CONSUMERISM AND CONSUMER PROTECTION

CONTENTS
1. 2. 3. 4. 5. 6. INTRODUCTION WHAT IS CONSUMERISM? Why Is It Needed Components Of Consumerism Consumer Protection UN Guidelines for Consumer Protection

7.
8. 9

Parties involved in Consumer Protection

Conclusion Bibliography

WHO IS A CONSUMER???
A consumer is a person or group of people that are 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

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

Consumerism refers to the wide range of activities of government business 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.

 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 important element of consumer movement The success of consumerism lies in the realisation of the business that there is no substitute for voluntary self-regulations. Regulation of business through legislation is one of the important means of protecting the consumers. Consumerism has over the time developed into a sound force designed to aid and protect the consumer by exerting, legal, moral and economic pressure on producers and providers in some of the developed countries.

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

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

 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, 1955 4. Monopolies and Restrictive Trade Practices Act, 1969 5. Standard of Weights and Measures Act, 1976 6. Consumer Protection Act, 1986

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 passive outlook) Unconsciousness about rights (illiterate uneducated ignorant and ill-informed) Feign advertisements (a need for consumer guidance) Time consuming legal process

How Has It Come About ?

Before Liberalization : No Disposable Income No Rights & Redressal Forums

After Liberalization : Informed Consumer Proactive Steps By Industry & Government

What It Creates ?
Demand driven economy Status of king for the Consumer A more responsive government Minimize imperfections on distribution front

How Is It Affecting Us ?
We now have choices. Regulatory authorities like: TRAI ASCI Government have passed many Acts to protect consumers from exploitation. 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, 1969 5. Standard of Weights and Measures Act, 1976 6. Consumer Protection Act, 1986

CONSUMER PROTECTION
Consumer protection consists of laws and organizations designed to ensure the rights of consumers as well as fair trade competition and the free flow of truthful information in the marketplace. The laws are designed to prevent businesses that engage in fraud or specified unfair practices from gaining an advantage over competitors and may provide additional protection for the weak and those unable to take care of themselves. Consumer protection laws are a form of government regulation which aim to protect the rights of consumers. Consumer protection is linked to the idea of "consumer rights" (that consumers have various rights as consumers), and to the formation of consumer organizations, which help consumers make better choices in the marketplace and get help with consumer complaints.

The UN Guidelines developing policies for 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.

CONSUMER PROTECTION
For effective consumer protection, a practical response on the part of three parties: The Government Consumer The Business

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.

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

 In order to promote and protect the rights and interests of consumers, quasi judicial machinery is 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 Councils The Government is authorized by the Act to establish by notification, councils at the Central, State & District levels to be known as Central Consumer Protection Council, Consumer Protection Council & District Consumer Protection Council respectively.
Consumer Disputes Redressal Agencies It provides for establishment of consumer disputes redressal forum at district level, state level and central levels known as District Forum, State Commission and National Commission. It also makes provisions regarding the composition, jurisdiction, procedure to be followed by the District forum, State commission & National commission.

 Government has taken up number of activities and schemes in creating consumer - awareness in the country as part of this Consumer Awareness Scheme. Joint Campaign
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 of his rights as a consumer. As part of the consumer awareness scheme, the rural and remote areas have been given top priority.

 JAGRITI-An initiative towards making an informed consumer

JAGRITI was organized at international polytechnic for women in New Delhi in February 2012 for spreading the message of consumer protection. Consumer Awareness Program at New Delhi Institute of Management, New Delhi

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 Grievance Redressal system, MRP, ISI Hall-Mark, Alternate Dispute, Redressal system, weights and measures, Rights of Consumers etc.

Participation in India International Trade Fair

Keeping 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 spot guidance was also given to consumers during the Trade Fair.

 OFFICE OF FAIR TRAIDING (OFT) The OFT is the UK'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.

 Yamuna Expressway Aid Compaign to make consumer aware about their safety while driving.

 West Bengal Government has launched new portal for Consumers Affairs. The portal has been made to make you knowledgeable regarding Consumer protection laws and to lodge your complaints online, by filling-up a simple registration form. The portal has step-by-step guide to lodge online complaints, related departments, publications, contact numbers of officials as well as lots of informative PDF formatted documents to make you knowledgeable regarding Khadya Dushan food adulteration, Standard marks, Upovokta Sahaika Consumer affairs know howetc. Portal: http://wbconsumers.gov.in/ w how etc.

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 guidance to consumers with grievances.

 Association for Consumers Action on Safety and Health

Association for Consumers Action on Safety and Health (ACASH) is a consumer organization that focuses on healthrelated 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.

 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.

 Consumers' Forum Consumers' Forum is one the consumer organizations that existed in India long before the 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.

 Mumbai Grahak Panchayat

Mumbai Grahak Panchayat (MGP), or Bombay Consumer Forum, started as an agitation against the increase of consumer prices near festival season for fair and free distribution of consumer goods. MGP promotes consumerism by bringing the consumer to the forefront of the logistics and supply chain of consumer goods as decision makers, executors and monitors. MGP's primary objectives include organizing the consumers for common causes, educating them and protecting consumer interest through legal and other means.

 Grahak Shakti
Grahak Shakti works towards creating consumer awareness by organizing various programs, street plays and on shows such as Hello Geleyere. The organization has undertaken a number of surveys like the one on spurious drugs in coordination with the Drugs Control Department Government of India. Its campaign on credit cards and effective liaison with the regulator was an effective way to warn the erring bankers to conduct business ethically.

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.

 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 the provision of clear and timely information to Canadians about credit products,

CONCLUSION
Invariably, consumers are a vulnerable lot for exploitation, more so in a developing country with the prevalence of mass poverty and illiteracy. India too is no exception to it. Instances like overcharging, black marketing, adulteration, profiteering, lack of proper services in trains, telecommunication, water supply, airlines, etc are not uncommon here. From time to time, the government has attempted to safeguard consumer's interests through legislations and the CPA 1986 is considered as the most progressive statute for consumer protection. However, consumer awareness through consumer education and actions by the government, consumer activists, and associations are needed the most to make consumer protection movement a success in the country.

BIBLIOGRAPHY
BOOK:BUSINESS ENVIRONMENT (Francis Cherumlam) INTERNET SITES: http://www.nationalconsumerhelpline.in/DataFiles/jagriti-IPW.pdf http://akshayahomes.indiaproperty.com/index.php http://www.onestopias.com/ias-articles/indian-administrativeservices/details/%E2%80%98jago-grahak-jago%E2%80%99%E2%80%93-an-initiative-towards-consumer-education-andawareness-222.asp http://www.oft.gov.uk/OFTwork/consumer-protection/ http://www.centralchronicle.com/godrej-appliances-launcheslargest-consumer-initiative-on-green.html http://www.espreson.com/news-of-india/west-bengal-governmentsnew-online-initiative-for-consumers-affairs/