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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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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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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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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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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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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competitive prices, and fair hearing by government in the

formulation of consumer policy.

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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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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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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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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highlighting landmark judgments on consumer issues, even

fighting on behalf customers, adequate coverage to seminars and
conferences on consumer issues, providing consumer information
through various media.

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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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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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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14. M. B. Shah (1990) - Need for Training Education and creation

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