal of actual

grievances: It is the responsibility of a consumer to

approach the officer concerned there is some complaint about

the goods purchased. A late complaint may find that the period

of guarantee/warrantee has lapsed. Sometimes, consumers

ignore the deception of businessmen. This tendency

encourages corrupt business practices.

4. Consumer must be quality conscious / Do not

compromise on quality: The consumers should never

compromise on the quality of goods. Therefore, they should

not buy inferior stuff out of greed for less prices. If the

consumers behave like this, there cannot be any protection for

them from any quarter. It is also the responsibility of the

consumers only to buy goods with the ISI, Agmark, Wool

mark, FPO etc. printed on them. All these symbols are

indicative of the good quality of the goods.


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5. Advertisements often exaggerate/Beware of false

advertisement: The seller informs the consumer about their

things through the medium of advertisement. The sellers

exaggerate the quality of their goods. Therefore, it is the

responsibility of the consumers to recognize the truth of

advertisement.

6. Do not forget to get Receipt and

Guarantee/warrantee card: One should always get a

receipt or bill for the things purchased. In case a

guarantee/warrantee card is also offered by seller, it should

also be taken. In case the goods purchased are of inferior

quality or some defects appears and bothers the customers,

these documents will be of great help in settling all kinds of

dispute with the seller.

7. Do not buy in hurry: The first important responsibility of

consumers is that they should not buy in hurry. It means that

the consumers should make an estimate of the things they

want to buy their along with their quantity required by them.

They should also take in consideration the place from where to

buy the things.


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Unfair Trade Practices:

The primary objective of the passing the 1986 Act is to

protect the rights of consumers against the unfair trade practices

followed by unscrupulous traders. Thus it becomes important to

know the definition of the expression “unfair trade practice”. The

1993 Amendment has incorporated a complete definition of the

expression with a view to make it an independent source.

According to the Act, ‘Unfair Trade Practice’ means a trade practice

which for the purpose of promoting the sale, use, or supply of any

goods or for the provision of any service. Any unfair method /

practice or deceptive practice that is adopted by the traders in

promoting their sales or services becomes an Unfair Trade

Practice. It includes the following:14

False representation as to the standard, quality, quantity,

grade, composition, style or model of the goods sold.

False representation as to the standard, quality or grade of the

service hired.

False representation that rebuilt, second-hand, renovated, re-

conditioned or old goods are new goods.

False representation as to the sponsorship, approval,

performance, characteristic, accessories, uses or benefits of the

goods or services.

False representation that the seller or supplier has a

sponsorship or approval or affiliation which he actually does

not have.

False or misleading representation concerning the need for or

the usefulness of any goods or services.


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Giving warranty or guarantee to the public about the

performance, efficacy or length of life of a product or of any

goods, which is not based on adequate or proper testing.

Making misrepresentation as to a warranty or guarantee of a

product or of any goods or services; or making a promise to

replace, maintain or repair an article without any reasonable

basis.

Misleading the public concerning the price at which products /

goods or services have been ordinarily sold.

Giving false or misleading facts, suggesting unfairly that the

goods, services or trade of another person are of low quality

standard etc., so as to affect adversely other’s trade.

Permitting the publication of any advertisement in any form

for the sale or supply at a bargain price of goods or services

that are not intended to be offered for sale or supply at the

bargain price etc.

Permitting the offering of gifts or other items with the

intention of creating impression that they are offered free of

charge when the same are fully or partly covered by the

amount collected by the trader

Permitting the conduct of any contest, lottery or game of

chance or skill, with an intention to promote either directly or

indirectly the sale, use or supply of any product or any

business interest

Permitting the sale or supply of goods knowing or having

reason to believe that the goods do not comply with the

standards prescribed by competent authority relating to their


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performance, composition, contents, design, construction or

packaging; and

Permitting the hoarding i.e. storing or destruction of goods or

refusing to sell them with an intention to raise the cost of those

or other similar goods.

This is a welcome change because it is common nowadays to

find that the business community which announces a number of

schemes to offer free gifts or prizes etc., normally does not publish

the result of such schemes after their closure, thereby, putting the

consumers to a lot of inconvenience. Now, under the explanation

added to the newly added clause defining unfair trade practice

clearly mandates that the results of such schemes should be

published within a reasonable period of time in the same

newspaper in which the scheme was originally advertised. Failure

to do so would amount to unfair trade practices.

Need and Importance of Consumer Education:

Consumer education is one of the concerns now knocking at

the doors of schools / colleges curriculum. Its need has been

realized by all the enlightened people. Educationists have also

started getting convinced that such a concern should find due place

in school curriculum. Technological development has flooded the

market with a variety of goods and services. It is, therefore,

important that a child possesses basic knowledge and skills to

judge the products. Consumer Education helps in providing this

knowledge to the students. In other words, Consumer Education

develops critical awareness and living skills which are oriented


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towards building a better future for our society. It is only in the

schools / colleges that tomorrow’s consumers will learn to become

more discriminating in their shopping habits, more knowledgeable

of their rights and responsibilities. The child becomes a

discriminating buyer by taking rational decisions, there by refusing

to fall a prey to advertisement or persuasions. Aware and alert

student consumers can become the eyes and ears of the nation,

helping to foster a sense of national pride. It is said that Consumer

Education helps to open the ‘Consumer eye’ of a person, where by a

well informed consumer buys the products after critical and

analytical evaluation from the point of view of his individual

interest and in the interest of the society and nation at large.15

Consumer Education at school / college level aims to educate the

students to become knowledgeable and rational consumers,

conscious of their needs and capable of choosing products in a

relatively free and uninfluenced manner. This, in turn is expected

to lead to effective and economic competition as well as to healthy

and correct production corresponding to consumers’ needs and

wishes. Hence consumer education at school / college level is

essential in view of -

1. The changing needs of the new generation.

2. The changed economic and industrial scenario of the country.

3. Aggressive market strategies, the misleading advertisements.

4. Ensuring better quality of life for the future citizens of the

country who would be educated enough to guard ‘against bad

products’ and ‘bad services


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The Teacher’s Role in Consumer Education:

The teacher’s role is very important in consumer education.

The teacher has to choose effective teaching methods in order to be

effective in Consumer Education. Owing to the different aims of

Consumer Education and the multi-disciplinary nature of the

subject, the teaching methods for Consumer Education are of

critical importance. It is not only just as transfer of knowledge, but

also development of skills and Citizen Consumer Clubs

understanding of the society in which consumers play their part.16

One cannot become an informed consumer just by listening to a

teacher, reading a book or learning a theory. Consumer Education

is a continuous process of learning and practicing skills in daily life

situations. Activities are an essential part of Consumer Education.

Activities are good for assimilation of experiences and empirical

insights. But activities alone are not good enough. Consumer

Education has to contribute to concept formation as well. Acting as

a responsible consumer also means being guided by sound

principles and that means consumers must have a clear

understanding of the socio-economic structure of society.

Consumer Education focuses on behaviour towards others, and

problem solving techniques. Listening skills, brain storming,

assertiveness training, role play, group-work, referral and research

skills are part of the learning process. This means that beyond the

traditional lecture, there are numerous ways to teach Consumer

Education which are a lot more effective and interesting.


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Role of Consumerism in Indian Banking:

The role of effectiveness of consumerism in Indian consumer

banking is a performance appraisal measured in terms of level and

quality of success from concerned working record and/ or survey of

evaluative opinion of the key role players in the success of

consumer movement. As a result of the enactment and

implementation of the Consumer Protection Act, 1986 there has

been an increased amount of pressure from various groups viz.,

consumer organizations, media, bank customers, and even from

the bankers themselves who have propelled the banking sector in

India to become more socially accountable and relevant to

customer requirements than ever before. Consumerism has

nevertheless initiated a process of change and geared up the

banking sector to regulate a technique, which is making significant

contribution to bank customers. Besides, consumers have also

raised their voice against the injustice to them in the banking

industry. As a result of this a customer service centre has been set

up for each of the nationalized banks. It is also possible to

approach the consumer associations like All India Bank Depositors

Association, Mumbai, Consumer Education Society, Kolkatta,

SCOPE, Common Cause, New Delhi, CERC, Ahmedabad etc.17

In case no satisfactory response is received or the complaint

is not attended to the matter may be brought up to the attention of

the Secretary, Banking Operations and Development, Reserve

Bank of India, Mumbai that is also now attending to customer

complaints. Despite the institutionalization of the complaint

redressal mechanism, consumers are still not satisfied with the


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existing arrangements and are, therefore, compelled to resort to

legal action for the redress of their genuine and long standing

grievances. It is therefore dire need of the hour to improve current

status of consumerism because the ultimate aim of effectiveness of

consumerism will not be achieved simply by making institutional

arrangements. There is thus a greater need for bringing a change in

the attitude of the officers and the staff working in the banks, to

train them to systematically deal with the consumers complaint, to

instill in them a spirit of customer service, and to overhaul and

streamline the functioning of banks with a view to rendering

adequate and satisfactory services to the consumers at large.

Bank customers learn a lot about their rights regarding bank

services from the articles, editorials and other forms of consumer

columns in the leading newspapers and magazines. Moreover, the

consumer activists and consumer organizations find the press to be

the most effective medium for strengthening the consumer

movement. To inculcate consciousness among customers towards

the rules, procedures, rights to file complaints, consumer columns

and reports are published for making the public aware about these.

These press releases have given a head start to the concept of

consumerism in consumer banking. Media people help consumer

activists and voluntary organizations in creating mass awareness

by providing time and apace for the relief of aggrieved bank

customers. Similarly, the role of media in consumer protection is

vital and finds expression through telecasting consumer based

documentaries, case histories, survey reports giving proper

coverage to consumer activities of consumer organizations,


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highlighting landmark judgments on consumer issues, even

fighting on behalf customers, adequate coverage to seminars and

conferences on consumer issues, providing consumer information

through various media.

NGOs and Consumer Organizations in India:

Non-governmental Organizations (NGOs) are those

organizations which aim at promoting the welfare of the people,

and are non-profit making. They have voluntary decision-making

structure, and are free from the interference of the government.

They may be fully or partially financed by the government or any

other agency. Non-government organisations dealing with the

consumers’ grievances are also known as consumer organisations

or associations. The first association to be set up was the Indian

Association of Consumers. In 1963, the National Consumer

Association was set up. It was a wing of a social organisation, the

Bharat Sevak Samaj.18 The main aims of this NGO were to study

the trend of prices in the market and publish them for the

information of consumers and to agitate against the malpractices

of traders. Food crisis gave rise to rampant black-marketing in the

1960s. In 1964, the National Consumer Association started the

movement against the price rise caused due to the drought of the

1960s. It held meetings to protest against the price rise and formed

social squads to keep a watch on the price trends in different cities

of India. Slowly and gradually, several other associations were

organised to seek redressal for consumers’ grievances.


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Role of NGOs in Consumer’s Issue:

(i) They organize campaigns on various consumer issues to

create social awareness.

(ii) They organize training programmes for the consumers and

make them conscious of their rights and modes of redressal

of their grievances.

(iii) They bring out periodicals and other publications to

enlighten the consumers about various consumer related

developments. For instance, VOICE publishes a bimonthly

magazine called “Consumer Voice” which covers a wide

variety of subjects of importance for the consumers.

(iv) They provide free legal advice to their members on matters

of consumer interest and help them to take up their

grievances with the District Forum, State Commission and

National Commission set up under the Consumer

Protection Act.

(v) They interact with businessmen and Chambers of

Commerce and Industry for ensuring a better deal for

consumers.

(vi) They launch Public Interest Litigation on important

consumer issues. Public Interest Litigation means a legal

action initiated in a court of law regarding a matter of

general public interest such as ban on a product injurious to

public health.


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Media and Consumers Problems:

As a general rule, the problem of society, a social group or in

some cases, the problems of individual are well expressed by no

one else but media. Our civilization is characterized by impact of

media on its structure, value system and outlook. Many

socioeconomic problems, education of masses and social

awakening can best be done by media. Media presently deals with

problems of current importance. Where investigative journalism,

reporting of pertinent and important facts and high lightening

those events which otherwise cannot be noticed occupies prime

position. Due to advent of T.V… a large section of society is now

influenced by media activities to a great extent. It has become a

silent opinion maker and hence it is working on a larger plane than

any other institution. In the current past, media has undertaken

the job of consumer education and fighting against exploitation of

consumers.

Hindrances to the Growth of a Consumer Movement in

India:

1. There is lack of leadership and management. In India, there is

no Ralph Nader who can give a dynamic leadership to this

movement.

2. The majority of the people are illiterate. They lack consumer

education and do not have the necessary consciousness to

organize themselves.


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3. India is a vast country and it is very difficult to have quick,

effective and regular communication among different parts of

the country. Different languages and different customs of

different regions hamper the growth of the movement.

4. To organize the consumer movement throughout the country

needs huge financial resources. Lack of financial resources is a

handicap to the growth of the movement.

5. The attitude of the people is not favourable to the growth of a

consumer movement in India. There is a tendency among the

people to look to the ‘Government for protection and

assistance rather than to stand on their own legs and put up

resistances.

Large Business Houses:

The large business houses especially those who are producing

consumer products must have a consumer affairs cell at the highest

level in their own business organization. This should be made

compulsory by the concerned ministry. To follow the directions

very strictly if necessary ordinance has to be passed. Business

organizations a should regularly provide information in regard to

self-regulatory or consumer protection activities to the media and

that should persuade important newspapers to publish a regular

feature on consumer affairs so as to promote consumer awareness.

Consumer meets should be organized regularly by traders and

business houses on open invitation through advertisements

published in newspapers and customers attending these meets


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should be invited to offer their complaints and suggestions in

regard to the products and services of the company. The concerned

governments should direct all the business houses to organize

meets regularly and should be watched constantly.

Involvement of people at large:

The policies, schemes and programmes of the Government of

India through the Department of Consumer Affairs are no doubt

useful but their effectiveness finally depends on the involvement of

the institutions and the people at large. A number of schemes have

already been in operation such as, Grahak Jagran, consumer clubs

is schools, promoting involvement of research institutions,

universities, colleges etc., in consumer protection and welfare.

Similar programmes and schemes are needed at the State

Government level also to provide further impetus to consumer

movement in the country. Organisations of civil societies are

having special responsibility in this regard.

The efficient and effective programs of consumer protection

are of special significance to all of us because we all are consumers.

Even a manufacturer or provider of service is a consumer of some

other goods or services. If both the producers and consumers

realize the need of coexistence, adulterated products and spurious

goods and other deficiencies in the services would become s thing

of past. The active involvement and participation from all the

stakeholders i.e. the Central and State Governments, the

educational institutions, the NGO’s , the media and the trade and

industry and the citizen’s charter by the service providers are


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necessary to see that the consumers get their due. The need of the

hour is for total commitment to the consumer cause and social

responsiveness to consumer needs. This should, however, be

proceeded in a harmonious manner so that our society becomes a

better place for all of us to live in.

Success of Consumerism:

Globalization and liberalization of trade and business has

resulted in many products and services being available to the

consumers. Growth in economy has resulted in increase in the

purchasing power of the middle class section, which is the largest

segment of the population. This has necessitated giving high

priority for the protection of the consumers and promotion of

responsible consumer movement in the country. Modern

technological growth and complexities of the sellers’ techniques,

existence of a vast army of middlemen and unethical and

untruthful advertisements have aggravated the situation of

consumer exploitation.19 The consumer has to be aware of his

rights and play a key role. The success of consumerism is a strong

function of consumer awareness and to avoid exploitation

consumer must become knowledgeable. Many constitutional

provisions have been made by government to protect the

consumers. Until and unless the consumers avail of these

provisions, the protection of consumer becomes inevitable. There

is a great need to make them aware of their rights and

responsibilities.


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References:

1. P. Venkatesan (2013) - Strengthening The Consumer

Movement - http://pib.nic.in

2. R. K. Nayak (1991) - Consumer Protection Law in India - An

Eco Legal Treatise on Consumer Justice.

3. B.K. Barik (2006) - Consumer Protection in Indian Economy

- In M. Aggarwal (ed.) - Consumer Behavior and Consumer

Protection in India.

4. A. Eiler (1984) - The Consumer Protection Manual, Facts on

File.

5. K. Dhyani and A Saklani (1994) - Awareness of Rights among

Indian Consumers, Indian Journal of Marketing.

6. G. C. Aggarwal (1989) - Consumer Protection in India,

National Seminar on Marketing Challenges in the Nineties.

Department of Commerce, Delhi School of Economics,

University of Delhi.

7. Thanalingham and Kochadai (1989) - An Evolution of

Consumer Awareness - Indian Journal of Marketing.

8. N. Kumar and N. Batra (1990) - Consumer Rights Awareness

and Action in Small Cities - Indian Journal of marketing.

9. J. P. Zend and D. Muraly (1994) - Extent of Consumer

Awareness towards Fraudulent Practice Used by the Sellers

of Household Appliance - Indian Journal of Marketing.

10. Deepti Verma (2013) - Essay on the Consumer Movement in

India (1740 Words) - http://www.shareyouressays.com

11. http://www.cuts-international.org/consumer-rights.htm

12. http://archive.indianexpress.com

13. Amarjit Lal (2013) - Role Of NGO’s In Solving The Problem

Of Consumers: A Case Study Of The Hamirpur Consumer

Protection Organization - Asia Pacific Journal of Marketing

& Management Review Vol.2 (9), September (2013)

http://pib.nic.in

http://www.shareyouressays.com

http://www.cuts-international.org/consumer-rights.htm

http://archive.indianexpress.com


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14. M. B. Shah (1990) - Need for Training Education and creation

of Awareness amongst the Consumers - Paper Presented at

the National Conference on Consumer Protection, Organized

by Ministry of Civil Supplies Consumer Affairs and Public

Distribution, New Delhi.

15. A. S. Khullar (1987) - Consumerism in India, Seminar cum

Orientation Programme on Consumer Education Delhi

Productivity Council Delhi.

16. Bindumadhav Joshi (1995) - Grahak Darshan – Aakhil

Bhartiya Grahak Panchayat, Pune.

17. Ekta Verma (2013) - Role Of Media In Strengthening

Consumerism In Indian Consumer Banking -

http://conference.aimt.edu.in

18. Mehta (19970 - Role of Voluntary Consumer Organization in

Redressal of Consumer Grievances - Unpublished

Dissertation, Submitted Master of Science, University of

Delhi.

19. S. Jamuna (2014) - Consumers’ Awareness and Attitudes

Towards Consumer Protection Act 1986 – A Study with

Reference to Consumers in Virudhunagar District - Indian

Journal Of Applied Research, Vol. 4, Issue 4.

http://conference.aimt.edu.in

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