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Chapter No. 03: Role and Importance of Consumer Movements

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Chapter No. 03: Role and Importance of Consumer Movements Chapter No. 03: Role and Importance of Consumer 2014 Movements. 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 A Study of Consumer Movement in Selected Districts of Maharashtra. Page 99 Chapter No. 03: Role and Importance of Consumer 2014 Movements. 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’ A Study of Consumer Movement in Selected Districts of Maharashtra. Page 100 Chapter No. 03: Role and Importance of Consumer 2014 Movements. 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 A Study of Consumer Movement in Selected Districts of Maharashtra. Page 101 Chapter No. 03: Role and Importance of Consumer 2014 Movements. 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. A Study of Consumer Movement in Selected Districts of Maharashtra. Page 102 Chapter No. 03: Role and Importance of Consumer 2014 Movements. 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 A Study of Consumer Movement in Selected Districts of Maharashtra. Page 103 Chapter No. 03: Role and Importance of Consumer 2014 Movements. 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. A Study of Consumer Movement in Selected Districts of Maharashtra. Page 104 Chapter No. 03: Role and Importance of Consumer 2014 Movements. The interests of the consumer can be protected by making more stringent laws and making the enforcement machinery perform its function honestly and diligently.
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