Consumerism and consumer protection

8/22/2019 Consumerism and consumer protection

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CONSUMERISM AND CONSUMER

PROTECTION


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CONTENTS

1. INTRODUCTION

2. WHAT IS CONSUMERISM?

3. Why Is It Needed

4. Components Of Consumerism

5. Consumer Protection

6. UN Guidelines for Consumer Protection7. Parties involved in Consumer Protection

8. Conclusion

9 Bibliography


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WHO IS A CONSUMER???

Aconsumer is a person or group of people thatare the final users of products and or services

generated within a social system. A consumer

may be a person or group, such as a

household. The concept of a consumer may

vary significantly by context.

A consumer is defined as someone who acquires goods or services for direct use

or ownership rather than for resale or use in production and manufacturing
http://en.wikipedia.org/wiki/Householdhttp://en.wikipedia.org/wiki/Household


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What is Consumerism ?

Consumerism is an organised movement of citizens and government tostrengthen the rights and power of buyers in relation to sellers.

Consumerism refers to the wide range of activities of governmentbusiness and independent organisations designed to protect rights of the

consumers.

Consumerism is a collective consciousness on the part of consumers, business,

government and civil society to enhance consumer satisfaction and social welfare which

will in turn benefit all of them and finally make the society a better place to live in.


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Components of Consumerism:

First and foremost is self-protection by consumer. Consumers'consciousness determines the effectiveness of consumerism.Voluntary Consumer Organisations engaged in organising consumers

and encouraging them to safeguard their interests is another importantelement of consumer movement The success of consumerism lies inthe realisation of the business that there is no substitute for voluntaryself-regulations.

Regulation of business through legislation is one of the importantmeans of protecting the consumers.

Consumerism has over the time developed into a sound force designedto aid and protect the consumer by exerting, legal, moral andeconomic pressure on producers and providers in some of thedeveloped countries.

Consumer needs protection against mal-practices and deceit by sellers.

Consumer should have adequate rights and right of recourse to redressalmeasures against defaulting businessmen.


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In the Indian system, the consumer has six rights given for his

protection from exploitation from the shopkeepers or sellers.

Consumer exploitation means mistreatment or cheating with

consumer by adulteration, Thagi or in any other unfair form.

To prevent consumer from exploitation, government have passed

many Acts from time to time.

Some of them are as follows:-

1. Drug and Cosmetics Act, 1940

2. Prevention of Food Adulteration Act, 1954

3. Essential Commodity (supply) Act, 19554. Monopolies and Restrictive Trade Practices Act, 1969

5. Standard of Weights and Measures Act, 1976

6. Consumer Protection Act, 1986


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Why Is It Needed ?

Demand-supply imbalance (demand > supply / demand < supply)

Lack of workable competition (monopoly > perfect competition)

Unfamiliarity with innovations

(poverty, lack of social awareness, accepting life as it is and passiveoutlook)

Unconsciousness about rights

(illiterate uneducated ignorant and ill-informed)

Feign advertisements (a need for consumer guidance) Time consuming legal process


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How Has It Come About ?

Before Liberalization :-

No Disposable Income

No Rights & Redressal Forums

After Liberalization :-

Informed Consumer

Proactive Steps By Industry & Government


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What It Creates ?

Demand driven economy

Status of king for the Consumer

A more responsive government

Minimize imperfections on distribution front


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How Is It Affecting Us ?

We now have choices.

Regulatory authorities like:

TRAI ASCI

Government have passed many Actsto protect consumers fromexploitation. Some of them are as follows :-

1. Drug and Cosmetics Act, 1940

2. Prevention of Food Adulteration Act, 1954

3. Essential Commodity (supply) Act, 1955

4. Monopolies and Restrictive Trade Practices Act, 19695. Standard of Weights and Measures Act, 1976

6. Consumer Protection Act, 1986


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CONSUMER PROTECTION

Consumer protection consists of laws and organizations designedto ensure the rights of consumers as well as fair trade competitionand the free flow of truthful information in the marketplace.

The laws are designed to prevent businesses that engage in fraud orspecified unfair practices from gaining an advantage overcompetitors and may provide additional protection for the weakand those unable to take care of themselves.

Consumer protection laws are a form ofgovernment regulation which aim to protect the rights

ofconsumers. Consumer protection is linked to the idea of "consumer rights" (that

consumers have various rights as consumers), and to the formationofconsumer organizations, which help consumers make betterchoices in the marketplace and get help with consumer complaints.
http://en.wikipedia.org/wiki/Regulationhttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Regulationhttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Consumer_organizationhttp://en.wikipedia.org/wiki/Consumer_organizationhttp://en.wikipedia.org/wiki/Consumer_complainthttp://en.wikipedia.org/wiki/Consumer_complainthttp://en.wikipedia.org/wiki/Consumer_complainthttp://en.wikipedia.org/wiki/Consumer_organizationhttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Regulation


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The UN Guidelines developing policiesfor consumer protection:

Physical safety;

Promotion and protection of consumers economic interests;

Standards for safety and quality of consumer goods and services;

Distribution facilities for essential consumer goods and services;

Measures enabling consumers to obtain redress;

Education and information programmes;

Promotion of sustainable consumption; and

Measures relating to specific areas like water, food and pharmaceuticals.


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CONSUMER PROTECTION

For effective consumer protection, a

practical response on the part of three

parties:- The Government

Consumer

The Business


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The Government

Government has accorded top priority to'Consumer Education, Consumer Protection

and Consumer Awareness. India is a country,

which has taken a lead in introducing

progressive legislation for consumer protection.

The most important milestone in Consumer

Movement in the country has been the

enactment of the Consumer Protection Act,1986.


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Consumer Protection Act, 1986

The Act enshrines all the consumers rights which are

internationally accepted. As per the Act, consumer

protection councils have been established at Central,

State and District levels to promote and protect the

consumer rights. They are:

Right to Safety

Right to information

Right to Choose

Right to be heard

Right to Seek Redressal

Right to Consumer Education

I d t t d t t th i ht d i t t f i j di i l hi


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In order to promote and protect the rights and interests of consumers, quasi judicial machineryis sought to be set up at district, state and central levels.

The main object of these bodies is to provide speedy and simple redressal to consumer disputes. It is one of the benevolent pieces of legislation intended to protect the consumers at large from

exploitation.

Consumer Protection CouncilsThe Government is authorized by the Act to establish by notification, councils at the Central, State & Districtlevels to be known as Central Consumer Protection Council, Consumer Protection Council & DistrictConsumer Protection Council respectively.

Consumer Disputes Redressal AgenciesIt provides for establishment of consumer disputes redressal forum at district level, state level and central levelsknown as District Forum, State Commission and National Commission. It also makes provisionsregarding the composition, jurisdiction, procedure to be followed by the District forum, State commission &National commission.


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- Government has taken up number of activities and

schemes in creating consumer awareness in the countryas part of this Consumer Awareness Scheme.

Joint CampaignThe slogan Jago Grahak Jago has now become a householdname as a result of the publicity campaign undertaken in thelast 4 years. Through the increased thrust on consumerawareness in the XIth Five Year Plan, the Governmenthas endeavoured to inform the common man of his rights asa consumer. As part of the consumer awareness scheme, therural and remote areas have been given top priority.


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JAGRITI-An initiativetowards making an

informed consumer JAGRITI was organized at

international polytechnic forwomen in New Delhi in

February 2012 for spreadingthe message of consumer

protection.

Consumer AwarenessProgram at New DelhiInstitute of Management,

New Delhi


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Multi Media Publicity Campaign

Publicity through print media using news paper

advertisements, electronic medium by telecast of video on

various consumer related issues such as GrievanceRedressal system, MRP, ISI Hall-Mark, Alternate Dispute,

Redressal system, weights and measures, Rights of

Consumers etc.

Participation in India International Trade FairKeeping in view the large number of visitors to India

International Trade Fair, the Department displayed its

activities through a stall of jago grahak jago. On the spotguidance was also given to consumers during the Trade

Fair.


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OFFICE OF FAIR TRAIDING (OFT) The OFT is theUK's consumer and competition authority. The OFT

regularly runs campaigns in partnership with other

organisations such as local authority Trading

Standards Services and Citzens Advice consumer

service to raise business and consumer awareness

on a variety of different issues.


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Yamuna Expressway Aid Compaign to makeconsumer aware about their safety while driving.
http://localhost/var/www/apps/conversion/tmp/scratch_2/Jaypee_Group_s_Yamuna_Expressway_ad_campaign.mp4http://localhost/var/www/apps/conversion/tmp/scratch_2/Jaypee_Group_s_Yamuna_Expressway_ad_campaign.mp4http://localhost/var/www/apps/conversion/tmp/scratch_2/Jaypee_Group_s_Yamuna_Expressway_ad_campaign.mp4http://localhost/var/www/apps/conversion/tmp/scratch_2/Jaypee_Group_s_Yamuna_Expressway_ad_campaign.mp4http://localhost/var/www/apps/conversion/tmp/scratch_2/Jaypee_Group_s_Yamuna_Expressway_ad_campaign.mp4http://localhost/var/www/apps/conversion/tmp/scratch_2/Jaypee_Group_s_Yamuna_Expressway_ad_campaign.mp4http://localhost/var/www/apps/conversion/tmp/scratch_2/Jaypee_Group_s_Yamuna_Expressway_ad_campaign.mp4


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West Bengal Government has launchednew portal for Consumers Affairs. Theportal has been made to make you

knowledgeable regarding Consumerprotection laws and to lodge yourcomplaints online, by filling-up a simpleregistration form.

The portal has step-by-step guide tolodge online complaints, relateddepartments, publications, contactnumbers of officials as well as lots ofinformative PDF formatted documents

to make you knowledgeable regardingKhadya Dushanfood adulteration,Standard marks, Upovokta SahaikaConsumer affairs know howetc.

Portal: http://wbconsumers.gov.in/ whow etc.
http://wbconsumers.gov.in/http://wbconsumers.gov.in/


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CONSUMER NGOs IN INDIA

Consumer Guidance Society of India

Consumer Guidance Society of India (CGSI) was

founded in 1966 to eliminate all possible forms of

consumer exploitation. CGSI has been instrumental

in promoting consumerism by publishing its flagship

monthly periodical "Keemat", performing product

testing, providing consumer education at the grass

root level such as schools, and giving legal guidanceto consumers with grievances.


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Association for Consumers Action on Safety

and Health

Association for Consumers Action on Safety and Health

(ACASH) is a consumer organization that focuses on health-

related consumer issues. It has programs aimed at the

general public promoting consumer rights and overall

dispersion of information regarding consumer safety.

Founded by a group of doctors, lawyers and other eminent

personalities, ACASH today helps consumers in India

through education & awareness, training, developing IEC(Information, Education and Communication) material,

networking, advocacy and lobbying and follow-up action.

C U it d T t S i t


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Consumer Unity and Trust Society

Consumer Unity and Trust Society (CUTS) originated from a

rural background in Rajasthan. It operates five program

centers in India, an advocacy center in New Delhi, and

resource centers in several international locations. CUTS's

consumer work is focused on consumer protection and

consumer safety. It publishes a monthly 'Gram Gadar'

which has been effective in ensuring justice for oppressed

social masses.


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Consumers' Forum

Consumers' Forum is one the consumer

organizations that existed in India long beforethe Consumer Protection Act 1986 was

passed. The mission of the organization, at its

start, was to promote consumerism by making

aware, training and educating the consumers

on their rights.


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Mumbai Grahak PanchayatMumbai Grahak Panchayat (MGP), or Bombay

Consumer Forum, started as an agitation against theincrease of consumer prices near festival season for fairand free distribution of consumer goods. MGP promotesconsumerism by bringing the consumer to the forefront of

the logistics and supply chain of consumer goods asdecision makers, executors and monitors. MGP's primaryobjectives include organizing the consumers for commoncauses, educating them and protecting consumer interest

through legal and other means.


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Grahak ShaktiGrahak Shakti works towards creating consumer

awareness by organizing various programs, streetplays and on shows such as Hello Geleyere. Theorganization has undertaken a number of surveyslike the one on spurious drugs in coordination

with the Drugs Control DepartmentGovernment of India. Its campaign on credit cardsand effective liaison with the regulator was aneffective way to warn the erring bankers to conductbusiness ethically.


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The Business The business ,comprising the producers and all the element

of the distribution channels.

Eg:- AKSHAYA It has grown into one of the most

respected real estate companies in the state, reputed for its

transparent business practices and innovation. Akshaya

launch a consumer awareness initiative called "Akshaya

Home Facts" through which the customers are educated on

all the nuances involved in purchase of real estate property.


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Currently, the Financial Consumer Agency of Canada

(FCAC) undertakes a number of financial literacy initiatives,focusing mainly on the creation of tools, programs and

publications to build awareness and develop the financial

literacy of Canadians. These regulations limit business

practices that are not beneficial to consumers and require theprovision of clear and timely information to Canadians about

credit products,


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CONCLUSION Invariably, consumers are a vulnerable lot for exploitation,

more so in a developing country with the prevalence of masspoverty and illiteracy.

India too is no exception to it. Instances like overcharging,black marketing, adulteration, profiteering, lack of properservices in trains, telecommunication, water supply, airlines,etc are not uncommon here.

From time to time, the government has attempted tosafeguard consumer's interests through legislations and theCPA 1986 is considered as the most progressive statute forconsumer protection.

However, consumer awareness through consumer educationand actions by the government, consumer activists, andassociations are needed the most to make consumerprotection movement a success in the country.


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BIBLIOGRAPHY BOOK:-

BUSINESS ENVIRONMENT (Francis Cherumlam) INTERNET SITES:-

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awareness-222.asp

http://www.oft.gov.uk/OFTwork/consumer-protection/

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