IJER © Serials Publications

12(2), 2015: 257-263

ISSN: 0972-9380

PRESENT STATUS OF CONSUMER

MOVEMENT IN INDIA

Abstract: 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. 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’ interest and grant them the right to choice, safety, information and redressal.
This paper discusses critically the basic concept of consumer movement or consumerism
and consumer, status of consumer movement, role of government and three tier consumer
grievances machinery, consumer rights, responsibilities and remedies available to consumers
as per the consumer protection act of 1986 and how to strengthen consumer movement in
India.
Key Words: Consumer Movement, Consumerism, Consumer, Consumer Rights and
Responsibilities.

1. INTRODUCTION
Consumer movement or consumerism is a social movement. In the past, all movements,
such as, Independence Movement, Civil Rights Movements, etc. were the results of
social conflicts. So also consumer movement which is likely to be with us till the conflict
facing the consumer is resolved. The social conflict, in the case is largely owing to
rising prices, poor product, shortage, deceptive advertising, etc. On the other side in
USA greater education and affluence of the buyers, better communication, mass
marketing and above all, the failure of business to implement the marketing concept

* Professor of Mathematics, Sathyabama University, Chennai – 600 119

** Professor and Hea d, DO MS, Jeppia ar Engineering College , Chenna i – 6 00 11 9, E-mails:
[email protected], [email protected]
258 R. Rajeswari and N. Thangavel

resulted in consumerism raising its head in the 1960’s. The Watchword for this new
militant mood among the American consumers was simply “Let the seller beware, in
comparison with the age-old caveat emptor” i.e. Let the buyer beware. Government’s
desire to protect the consumers and help them to arrive at rational decisions in their
selection resulted in excessive control and insistence on adequate communication to
the consumer such as the advertising pack the statement indicating that smoking may
cause cancer. Thus increasing education and sophistication led to rising public
standards of business conduct and social responsibility through consumer unrest. This
was augmented in 1966 by rising prices. In the West, consumerism has emerged after
the countries concerned, reached a level of affluence which is the characteristic of
what may be called the post-industrial society. There was adequate production and
distribution of essential as well as luxury products. The objectives of consumerism
under these circumstances were to seek more information about the merits of
competing products and services and to represent the collective views of consumers
in order to influence the producers. The consumer movement in India is in its infancy.

2. BASIC CONCEPT OF CONSUMER

Consumer is the centre of all economic activities. In our Indian culture, Philosophers
and Thinkers have thought consumer as a God. He is a kingpin of any democracy. But
unfortunately the Indian consumer has always been neglected in our economy because
of many reasons. Any individual who purchases products or services for his personal
use and not for manufacturing or resale is called a consumer. A consumer is one who
is the decision maker whether or not to buy an item at the store, or someone who is
influenced by advertisement and marketing. Every time someone goes to a store and
buys a shirt, toy, beverage or anything else, they make a decision as a consumer.
Consumer refers to any person who purchases some goods for a consideration that
has been either paid or promised to pay or partly paid and partly promised, or found
under any system of deferred payment and does include any user of this type of goods
other than the person who purchases these types of goods for consideration paid or
promised or partly paid or partly promised, or under any type of system of deferred
payment when this type of use is done with the agreement of such person, and does
not include a person who gets such goods for resale or for any business purpose or
hires or avails of some services for a consideration which has been paid or promised
or partly paid and partly promised, or under some system of deferred payment as
well as includes some beneficiary of such services other than the people who ‘hire or
avail of the services for consideration paid or promised, or partly paid and partly
promised, or under any system of deferred payment, when such services are provided
having the approval of the first described person and does not include a person who
takes such services for any business purposes.
Mahatma Gandhi, the father of nation, very rightly held that “A Consumer is
the most important visitor on our premises. He is not dependent on us we are on him.
He is not an interruption to our work; he is the purpose of it. We are not doing a
Present Status of Consumer Movement in India 259

favour to a consumer by giving him an opportunity. He is doing us a favour by giving

an opportunity to serve him.” In spite of these views consumerism is still in its infancy
in our country, thanks to the seller’s market and the government monopoly in most
services. Consumer awareness is low due to the apathy and lack of education among
the masses. No one has told them about their rights- to be informed about product
quality, price, protection against unsafe products, access to variety of goods at
competitive prices, consumer education etc. What consumers lack here are education
and information resources, testing facilities, competent leadership, price control
mechanism, and adequate quasi-judicial machinery. The providers of goods and
services have been reluctant to give due consideration to consumer interest protection.

3. STATUS OF CONSUMER MOVEMENT

The consumer movement in India is as old as trade and commerce itself. Even in
Kautilya’s Arthashastra, there are references to the concept of protection of
consumers against the exploitation by trade and industry, under 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.

4. ROLE OF GOVERNMENT
A separate Department of Consumer Affairs was created in 1997 to act as the nodal
outfit in the Central Government for promoting and protecting the welfare of
consumers. It seeks to do this in various ways such as ensuring availability of essential
commodities at reasonable prices including monitoring of prices, formulating standards
of goods and services, regulation of weighing and measuring instruments and pre-
packed commodities and providing a legislative framework for safeguarding
consumers’ interests and establishment of machinery for redressal of consumer
complaints. To meet these objectives the Department has been undertaking various
measures involving all concerned to strengthen the consumer movement in the country.
Some of the important measures being taken to strengthen the consumer movement
include initiating multimedia publicity programmes to educate the consumers,
providing financial assistance through consumer welfare fund to the NGOs and State
Governments to generate consumer awareness, setting up of district information
centres to guide the public, national awards on consumer protection to encourage
outstanding work by women and youth, observing national and World Consumer
Rights Day to remind the consumers to be vigilant, interactions with various interests
through Central and State Consumer Protection Council to promote and protect the
rights of the consumers, formulation of citizens’ charters containing their entitlements
260 R. Rajeswari and N. Thangavel

to public services, standards of performance and redressal of grievances for providing

an efficient and responsive administration.

5. CONSUMER PROTECTION ACT, 1986

One of the most important milestones in the consumer movement in the country has
been the enactment of the Consumer Protection Act, 1986 to better protect the interest
of the consumers. This has revolutionized consumer rights. It is one of the most
progressive and comprehensive pieces of socio-benevolent legislation covering all
goods and services. The Act provides for a separate three-tier quasi-judicial consumer
dispute redressal machinery, popularly known as consumer courts, at the national,
state and district levels to provide simple, speedy and free redressal against consumers’
complaints. Filing of a simple complaint on plain paper with the details of the case
with supporting documents seeking relief or compensation is enough and it is not
obligatory to engage a lawyer. According to the objects and purposes of the Consumer
Protection Act, these quasi-judicial bodies observe the principles of natural
justice while adjudicating consumer complaints against defective goods, deficient
services and restrictive and unfair trade practices through summary trials. The Act
applies to all goods and services and covers all sectors, whether private, public or
cooperative.

6. THREE TIER CONSUMER GRIEVANCES MACHINERY UNDER THE

CONSUMER PROTECTION ACT
6.1. District Forum
District forum consists of a president and two other members. The president can be a
retired or working judge of District Court. They are appointed by state government.
The complaints for goods or services worth Rs 20 lakhs or less can be filed in this
agency. The agency sends the goods for testing in laboratory if required and gives
decisions on the basis of facts and laboratory report. If the aggrieved party is not
satisfied by the jurisdiction of the district forum then they can file an appeal against
the judgment in State Commission within 30 days by depositing Rs 25000 or 50% of
the penalty amount whichever is less.

6.2. State Commission

It consists of a president and two other members. The president must be a retired or
working judge of high court. They all are appointed by state government. The
complaints for the goods worth more than Rs 20 lakhs and less than Rs 1 crore can be
filed in State Commission on receiving complaint the State commission contacts the
party against whom the complaint is filed and sends the goods for testing in laboratory
if required. In case the aggrieved party is not satisfied with the judgment then they
can file an appeal in National Commission within 30 days by depositing Rs 3500 or
50% of penalty amount whichever is less.
Present Status of Consumer Movement in India 261

6.3. National Commission

The national commission consists of a president and four members one of whom shall
be a woman. They are appointed by Central Government. The complaint can be filed
in National Commission if the value of goods exceeds Rs 1 crore. On receiving the
complaint the National Commission, informs the party against whom complaint is
filed and sends the goods for testing if required and gives judgment. If aggrieved
party is not satisfied with the judgment then they can file a complaint in Supreme
Court within 30 days.

7. RIGHTS AND RESPONSIBILITIES OF CONSUMERS

7.1. Consumer Rights
It is referred to as
1. The Right to Safety and protection from hazardous goods or services.
2. The Right to be Informed and protected against deceitful, fraudulent or
information that misleads and have an access to correct information as well as
facts required to go for informed choices along with decisions.
3. The Right to Choose and have easy access to different types of products and
services offered at competitive and fair prices.
4. The Right to be Heard helps to express and represent interests of consumer in
the making of political and economic decisions.
5. The Right to Redress and getting compensation for misrepresentation,
unsatisfactory services or shoddy goods is important for consumers
6. The Right to Consumer Education helps the consumer to become informed
and capable of functioning properly in the market.
7. The Right to a Healthy Environment enhances the quality of life and gives
protection from environmental issues for present as well as future generations.

7.2. Consumer Responsibilities

It is referred to as
1. The responsibility of having awareness of the quality and safety of goods and
services while purchasing.
2. The responsibility to collect information available about a product or service
and to update oneself with changes or innovations taking place in the market.
3. The responsibility to think as well as make choices independently and
consider immediate needs and wants.
4. The responsibility to speak out, and to inform manufacturers and
governments of needs and wants.
262 R. Rajeswari and N. Thangavel

5. The responsibility to complain or inform business along with other people

about discontentment with a product or service in an honest way.
6. The responsibility of being an Ethical Consumer and be fair and not engage
not in malpractices which make all consumers pay.

8. REMEDIES AVAILABLE TO CONSUMER

1. To remove the defect pointed out by the appropriate laboratory from the goods.
2. To replace the goods with the new goods of similar description, which are free
from similar defects.
3. To return the price of the charges paid by the complainant.
4. To pay such amount as compensation to the consumer for any loss or injury
suffered by the consumer due to the negligence of the opposite party.
5. To remove the defects of deficiencies in the services in question.
6. To discontinue the unfair trade practice or the restrictive trade practice or not to
repeat.
7. To withdraw the hazardous goods from being offered for sale.
8. To provide for adequate costs to parties.

9. WORLD CONSUMER RIGHTS DAY

The International Consumer movement observes 15th March as the World Consumer
Rights Day. It was on this day during 1962 that the then American President, John F
Kennedy gave an overall structure to the consumer rights. It is during the WCRD that
the roles and the rights of the consumer are explained, insisting that these are given
due respect and to fight against the wrong doings and injustice meted out to them by
the market. The Word Consumer Right Day was first observed during 15th March
1983 and since then it has become a very important day in terms of gathering citizens
and insisting them to lend their voice towards their rights. The National Consumer
movement observes 24th December as the National Consumer day.

10. CONCLUSION
There are various components of consumerism. First and foremost is self-protection
by consumers. Consumer must be aware of his rights, raise voice against exploitation
and seek redressal of his grievances. Consumers’ consciousness determines the
effectiveness of consumerism. It is the duty of the consumer to identify his rights and
to protect them. Voluntary Consumer Organizations engaged in organizing consumers
and encouraging them to safeguard their interests is another important element of
consumer movement. The success of consumerism lies in the realization of the business
that there is no substitute for voluntary self-regulations. Little attention from the
Present Status of Consumer Movement in India 263

business will not only serve consumers interest but will also benefit them. Some
businesses in India have come together to adopt a code of conduct for regulating their
own activities. 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. The success
of the consumer movement mainly depends upon the level of consumer awareness
around the country. The Government can only be playing the role of a facilitator or
catalyst. The growth of consumer movement is a voluntary effort involving the
participation of one and all. Only alert consumers can protect themselves and the
society.

10.1. Consumer Alerts

Register for Consumer Alerts & Discussion Group. Civil Supplies and Consumer
Protection department will keep you informed of latest alerts from key Government
agencies in India as well as international agencies on products that are spurious,
hazardous or scams that consumers need to beware of.
Web- http://consumer.tn.gov.in/registeryahoo.html.

10.2. Complaints and Contacts

Government of Tamil Nadu, Civil Supplies & Consumer Protection Department,
Ezhilagam, Chennai-5, Phone: 044-28583222 / 28583422, Web: www.consumer.tn.gov.in,
E. mail: [email protected]

References
Consumerism (2008), Britannica Concise Encyclopedia Online.
Durning AT (1992), How Much is Enough: The Consumer Society and the Future of the Earth.
W Norton & Company Incorporated, New York, USA.
Gandhi JC (1990), Marketing - A Managerial Introduction. TMH, New Delhi, India.
Hall S, Winlow S, Ancrum C (2008) Criminal Identities and Consumer Culture: Crime,
Exclusive and the New Culture of Narcissism. Routledge, London, UK.
Dominquez J, Robin V (2008), Your Money or Your Life. Penguin Group, New York, USA.
Majfud J (2009), The Pandemic of Consumerism. UN Chronicle.
Ryan MT (2007), Consumption. The Blackwell Encyclopedia of Sociology, Blackwell
Publishing, 701-705.
Sahoo SC, Sinha PK (1991), Emerging Trends in Indian Marketing in the 90s. Academic
Foundation, New Delhi, India.
Sherlekar SA, Gordon E. (1993), Marketing Management. Himalaya, New Delhi, India.