Chapter 5: Consumer Rights

We take part in the market as producers and as consumers. Consumers buy the final goods and services they need. Individual consumers are often in a weak position: when there is a complaint, the seller tries to put the blame on the buyer, as if the seller has no responsibility once the sale is over. Exploitation happens through unfair trade practices such as giving less weight than due, adding charges that were not told earlier, and selling adulterated or defective goods. Markets also do not work fairly when producers are few and powerful and consumers buy small amounts and are scattered. So rules and regulations are needed to protect consumers.

Earlier, when a consumer was unhappy with a brand or a shop, he or she just stopped buying it, and it was presumed that the consumer must be careful. The consumer movement arose out of dissatisfaction with unfair practices when no legal system protected consumers. In India it began in an organised form in the 1960s because of food shortages, hoarding, black marketing and adulteration of food and edible oil. Till the 1970s, consumer groups mostly wrote articles, held exhibitions and watched ration shops. In 1985 the United Nations adopted the UN Guidelines for Consumer Protection, and Consumers International became an umbrella body of over 200 organisations from over 100 countries. In 1986 India passed the Consumer Protection Act (COPRA), amended in 2019.

Consumers have the right to safety: protection against marketing of goods and delivery of services that are hazardous to life and property. Producers must follow safety rules, and public or government action is needed to see that quality is maintained. Consumers also have the right to information about goods and services they buy, such as ingredients, price, batch number, date of manufacture, expiry date and the maker's address. If a product proves defective, they can then complain and ask for replacement or compensation. Goods must not be sold at more than the MRP, the maximum retail price printed on the pack. In 2005 India passed the Right to Information (RTI) Act, which gives citizens information about the working of government departments.

The right to choose means a consumer can decide whether to buy or continue a service, and cannot be forced to buy other items along with the main one. The right to redressal means a consumer can seek justice against unfair trade practices and can get compensation depending on the degree of damage. Under COPRA there is a three-tier machinery of Consumer Disputes Redressal Commissions: the District Commission for claims up to Rs 1 crore, the State Commission for claims between Rs 1 crore and Rs 10 crore, and the National Commission for claims above Rs 10 crore (as given in the textbook). A case dismissed at one level can be appealed at the next. A consumer can file a case with or without a lawyer, in person or online.

COPRA gives every consumer six rights: the right to choice, the right to information, the right to redressal, the right to representation, the right to safety and the right to consumer education. The right to representation means consumers can put their case before the commissions. Consumer forums or consumer protection councils guide consumers on filing cases and sometimes represent them; they are voluntary organisations that also get government money for awareness. Residents' Welfare Associations take up unfair practices on behalf of members. COPRA also led to Departments of Consumer Affairs in the central and state governments, which spread information through posters and television advertisements.

Logos such as ISI, Agmark and Hallmark on packs help consumers be assured of quality. The organisations that monitor and issue these certificates allow producers to use the logo only if they follow certain quality standards. Agmark is the certification for edible oil and cereals, and Hallmark is the certification for jewellery. The Bureau of Indian Standards (BIS) is an agency that develops standards for goods and services. It is not compulsory for all producers to follow standards. But for products that affect the health and safety of consumers, or products of mass consumption, such as LPG cylinders, food colours and additives, cement and packaged drinking water, certification is mandatory.

India observes 24 December as National Consumers' Day, since COPRA was enacted on that day in 1986. India is one of the countries with exclusive authorities for consumer redressal. There are more than 2000 consumer groups, but only about 50 to 60 are well organised and recognised. Challenges remain: the redressal process is becoming cumbersome, expensive and time-consuming; cash memos are often not given, so evidence is hard to gather; most purchases are small retail sales; awareness is spreading slowly and enforcement is weak. COPRA was amended in 2019 to strengthen consumers: buying through the internet is now covered, service providers and makers can be penalised or even imprisoned, and a neutral mediator can settle disputes outside the commissions. The movement works only with consumers' active involvement.