Consumer in Arthashastra ( Consumer Rights Awareness )

Consumer in Arthashastra

·         The Code for the consumer movement is as old as trade and commerce itself.

·         Arthashastra - considerable references to protection of consumers and protection against malpractices and exploitation by trade and industry.

·         Also great insight on the problems of short weighment and measures as well as education.

·         Kautilya recognized the need for punishment for these offences.

·         It can thus be seen that problems that we are tackling today existed many centuries back.

Gandhiji in the light of the above rightly said about consumer and his rights as the following:

“A customer is the most important visitor on our premises. He is not dependent on us. We are dependent on him. He is not an interruption in our work - he is the purpose of it. We are not doing him a favour by serving him. He is doing us a favour by giving us the opportunity to serve him.”

An enlightened consumer is an empowered consumer.

An aware consumer not only protects himself from exploitation but induces efficiency, transparency and accountability in the entire manufacturing and services sector.

Realizing the importance of consumer awareness, 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.

Problems faced by a Consumer

·         Deceptive practices of Marketing-Pricing, Promotion and Packaging

·         High Prices- profiteering and exploitation of consumer due to high cost of distribution, advertising and promotion costs

·         High costs of Distribution – due to too many intermediaries.

·         Shoddy or Unsafe Products- lack of requisite quality and poor service

·         Product Safety – poor quality control

·         Harmful and Low benefit Products – from genetically developed products to products that lack of nutritional value like noodles, potato chips and junk food

·         Poor service to the Disadvantaged – who became victims. In rural areas due to lack of knowledge spurious products were sold as original

The most important milestone in Consumer Movement in the country has been the enactment of the Consumer Protection Act, 1986.

The Act has set in motion a revolution in the field of consumer rights, that perhaps cannot be paralleled anywhere else in the World. The Act applies to all goods and services unless specially exempted by the Central Government, in all sectors whether Private, Public or Co-operative.

Consumer Protection Act, 1986 (COPRA)

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: To be protected against the sale of goods and services which are spurious/ hazardous to life.

· Right to information: To know the quality, quantity, weight and the price of goods/services being paid for, so that one is not cheated by unfair trade practices.

· Right to Choose: To be assured, wherever possible, access to a variety of goods and services at competitive prices.

· Right to be heard: To be heard and to be assured that the interest would receive due consideration at appropriate fora.

· Right to Seek Redressal: To seek legal redressal against unfair or restrictive trade practices or exploitation.

· Right to Consumer Education: To have access to consumer education.

It was therefore most appropriate that the Consumer Protection Act, 1986 was processed and enacted in India soon after the UN declaration.

Basic Framework for Consumer Protection

Consumer  Protection initiatives by the Government hinge on 3 basic parameters.

·         Firstly ensuring a legal framework that comprises of Consumer Protection Act. The Consumer Protection Act enacted in 1986 has been recognised as one of the finest basis of legislation enacted in any part of the world and India can boast of being the only country having such specialised legislation for consumer protection. The CPA has a three tier, simple, quasi judicial machinery at the National, State and District level for hearing cases raised by consumers.

·         Secondly, evolving standards for different products to enable the consumers to make an informed choice about different products. Standard could be on technical requirement (specifications), improved specific standard terminology (glossary of terms), codes of practice or test methods or management systems standards

·         Thirdly, consumer awareness and education is the main building block for consumer protection.

The slogan ‘Jago Grahak Jago’ has now become a household name as a result of the publicity campaign undertaken in the last 4 years.  Through the increased thrust on consumer awareness in the XIth  Five Year Plan, the Government has endeavoured to inform the common man as consumer of his rights as well as Grievance Redressal Mechanism.  As part of the consumer awareness scheme, the rural and remote areas have been given top priority. Also government has allotted some funds for this awareness program in XIIth plan.

Consumer Redressal Forums

To provide Cheap, Speedy and simple redressal to consumer disputes, quasi-judicial machinery is setup at each District, State and National Levels called District Forums, State Consumer Disputes Redressal Commission and National Consumer Disputes Redressal Commissionrespectively. National Commission was headed by Sitting Retired Judge of Supreme Court.

COPRA 1986 (amendment ) 2011

As you know why the COPRA 1986 was ineffective-Lack of Awareness, Illiteracy, Lengthy and Delay process etc.

This is intended to deter willful offenders and also to ensure speedy and proper execution of the order of the consumer forums. Few Important amendments :

·         Delay in complying with the orders of consumer courts could invite a fine of Rs 500, or 1.5 per cent  of the amount of penalty..

·         it also proposes to increase the period of experience for appointment as member in the case of State Commission from 10 years to 20 years and in the case of National Commission from 10 years to 30 years to improve the quality of judges.

·         The Bill permits online filing of complaints and use of e-governance applications for speedy disposal of cases

·         It provides an order of the District Forum/State Commission/ National Commission will be enforced as a decree of a Civil Court.

Road Map Ahead

·         CONFONET Project:    A project titled Computerisation and Computer Networking of consumer fora in the country is being executed on a turnkey basis by the National Informatics Centre.  Under this scheme the consumer fora on all the three tiers would be fullycomputerised and interconnected enabling them to access information leading to quicker disposal of cases.

·         Time Bound Disposal Of Cases (as in 2011 amendment)

·         Awareness Expansion :The slogan ‘Jago Grahak Jago’ has now been well established and through multi media publicity campaign revolving around this theme Government has endeavoured to inform the common man of his rights as a consumer.

·         Consumer Clubs:  The scheme for setting up of consumer clubs in schools and colleges have been introduced to make the youngsters aware of their rights as a consumer. 

·         Private Public Partnership:  Role of academic and consumer organisations as well as the NGOs is therefore to educate and involve the consumers in the movement.  Therefore, they have been given a prominent role in the Consumer Protection Act itself to take up cases on behalf of consumers which could be of an individual or a group of consumers.  In fact CPA is a unique piece of legislation wherein it introduced the concept of what later came to be known more popularly as the PIL.

·         Alliance With FICCI :Various programmes have been undertaken under the Consumer Welfare Fund to strengthen the consumer movement in the country. 

·         Consumer Helpline (NCH)   To advise the consumers on the various issues concerning consumer protection a ‘National Consumer Helpline’ is being operated through the University of Delhi with the support of Department of Consumer Affairs

·         Strengthening Of Infrastructure

·         Thrust On Standardisation like ISI standards

·         Responsibilities of Consumer which is final and vital

By  Syed Salim Malik

Sources :

1. http://www.archive.india.gov.in/sectors/consumer_affairs/index.php?id=9
2. http://pib.nic.in/newsite/erelease.aspx?relid=34182
3. http://www.thehindu.com/news/national/dodging-consumer-court-orders-will-attract-fine/article2778368.ece
4. http://www.indianexpress.com/news/consumer-act-to-get-penalty-power/895692/0
5. Yojana Feb 2009