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
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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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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
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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.
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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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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.
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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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Page 107 Chapter No. 03: Role and Importance of Consumer 2014 Movements. 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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Page 108 Chapter No. 03: Role and Importance of Consumer 2014 Movements. 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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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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Page 114 Chapter No. 03: Role and Importance of Consumer 2014 Movements. 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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Page 121 Chapter No. 03: Role and Importance of Consumer 2014 Movements. 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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Page 124 Chapter No. 03: Role and Importance of Consumer 2014 Movements. 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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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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Page 129 Chapter No. 03: Role and Importance of Consumer 2014 Movements. 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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Page 130 Chapter No. 03: Role and Importance of Consumer 2014 Movements. 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)
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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.
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