Business Legislation

Report on
CONSUMER PROTECTION ACT, 1986


Report by:
Ravi Gera
Ravi Motwani
Shreya Shukla
Sneha Lashkare
Siddharth Dhanpal
MBA Sem III
times business school
Vashi, Mumbai
Introduct|on


1he Consumer roLecLlon AcL 1986 ls a soclal welfare leglslaLlon whlch was enacLed as a resulL
of wldespread consumer proLecLlon movemenL 1he maln ob[ecL of Lhe leglslaLure ln Lhe
enacLmenL of Lhls acL ls Lo provlde for Lhe beLLer proLecLlon of Lhe lnLeresLs of Lhe consumer
and Lo make provlslons for esLabllshmenL of consumer counclls and oLher auLhorlLles for
seLLlemenL of consumer dlspuLes and maLLer LherewlLh connecLed
ln order Lo promoLe and proLecL Lhe rlghLs and lnLeresLs of consumers quasl [udlclal machlnery
ls soughL Lo be seL up aL dlsLrlcL sLaLe and cenLral levels 1hese quasl [udlclal bodles have Lo
observe Lhe prlnclples of naLural [usLlce and have been empowered Lo glve rellefs of speclflc
naLure and also Lo lmpose penalLles for non compllance of Lhe orders glven by such bodles

1he maln ob[ecL of Lhese bodles ls Lo provlde speedy and slmple redressal Lo consumer
dlspuLes lL ls one of Lhe benevolenL pleces of leglslaLlon lnLended Lo proLecL Lhe consumers aL
large from explolLaLlon
now the act was enacted?
1he acL was passes ln Lok Sabha on 9
Lh
uecember 1986 and 8a[ya Sabha on 10
Lh
uecember
1986 and assenLed by Lhe resldenL of lndla on 24
Lh
uecember 1986 and was publlshed ln Lhe
CazeLLe of lndla on 26
Lh
uecember 1986
1hls acL was enacLed ln Lhe 37
Lh
year of Lhe 8epubllc of lndla and was amended from Llme Lo
Llme ln Lhe followlng years le 1991 1993 and 2002
Consumer rotect|on Act 1986 An Introduct|on
1he acL came lnLo effecL flrsL on uecember 24 1986 afLer belng passed by Lhe lndlan
arllamenL and slgned by Lhe resldenL of lndla lL was modlfled laLer on and Lhe modlflcaLlons
came lnLo effecL on March 13 2003 lor all legal purposes you can read Lhe bare acL as
publlshed ln Lhe nCu8C webslLe
1he acL ls appllcable ln all sLaLes ln lndla excepL ln !ammu and kashmlr 1he acL makes
provlslons Lo lnclude boLh Langlble goods and lnLanglble servlces (henceforLh referred Lo as
producL) purchased from a Lrader or servlce provlder (henceforLh referred Lo as company) 1he
acL can apply Lo any consumer who uses Lhe producL for noncommerclal acLlvlLles Lhe only
excepLlon belng use of lL Lo earn hls llvellhood ln oLher words Lhe acL excludes commerclal
cusLomers fully buL lncludes lndlvldual domesLlc cusLomers groups of domesLlc cusLomers
socleLles and noLforproflL organlzaLlons

Consumer rotect|on Counc||s
1he acL provlslons Lhe cenLral and sLaLe governmenL Lo creaLe counclls aL Lhe cenLral sLaLe and
dlsLrlcL level Lo promoLe consumerlsm 1hese consumer proLecLlon counclls have very llLLle
sLaLuLory powers and as such any dlrecL beneflL you can geL as a consumer from Lhese counclls
ls low Lo none AparL from a few excepLlons mosL of Lhese counclls Loday have been reduced Lo
whlLe elephanL groups and groups for pollLlclans bureaucraLs and neLas Lo park Lhelr chamchas
ln! neverLheless alLhough rare Lhere are sLlll a handful of consumer proLecLlon counclls ln
lndla LhaL acLlvely promoLe consumer proLecLlon acLlvlLles
Consumer D|sputes kedressa| Agenc|es
1hls secLlon of Lhe acL provldes for Lhe creaLlon of consumer courLs 1he cenLral governmenL ls
glven Lhe responslblllLy Lo creaLe and malnLaln Lhe naLlonal Consumer ulspuLes 8edressal
Commlsslon ln new uelhl 1he sLaLe governmenL ls glven Lhe responslblllLy Lo creaLe a SLaLe
Consumer ulspuLes 8edressal Commlsslon aL Lhe sLaLe level and a ulsLrlcL Consumer ulspuLes
8edressal lorum aL Lhe dlsLrlcL level

1he sLaLuLory powers and [urlsdlcLlon of Lhe Lhree are summarlzed here
Amount of
Compensat|on ou
Seek
Court res|dent Cther Members
up Lo 8s 20 Lakh
ulsLrlcL Consumer
ulspuLes 8edressal
lorum
MusL be quallfled Lo be a
ulsLrlcL !udge
1wo oLher
members one musL
be a woman
8s 20 Lakh Lo 8s 1
Crore
SLaLe Consumer
ulspuLes 8edressal
Commlsslon
MusL be a person who ls or
has been a !udge of a Plgh
CourL
AL leasL Lwo oLher
members
Plgher Lhan 8s 1
Crore
naLlonal Consumer
ulspuLes 8edressal
Commlsslon
MusL be a person who ls or
has been a !udge of Lhe
Supreme CourL
AL leasL four oLher
members
?ou cannoL flle a complalnL ln a consumer courL lf Lwo years have elapsed afLer Lhe cause of
acLlon (such as paymenL of a blll or Lhe lncldenL LhaL sLarLed Lhe dlspuLe wlLh Lhe company)


D|str|ct Consumer D|sputes kedressa| Iorum
1he forum resldenL and members are dlrecLly / lndlrecLly appolnLed by Lhe sLaLe governmenL
and he shall be ellglble Lo be a dlsLrlcL [udge All members of Lhe courL can have a Lerm of up Lo
flve years or up Lo 63 years whlchever ls earller 1he ulsLrlcL Consumer lorum cannoL conducL
a hearlng wlLhouL Lhe resldenL and aL leasL one oLher member
1hls consumer courL deals wlLh complalnLs where Lhe compensaLlon soughL ls |ess than twenty
|akhs 1hls llmlL ls commonly known as Lhe pecunlary [urlsdlcLlon of Lhe ulsLrlcL Consumer
ulspuLes 8edressal lorum lor more deLalls on how Lo flle a complalnL wlLh a ulsLrlcL Consumer
CourL please refer Lo our arLlcle abouL flllng complalnLs ln consumer courLs
A ulsLrlcL Consumer lorum can hear cases for any company LhaL operaLes an offlce or a branch
ln Lhe dlsLrlcL lL can also hear cases provlded Lhe acLual reason why you are flllng Lhe complalnL
(such as sale or malnLenance servlce LhaL led Lo Lhe defecL) parLlally or fully occurred wlLhln Lhe
dlsLrlcL lor Lhls same reason lL ls vL8? lMC81An1 LhaL you do noL do buslness wlLh any
company LhaL does noL have local represenLaLlon or one LhaL makes you slgn an agreemenL
regardlng Lhe [urlsdlcLlon of Lhe dlspuLe
1he law provldes LhaL Lhe ulsLrlcL Consumer ulspuLes 8edressal lorum has Lhe same powers as
a clvll courL under Code of Clvll rocedure 1908 buL you may be surprlsed as Lo how much of
Lhls power ln law books acLually manlfesLs when puL Lo pracLlce
1he ulsLrlcL Consumer lorum can order Lhe company Lo Lake Lhe followlng acLlons once lL hears
Lhe complalnL and decldes LhaL Lhe company ls aL faulL
O CorrecL deflclencles ln Lhe producL Lo whaL Lhey clalm
O 8epalr defecL free of charges
O 8eplace producL wlLh slmllar or superlor producL
O lssue a full refund of Lhe prlce
O ay compensaLlon for damages / cosLs / lnconvenlences
O JlLhdraw Lhe sale of Lhe producL alLogeLher
O ulsconLlnue or noL repeaL any unfalr Lrade pracLlce or Lhe resLrlcLlve Lrade pracLlce
O lssue correcLlve adverLlsemenL for any earller mlsrepresenLaLlon
lf you are noL saLlsfled wlLh Lhe verdlcL from Lhe ulsLrlcL Consumer CourL you can appeal ln Lhe
SLaLe Consumer ulspuLes 8edressal Commlsslon wlLhln a perlod of 30 days lf a verdlcL has been
glven agalnsL Lhe company lL can appeal only afLer deposlLlng 30 of Lhe compensaLlon Lo be
pald Lo you or 8s23000/ whlchever ls lesser


State Consumer D|sputes kedressa| Comm|ss|on
1he law provldes LhaL Lhe SLaLe Consumer Commlsslon funcLlon ln Lhe sLaLe caplLal buL Lhe
governmenL has Lhe powers Lo move lL as needed 1he resldenL of Lhe SLaLe Consumer
Commlsslon shall be or should have been a Plgh CourL [udge and should be appolnLed only
afLer consulLaLlon wlLh Lhe Chlef !usLlce of Lhe Plgh CourL wlLh Lhe sLaLes [urlsdlcLlon 1he
remalnlng members of Lhe commlsslon are appolnLed by a commlLLee wlLh Lhe resldenL of Lhe
SLaLe Consumer CourL as lLs chalrman and Lhey can have a Lerm of up Lo flve years or up Lo 67
years whlchever ls earller
1he SLaLe Consumer ulspuLes 8edressal Commlsslon deals wlLh a pecunlary [urlsdlcLlon of only
Lhose complalnLs where Lhe compensaLlon soughL ls h|gher than twenty |akhs but |esser than
one crore lor more deLalls on how Lo flle a complalnL wlLh a SLaLe Consumer CourL please
refer Lo our arLlcle abouL flllng complalnLs ln consumer courLs
1he SLaLe Consumer lorum usually hears cases of Lhree Lypes
1 Appeals from ulsLrlcL Consumer lorums
2 Cases agalnsL companles LhaL operaLes an offlce or a branch ln Lhe sLaLe
3 Cases where Lhe acLual reason why you are flllng Lhe complalnL (such as slgnlng of an
agreemenL or paymenL of a blll) parLlally or fully occurred wlLhln Lhe sLaLe
1he SLaLe Consumer CourL also has Lhe powers Lo Lransfer a case from one ulsLrlcL Consumer
lorum Lo anoLher lorum provlded Lhere ls such a requesL or lL ls ln Lhe lnLeresL of Lhe law
lf you are noL saLlsfled by Lhe verdlcL from Lhe SLaLe Consumer CourL you can appeal ln Lhe
naLlonal Consumer ulspuLes 8edressal Commlsslon wlLhln a perlod of 30 days lf a verdlcL has
been glven agalnsL Lhe company lL can appeal only afLer deposlLlng 30 of Lhe compensaLlon
Lo be pald Lo you or 8s33000/ whlchever ls lesser

-at|ona| Consumer D|sputes kedressa| Comm|ss|on
1he naLlonal Consumer CourL musL ordlnarlly be funcLlonlng ln new uelhl and ls preslded over
by a person who ls currenLly or has been ln Lhe pasL a [udge of Lhe Supreme CourL 1he
resldenL of Lhe naLlonal Consumer ulspuLes 8edressal Commlsslon (nCu8C) ls appolnLed by
Lhe CenLral CovernmenL afLer consulLaLlon wlLh Lhe Chlef !usLlce of lndla 1he naLlonal
Consumer Commlsslon has a mlnlmum of four oLher members and ls appolnLed by a commlLLee
chalred by a Supreme CourL [udge as recommended by Lhe Chlef !usLlce of lndla Members of
Lhe nCu8C can have a Lerm of up Lo flve years or up Lo 70 years whlchever ls earller
lf your complalnL seeks more than one crore rupees of compensaLlon from a company Lhen
Lhe naLlonal Consumer Commlsslon has Lhe pecunlary [urlsdlcLlon over your complalnL lor
more deLalls on how Lo flle a complalnL wlLh Lhe naLlonal Consumer CourL please refer Lo our
arLlcle abouL flllng complalnLs ln consumer courLs 1he naLlonal Consumer CourL handles flve
Lypes of complalnLs
O ComplalnLs LhaL has been soughL or need Lo be Lransferred from one SLaLe Consumer
Commlsslon Lo anoLher ln Lhe lnLeresL of [usLlce
O Appeals from SLaLe Consumer ulspuLes 8edressal Commlsslons
O Consumer complalnLs LhaL occurred ln lndla excepL ln Lhe SLaLe of !ammu and kashmlr
O Cases from SLaLe Consumer Commlsslons where Lhere has been accusaLlons or proof of
maLerlal lrregularlLy or lllegal acLlvlLles
O Cases where exparLe (where verdlcLs have been passed ln Lhe absence of elLher parLles)
orders have Lo be seL aslde
lf you are noL saLlsfled by Lhe verdlcL from Lhe naLlonal Consumer CourL you can appeal ln Lhe
Supreme CourL wlLhln a perlod of 30 days lf a verdlcL has been glven agalnsL Lhe company lL
can appeal only afLer deposlLlng 30 of Lhe compensaLlon Lo be pald Lo you or 8s30000/
whlchever ls lesser

Consumer rotect|on Act of 1986 Summary
1he acL ln lLself ls rosy and seems omnlpoLenL Lo promoLe consumerlsm ln lndla 1he law sLaLes
LhaL Lhe consumer courLs have Lhe auLhorlLy slmllar Lo LhaL of a !udlclal MaglsLraLe of Lhe flrsL
class ln aLLachlng properLles and arresLlng persons ln case any of lLs verdlcLs are vlolaLed or noL
adhered 8uL ln pracLlce Lhe law and Lhe consumer courL sysLem suffer from Lhe followlng
drawbacks
O Seldom do companles pay heed Lo Lhe consumer courL 1helr reporLs orders and
summons are very commonly lgnored As a resulL mosL consumer cases drag on
unnecessarlly wlLhouL any ouLcome
O Seldom do companles adhere Lo Lhe verdlcL As a resulL once Lhe verdlcL comes
proceedlngs Lo execuLe Lhe verdlcL Lake even more Llme of Lhe complalnanL
O Consumer courLs are noL known Lo be devold of corrupLlon llke oLher courLs ln our
counLry
O Consumer courLs are overwhelmed and underfunded 1he governmenL palnLs very rosy
sLaLlsLlcs LhaL 84 of cases ln naLlonal Consumer Commlsslon 77 of cases ln SLaLe
Commlsslon and 91 of cases ln ulsLrlcL Consumer lorums are dlsposed Powever lL
does noL Lell you how long lL Lakes Lo dlspose a case nor how many cases are dlsposed
ln Lhe favor of Lhe consumer Je would have Lo assume a very large amounL of Llme
and a very low percenLage as answers
O Accordlng Lo Lhe Supreme CourL Lhere are 33 crore pendlng cases ln Lhe lndlan courLs
Loday SLaLlsLlcally lL could Lake 330 Lo 300 years Lo dlspose of Lhe cases pendlng ln
lndla Add Lo Lhls Lhe facL LhaL our governmenL ls lnefflclenL ln appolnLlng resldenLs for
ulsLrlcL lorums and creaLlng encouraglng and rellshlng bureaucraLlc delays you would
be exLremely lucky lf you can geL your case dlsposed ln 3 years
Powever we do sLlll encourage you Lo flle complalnLs aL Lhe varlous consumer courLs as per Lhe
provlslons of Lhe Consumer roLecLlon AcL of 1986 as alLhough a slow one we Lhlnk of lL as a
sLarL on lndlas progress Lowards consumerlsm llnally we encourage you Lo seek oLher
measures Lo flghL agalnsL anLlconsumer companles as explalned ln Lhe followlng arLlcles
Consumer k|ghts
ln Lhe 20Lh cenLury Lhe presence and lnfluence of Lhe markeL grew dramaLlcally ln consumer
llfe Je began Lo purchase Lhlngs from Lhe markeL for a prlce Soon mass producLlon and
lndusLrlal producLlon came lnLo belng glvlng Lhe consumer world an enLlrely new dlmenslon
Pave you ever wondered how much urban consumers depend on Lhe markeL for fulfllmenL of
even Lhelr baslc needs 1hls overdependence on Lhe markeL and Lhe lnherenL proflL moLlve ln
mass producLlon and sales has glven manufacLurers and dealers a good reason Lo explolL
consumers As a consumer you would know how markeL producLs are consLanLly underwelghL
of lnferlor quallLy and do noL prescrlbe Lo quallLy sLandards speclfled by quallLyconLrol
agencles Consumers noL only do noL geL value for Lhelr money buL also ofLen have Lo suffer
losses and lnconvenlence due Lo markeL manlpulaLlons

1he 8 Consumer k|ghts
ln order Lo safeguard consumer lnLeresL 6 consumer rlghLs were lnlLlally envlsloned by
consumer rlghLs acLlvlsLs of Lhe JesL namely
O 8lghL Lo SafeLy
O 8lghL Lo lnformaLlon
O 8lghL Lo Cholce
O 8lghL Lo be Peard
O 1he 8lghL Lo 8edress
O 1he rlghL Lo consumer educaLlon
Consumer k|ghts and kespons|b|||t|es
1hese rlghLs were concepLuallzed ln Lhe developed worlds consumer conLexL where consumers
are wealLhy and compleLely dependenL on Lhe markeL Lo fullfll Lhelr needs 1hese rlghLs had Lo
be redeflned keeplng ln mlnd Lhe reallLles of a developlng counLry llke lndla ConsequenLly Lwo
very lmporLanL rlghLs were added vlz
O 1he 8lghL Lo 8aslc needs and
O 1he rlghL Lo a healLhy and susLalned envlronmenL
1hese Lwo rlghLs are very closely llnked wlLh Lhe reallLles of developlng counLrles where
envlronmenL plays a very lmporLanL role as a resource and supporLsLrucLure for Lhe people ln
a counLry llke lndla a large secLlon of Lhe populaLlon looks for food securlLy assured safe waLer
supply shelLer educaLlon and healLh servlces MosL consumers relaLe very llLLle Lo lmporLed
goods sLacked ln supermarkeLs or for cholce among laLesL models of cars as ls Lhe case ln Lhe
developed world lor lndlas 1 bllllon populaLlon food securlLy and a safe envlronmenL are
more presslng needs Lhan any oLher consumer opLlons and rlghLs 1he developlng counLry
naLural resources also serve as a resource base for Lhe developed worlds lndusLrlal ouLpuL

k|ght to 8as|c -eeds
Access Lo food waLer and shelLer are Lhe basls of any consumers llfe JlLhouL Lhese
fundamenLal amenlLles llfe cannoL exlsL ln SepLember 2001 lndlas sLock of foodgralns were
around 60 mllllon Lonnes yeL one Lhlrd of Lhe lndlan populaLlon llves below Lhe poverLy llne
and consumers ofLen go hungry or remaln severely malnourlshed leadlng Lo poor healLh 1he
recenL sLarvaLlon deaLhs ln Crlssa are a case ln polnL A very cruclal ob[ecLlve of Lhe
concepLuallsaLlon and exlsLence of consumer rlghLs ls Lo ensure LhaL consumers have an
assured food supply safe and permanenL dwelllngs baslc amenlLles of llfe llke sanlLaLlon and
poLable waLer and power supply

urbanlsaLlon ls seen as a mark of developmenL buL for rural mlgranL populaLlon llvlng
condlLlons ln clLles ls very poor 1he populaLlon of clLles ls growlng rapldly ln lndla and afLer
1988 Lhe percenLage of urban poor has been more Lhan LhaL of Lhe rural poor Around 20 Lo 23
per cenL of Lhe urban households llve ln slums makeshlfL colonles or refugee seLLlemenLs due
Lo nonavallablllLy of affordable and decenL hablLaL ln urban areas Accordlng Lo some
esLlmaLes ln urban areas alone Lhere ls a houslng shorLage of 17 mllllon unlLs 1hls has led Lo a
hablLaL crlsls ln lndlan clLles ln rural lndla Lhe slLuaLlon ls equally bad wlLh a large parL of Lhe
populaLlon sLlll llvlng ln makeshlfL dwelllngs and huLmenL JlLh nonpermanenL houslng comes
lack of sanlLaLlon faclllLles and oLher amenlLles llke runnlng waLer and elecLrlclLy supply uue Lo
burgeonlng populaLlon mosL people do noL have access Lo dry LolleLs ln rural and urban areas

Iood Secur|ty for Consumers
1he recenL deaLhs of poor people ln Crlssa due Lo sLarvaLlon ln AugusL 2001 have lndlcaLed LhaL
food securlLy ls sLlll a myLh of a secLlon of Lhe lndlan consumers 1o solve Lhls food scarclLy
problem Lhe CovernmenL of lndla mooLed Lhe uS (ubllc ulsLrlbuLlon SysLem) Lo help reach
foodgraln Lo Lhe masses aL subsldlzed raLes Lhrough governmenLrun 'lalr rlce Shops 1here
are abouL 43 lakh lalr rlce Shops all over lndla of whlch 303 are ln rural areas and 094 ln
urban areas Cn an average Lhere ls 1 uS shop for every 2000 consumers ?eL many parLs of
lndla sLlll suffer from food shorLages oor dlsLrlbuLlon and underuLlllsaLlon of food gralns has
led Lo arLlflclallycreaLed food scarclLles ln Lhe counLry resenLly Lhere are 60 mllllon Lonnes of
foodgraln ln Lerms of buffer sLock ln lndlan godowns 1hls foodgraln ls roLLlng due Lo
unuLllsaLlon and lmproper sLorage faclllLles 1he need of Lhe hour ls Lo channellse Lhls sLock
Lowards needy consumers and offer Lhem 'food for work programmes whlch wlll noL only glve
Lhem employmenL buL also money 8esldes maklng sure LhaL Lhere ls enough food accesslble Lo
consumers aL all Llmes nuLrlLlon ls anoLher area whlch Lhe healLh of chlldren and Lhe
vulnerable secLlons of populaLlon ls aL sLake 1hls ls an area where consumers can Lake
responslblllLy for ensurlng LhaL quallLy ls added Lo Lhelr baslc food supply

k|ght to Safe Lnv|ronment
lor urban consumers envlronmenL means parks gardens and deLerloraLlng alr and waLer
quallLy MosL urban areas are berefL of any wlldllfe and people are unaware of Lhe blodlverslLy
around Lhem Cn Lhe oLher hand rural consumers rely on Lhelr envlronmenL for fulfllmenL of
Lhelr baslc needs

1he need for envlronmenLal conservaLlon ls seen as a necessary defence agalnsL deLerloraLlng
quallLy of llfe worldwlde Je are all vlcLlms of conLamlnaLed food and waLer supply pesLlclde
rldden food adulLeraLed mllk and choklng exhausL fumes emlLLlng from vehlcles Accordlng Lo a
Jorld 8ank reporL lndla ls belng pushed back due Lo lLs hlgh envlronmenLal cosLs Je lose
around 8s 24300 crores every year ln Lerms of alr and waLer polluLlon alone lf you llve ln a clLy
you musL have experlenced alr and waLer polluLlon aL some polnL of Llme Chlldren ofLen fall lll
due Lo polluLed envlronmenLs lL leads Lo lncreased healLh cosLs and dlscomforL for consumers
valuable resources and mandays are losL due Lo polluLed envlronmenL and llvlng condlLlons
Consumers need Lo undersLand LhaL only a safe envlronmenL can ensure Lhe fulfllmenL of Lhelr
consumer rlghLs

Internat|ona| Standards for Safeguard|ng k|ght to Safe Lnv|ronment
Consumers lnLernaLlonal (a nodal agency of consumer organlsaLlons from all over Lhe world)
has made cerLaln guldellnes for ensurlng consumers rlghL Lo safe envlronmenLConsumers
should be proLecLed from envlronmenLal polluLlon by
O romoLlng Lhe use of producLs whlch are envlronmenLally susLalnable
O Lncouraglng recycllng
O 8equlrlng envlronmenLally dangerous producLs Lo carry approprlaLe warnlngs and
lnsLrucLlons for safe use and dlsposal
romoLe Lhe use of nonLoxlc producLs by
O 8alslng consumer awareness of alLernaLlves Lo Loxlc producLs
O LsLabllshlng procedures Lo ensure LhaL producLs banned overseas do noL enLer naLlonal
markeLs
O Lnsure LhaL Lhe soclal lmpacLs of polluLlon are mlnlmlsed
O romoLe eLhlcal soclally and envlronmenLally responslble pracLlces by producers and
suppllers of goods and servlces
8ural consumers are lnvarlably closer Lo Lhelr envlronmenL Lhan urban consumers 1helr
llvellhoods and way of llfe depend on Lhe envlronmenL around Lhem 1helr flrewood and
sources of energy come from Lrees manure for flelds comes from llvesLock waLer ls procured
elLher from underground waLer supply or from rlvers Lhe crops heavlly depend on annual
ralnfall even pesLlcldes for safeguardlng of crops and sLorage also come from Lrees llke neem
ln shorL Lhe rural llfe revolves around naLural resources lor Lhem Lhls dependence on Lhe
envlronmenL ls compleLe and Lhey have a sLake ln lLs preservaLlon wheLher lL ls for bulldlng
Lhelr houses fodder for Lhelr caLLle eLc

k|ght to Safety
Consumer rlghL Lo safeLy ls as vasL ln lLs purvlew as Lhe markeL reach lLself lL applles Lo all
posslble consumpLlon paLLerns and Lo all goods and servlces ln Lhe conLexL of Lhe new markeL
economy and rapld Lechnologlcal advances affecLlng Lhe markeL Lhe rlghL Lo safeLy has become
a prerequlslLe quallLy ln all producLs and servlces lor eg some lndlan producLs carry Lhe lSl
mark whlch ls a symbol of saLlsfacLory quallLy of a producL Slmllarly Lhe lC and ACMA8k
symbollse sLandard quallLy of food producLs 1he markeL has for long made consumers belleve
LhaL by consumlng packaged food or mlneral waLer consumers can safeguard Lhelr healLh 1hls
noLlon has been proved wrong Llme and agaln due Lo rampanL food adulLeraLlon ln markeL
producLs 8lghL Lo food safeLy ls an lmporLanL consumer rlghL slnce lL dlrecLly affecLs Lhe healLh
and quallLy of llfe of consumers

Larller Lhe lnLerpreLaLlon of Lhe rlghL Lo safeLy was llmlLed Lo elecLronlc producLs and oLher
such producLs now lLs deflnlLlon has expanded a loL Lo lnclude safeLy aspecLs of new
Lechnologles llke CM food food labelllng chemlcal lngredlenLs ln food producLs eLc ln Lodays
scenarlo of globallsaLlon consumers have no conLrol over where Lhe producLs or commodlLles
Lhey use come from lor lnsLance Lhe chocolaLes or syrups we consume may be
manufacLured ln counLrles as far as Lhe uS or AusLralla Consumers ln lndla would have no
conLrol over or knowledge of Lhe manufacLurlng pracLlces of Lhose counLrles and wlll have Lo
rely compleLely on lmporL regulaLlons of Lhe lndlan governmenL and food labelllng 1hls makes
Lhe consumer rlghL Lo safeLy a very lmporLanL and crlLlcal lssue for consumers

GM Iood Safe or -o?
Larller rlghL Lo safeLy meanL LhaL a consumer should be proLecLed from healLh rlsks of uslng
elecLronlc producLs llke lrons plugs or oLher such Lhlngs 1echnologlcal changes have however
wldened Lhe amblL of Lhls consumer rlghL 1he rlghL Lo safeLy has now expanded ln purvlew Lo
lnclude CM food CM food can be lood safeLy should ensure LhaL consumer has no shorLLerm
or longLerm adverse healLh effecLs due Lo consumpLlon of CM food CeneLlcally Modlfled
organlsms can be deflned as 'organlsms produced as a resulL of 8loLechnologlcal changes or
geneLlc englneerlng CM Lechnology ls suspecL because maklng changes ln Lhe geneLlc code
alLers Lhe enLlre sequence of Lhe maLerlal and LhaL mlghL lead Lo unlnLended developmenL of
many undeslrable LralLs lor eg A vlrus whlle ln conLacL wlLh a gene reslsLanL planL may
acqulre Lhe geneLlc maLerlal ( dlsease reslsLanL quallLy) and may become even more dangerous
lf any such vlrus becomes vlrulenL lL may desLroy deslrable planL specles and creaLe serlous
lmbalance ln Lhe glven ecosysLem Also lf a consumer eaLs CM food producLs s/he may
develop reslsLance Lo anLlbloLlcs or allergles ln cerLaln cases



k|ght to Informat|on
8lghL Lo lnformaLlon means Lhe rlghL Lo be glven Lhe facLs needed Lo make an lnformed cholce
or declslon abouL facLors llke quallLy quanLlLy poLency purlLy sLandards and prlce of producL
or servlce 1he rlghL Lo lnformaLlon now goes beyond avoldlng decepLlon and proLecLlon agalnsL
mlsleadlng adverLlslng lmproper labelllng and oLher pracLlces lor eg when you buy a producL
or uLlllse a servlce you should be lnformed abouL a) how Lo consume a producL b) Lhe adverse
healLh effecLs of lLs consumpLlon c) JheLher Lhe lngredlenLs used are envlronmenL frlendly or
noL eLc uue Lo Lhe ever lncreaslng lnfluence of Lhe markeL and Lhe ever changlng scene wlLh
prlce wars and hardsell Lechnlques Lhe consumers rlghL Lo lnformaLlon becomes even more
lmporLanL 1he rlghL Lo lnformaLlon means much more Lhan slmple dlsclosure of Lhe producLs
welghL or prlce A consumer has Lhe rlghL Lo know how Lhe producL has been prepared
wheLher lL has been LesLed or anlmals or noL lf envlronmenLallysound Lechnlques and
resources have been used ln lLs producLlon processes whaL klnds of chemlcals are used lnLo lLs
manufacLurlng and whaL could be Lhelr lmpacL on consumer healLh Clearly a consumer has Lo
conslder a loL of facLors before s/he buys a producL

ldeally a consumer should have knowledge of Lhe enLlre 'cradle Lo grave [ourney of Lhe
producL Lo deLermlne wheLher lLs safe and beneflclal for use or no 1he 'cradle Lo grave [ourney
refers Lo Lhe processes a producL goes Lhrough from Lhe Llme of lL belng made ouL of raw
maLerlal Lhe processes of lLs mouldlng lnLo lLs flnal shape LransporLaLlon labour lngredlenLs
used Lo Lhe form ln whlch lL ends up on markeL shelves lL ls only when a consumer ls aware of
Lhe hlsLory of Lhe producL LhaL he can make lnformed cholces An example of Lhls ls Lhe CM
food conLroversy CM food ls promoLed as Lhe answer Lo worlds hunger and malnuLrlLlon buL
lLs safeLy for consumers and Lhe envlronmenL ls yeL Lo be proved uesplLe sLrong lobbylng by
proCM groups and Lhe markeL consumers ln Lurope have campalgned effecLlvely agalnsL Lhe
enLry of CM food lnLo Lhelr food chaln and markeLs 1here are lnformaLlon and publlclLy
campalgns LhaL have made consumers rally behlnd a common consumer sLand agalnsL CM
food As a resulL Lhe governmenLs and Lhe Luropean unlon have placed sLrlcL resLrlcLlons on
Lhe Lrlal uses of CM Lechnology ln Lhe markeL or ln agrlculLure


k|ght to Cho|ce
ulfferenL lnLeresLs can lnLerpreL Lhe rlghL Lo cholce ln dlfferenL ways lor Lhe developed world
consumers rlghL Lo cholce LranslaLes lnLo more and a varleLy of producLs Lo choose from lor
eg Amerlcan consumers can choose from 23000 super markeL lLems 200 klnds of cereals and
read 11092 magazlnes 1hls klnd of cholce ofLen glves consumers a sense of wellbelng and
safeLy and encourages Lhem Lo belleve LhaL abundance leads Lo good llvlng 1he markeL also
perpeLuaLes Lhls llne of LhoughL by adverLlslng and promoLlon glmmlcks 1he rlghL Lo cholce has
a very dlfferenL deflnlLlon ln developlng counLrles lor a populaLlon dependenL on Lhe
envlronmenL for llvellhood Lhe rlghL Lo cholce and oLher consumer rlghLs need a shlfL ln focus
1he focus needs Lo be on cholce of good pracLlces llke organlc farmlng and conservaLlon of
naLural herlLage ln clLles people should be able Lo choose cleaner and safer ways of
LransporLaLlon over polluLlng ones Slmllarly healLhy and fresh food should be chosen over [unk
food 1he rlghL Lo choose musL essenLlally be a consumers rlghL Lo choose a safe and healLhy
producL of good quallLy over an unsafe or defecLlve producL 1hls can glve a consumer lmmense
leverage noL [usL Lo choose producLs LhaL are safe buL also Lo lnfluence Lhe pracLlces adopLed
by Lhe markeL

1he consumer has been made Lo belleve LhaL more varleLles of Lhe same producL on Lhe markeL
shelves glve hlm or her Lhe rlghL Lo choose whaL s/he wanLs ln reallLy more varleLles of Lhe
same producL [usL encourages false adverLlslng clalms and glve Lhe consumer a false sense of
cholce varlous klnds of shampoos soaps and oLher cosmeLlcs dlffer merely ln colour smell
and brand lmage Lach one of Lhem clalms oneupmanshlp over Lhe oLher buL glves Lhe
consumer very llLLle value for money or a beLLer quallLy producL


k|ght to be neard
1he rlghL Lo be heard means LhaL consumers should be allowed Lo volce Lhelr oplnlons and
grlevances aL approprlaLe fora lor eg lf you have been cheaLed ln Lhe markeL place or
deprlved of Lhe rlghL quallLy of servlce your complalnL should be heard and glven due aLLenLlon
by Lhe auLhorlLles Consumers should also have a rlghL Lo volce Lhelr oplnlon when rules and
regulaLlons perLalnlng Lo Lhem are belng formulaLed llke Lhe recenL amendmenLs ln Lhe
Consumer roLecLlon AcL 1he rlghL Lo be heard holds speclal slgnlflcance ln Lhe lndlan conLexL
because lndlan consumers are largely unaware of Lhelr rlghLs and passlvely accepL Lhelr
vlolaLlon Lven when Lhey have legal recourse Lhey prefer noL Lo use lL for fear of geLLlng
embrolled ln legal complexlLles

k|ght to kedress
CompeLlLlon ls Lhe byproducL of Lhe markeL economy Lveryday manufacLurers are
dlscoverlng newer ways of cheaLlng and duplng consumers unscrupulous markeL pracLlces are
flndlng Lhelr way lnLo consumer homes vlolaLlng consumer rlghLs and [eopardlslng Lhelr safeLy
lL ls Lo proLecL consumer lnLeresLs LhaL consumers have been glven Lhe rlghL Lo obLaln redress
ln lndla we have a redress machlnery called Consumer CourLs consLlLuLed under Lhe Consumer
roLecLlon AcL (1986) funcLlonlng aL naLlonal sLaLe and dlsLrlcL levels 8uL lL has noL been made
compleLe use of under due Lo lack of awareness of baslc consumer rlghLs among consumers
Lhemselves

Jhlle ln Lhe developed world rlghL Lo redress ls perhaps Lhe mosL commonly exerclsed
consumer rlghL ln developlng counLrles consumers are sLlll wary of geLLlng lnvolved ln legal
redress sysLem 1here are consumer courLs ln lndla where any consumer can lodge a case lf
s/he Lhlnks he or she has been cheaLed 1he deLalls of how Lo lodge a complalnL have been
explalned elsewhere ln Lhe manual

k|ght to Consumer Lducat|on
Consumer educaLlon empowers consumers Lo exerclse Lhelr consumer rlghLs lL ls perhaps Lhe
slngle mosL powerful Lool LhaL can Lake consumers from Lhelr presenL dlsadvanLageous poslLlon
Lo one of sLrengLh ln Lhe markeLplace Consumer educaLlon ls dynamlc parLlclpaLory and ls
mosLly acqulred by handson and pracLlcal experlence lor lnsLance a woman who makes
purchase declslons for Lhe household and does Lhe acLual buylng ln Lhe markeLplace would be
more educaLed abouL markeL condlLlons and 'besL buys Lhan a person who educaLes hlmself
abouL Lhe markeL wlLh Lhe help of newspapers or Lelevlslon Also Loday lL ls noL [usL Lhe
markeL or producLs LhaL a consumer needs Lo educaLe hlmself abouL buL s/he also needs Lo
know abouL company proflle governmenL pollcles and lnLroducLlon of new Lechnology

1he pharmaceuLlcal lndusLry ls one such example lndla wlLh lLs 1 bllllon populaLlon and largely
uneducaLed consumers ls a very lucraLlve markeL for Lhls lndusLry 1he pharmaceuLlcal
lndusLry Lo boosL lLs sales offers free samples of medlclnes freebles and even free luxury
holldays Lo physlclans Lo lnfluence Lhem Lo use Lhelr brands and glve Lhem preference over
oLher brand names 1here have been many lnsLances when drugs banned ln counLrles llke uS
have been prescrlbed Lo lndlan consumers and are readlly avallable as overLhecounLer drugs
lL ls a sad example of gross vlolaLlon of consumer LrusL by medlcal pracLlLloners 1hls slLuaLlon ls
rampanL noL [usL ln rural areas buL also among educaLed urban consumers 1he reason why Lhe
markeL ln connlvance wlLh physlclans ls able Lo explolL consumers ls LhaL lndlan consumers are
noL aware of Lhe prevalllng slLuaLlon and do noL keep Lhemselves abreasL wlLh laLesL
developmenLs Laklng place around Lhem Consumer educaLlon can play a cruclal role ln
proLecLlng consumers agalnsL such dangers ln Lhe lndlan conLexL susLalnablllLy and LradlLlonal
knowledge can play a vlLal role ln empowerlng consumers buL consumers are unable Lo connecL
Lo Lhelr knowledge base Consumer educaLlon can re[oln Lhe broken llnk and make LradlLlonal
knowledge accesslble Lo consumers agaln


Consumer kespons|b|||ty
Jhlle we all llke Lo know abouL our rlghLs and exerclse Lhem we hardly ever accord Lhe same
lmporLance and urgency Lo our consumer responslblllLles Consumer rlghLs and responslblllLles
are lnLerLwlned LogeLher and wlLhouL sharlng consumer responslblllLy consumers wlll flnd lL
very dlfflculL Lo en[oy Lhelr rlghLs on a longLerm basls

Consumers need Lo Lread cauLlously ln Lhe markeL place Jhlle buylng a producL ask yourself
Lhese quesLlons
O uo you really need Lhls producL?
O lor how long would you llke Lo use lL? Jlll lL lasL as long as you would llke lL Lo?
O JhaL are Lhe healLh fallouL of LhaL producL? lf lL ls a food producL does lL glve you any
healLh beneflLs? Check Lhe labelllng of Lhe producL Lo see Lhe nuLrlLlonal charL of Lhe
producL
?ou can also empower yourself by knowlng Lhe law lor eg dld you know LhaL lSl mark on
boLLled mlneral waLer has been made mandaLory by Lhe governmenL and now labelllng of non
vegeLarlan lngredlenL ln food producLs wlll also mandaLory for Lhe lndusLry?

Consumer responslblllLy can play a very lmporLanL role ln noL only checklng Lhe markeL buL also
ln resLrlcLlng unnecessary consumpLlon lL ls noL Lhe sole responslblllLy of Lhe markeL or of Lhe
governmenL Lo provlde consumers wlLh deLalled lnformaLlon A consumer on hls parL musL
make every efforL Lo lnform hlmself of Lhe producL or servlce lor example lf a consumer
consumes a healLh producL he musL make efforLs Lo lnform hlmself beforehand abouL lLs
posslble sldeeffecLs and musL also exerclse cauLlon regardlng hls eaLlng hablLs dleL and
physlcal exerclse Lo Lake full advanLage of Lhe producL


kespons|b|||ty towards safe waste d|sposa|
MosL ofLen we consume wlLhouL sparlng any LhoughL for whaLs golng Lo be lefL behlnd as
wasLe More and more percenLage of wasLe generaLed ln urban areas Loday conslsLs of non
blodegradable wasLe urban consumers are maklng use of plasLlc paper and cardboard
packaglng dlsposables baLLerles plasLlc Lhrowaway pens use and Lhrow napples empLy cans
eLc are becomlng a common feaLure of an urban dusLbln lndlas urban populaLlon ls around
300 mllllon 8y 2011 Lhe LoLal quanLlLy of solld wasLe generaLed ln urban areas ls expecLed Lo
cross 36 mllllon Lonnes creaLlng a wasLe managemenL crlsls for urban lndla Consumers need
Lo become accounLable for Lhelr consumpLlon paLLerns and Lhelr serlous envlronmenLal and
economlc lmpllcaLlons 1he 4 8s of consumpLlon (8educe 8ecycle 8efuse and 8euse) are noL
[usL a consumers prerogaLlve buL also hls consumer responslblllLy

kespons|b|||ty to endorse safer products Lco|abe|||ng
Lcofrlendllness ls an lmporLanL crlLerlon ln [udglng a producLs feaslblllLy lL ls a way of
assesslng how much damage a producL has caused Lo Lhe envlronmenL 'Lcomark ls one way
of knowlng whlch producLs conform Lo envlronmenLal sLandards and are more envrlonmenL
frlendly Lhan oLhers Lcolabelllng ls a meLhodology pracLlsed by many counLrles ln Lhe world
lncludlng lndla 1he lndlan governmenL has formulaLed a scheme whereby some caLegorles of
producLs are awarded Lhe 'Lcomark lf Lhey conform Lo cerLaln sLandards seL by Lhe MlnlsLry of
LnvlronmenL and loresLs unforLunaLely ln lndla Lhe scheme has noL Laken off due Lo
consumer apaLhy and lack of response 1he markeL has manlpulaLed Lhls slLuaLlon Lo lobby wlLh
Lhe governmenL Lo make ecolabelllng a volunLary scheme whlch wlll allow manufacLurers Lo
dlsclose and cover lnformaLlon aL wlll


oung Consumers and Consumer kespons|b|||ty
Chlldren Leenagers and youLh consLlLuLe a very lmporLanL consumer segmenL for Lhe markeL
1helr consumpLlon hablLs are unlque and Lhelr purchase declslons are based on popular Lrends
brand lmage use of new Lechnology flavour of food producLs and sLyle1he markeL also
reallses LhaL young consumers have a propenslLy Lo consumer [unk food and prefer Lhem over
LradlLlonal forms of food 1hls characLerlsLlc ls explolLed by Lhe markeL by assoclaLlng
convenlence and a brand lmage wlLh [unk food llke colas plzzas and fasLfood [olnLs

1here are Lhree ma[or brands of LooLhpasLe ln lndla vlz ColgaLe epsodenL and Close up All
Lhree of Lhem compeLe wlLh each oLher Lo capLure maxlmum markeL share ln order Lo achleve
Lhls Lhey noL only LargeL chlldren as consumers buL also feaLure Lhem ln Lhelr adverLlsemenLs
Lo aLLracL oLher young consumers ColgaLe for eg LargeLs young chlldren ln Lhe age group of 3
Lo 12 and offers free carLoon bookleLs along wlLh LooLhpasLes epsodenL vles for Lhe same
consumer segmenL and deplcLs some chlldren rellshlng snacks confecLlonery and sweeLs whlle
oLhers are scolded by Lhelr moLhers for havlng done Lhe same Lhlng 1hls adverLlsemenL makes
chlldren belleve LhaL consumers who use epsodenL are lmmune Lo any LooLh decay because of
Lhe superlor quallLy of Lhe producL 1hls clalm ls unauLhenLlcaLed and aLLempLs Lo mlslead
chlldren

Close up on Lhe oLher hand does noL percelve chlldren as lLs LargeL audlence lnsLead lL
LargeLs Leenagers and Lhe youLh lL creaLes a brand lmage of confldence and popularlLy for
young consumers beLween Lhe age group of 1630 lLs adverLlsemenLs consLanLly feaLure
successful frlendshlps and romances beLween Closeup users

Jomen Consumers
Jomen consumers noL only consLlLuLe 30 of Lhe LoLal consumer populaLlon buL also make
80 of all purchase declslons 1hey are belng speclflcally LargeLed by Lhe markeL because of
Lhelr growlng purchaslng power and Lhelr 'worklngwoman sLaLus now women have Lhe dual
role of famllymakers and work professlonals Lo play As a resulL Lhey have less Llme lncreased
pressures and are slowly belng dellnked from Lhelr LradlLlonal knowledge bank 1he markeL
Lakes advanLage of Lhls slLuaLlon by offerlng Lo women lnsLanL servlces and producLs llke fasL
food 'LwomlnuLe snacks and refrlgeraLors and washlng machlnes wlLh supposedly beLLer
Lechnologles

Jomen consumers have Lhe responslblllLy of chooslng producLs LhaL are noL [usL convenlenL
buL also safe Lo use and ecofrlendly 1hey musL evaluaLe Lhe nuLrlLlon conLenL of food producLs
before buylng Lhem and welghL Lhelr quallLy wlLh LradlLlonal foods LhaL are lessexpenslve have
beLLer nuLrlLlonal scores and consume less resources llke packaglng and LransporLaLlon

Case Study 1
lnLernaLlonal banklng ma[or ClLl 8ank has been lmposed a flne of 8s 30000 by Lhe counLry's
apex consumer forum for flllng merlLless" peLlLlons agalnsL lower consumer fora order asklng
lL Lo pay 8s 180 lakh Lo one of lLs car loan cusLomers
1he naLlonal Consumer ulspuLe 8edressal Commlsslon dlsmlssed ClLy 8ank's plea challenglng
Crlssa SLaLe Consumer Commlsslon order saylng lL has come before Lhe nCu8C Lo cover up"
lLs own faulLs and negllgenL acLs" ln belaLedly challenglng Lhe dlsLrlcL consumer forum order
whlch had dlrecLed Lhe bank Lo pay 8s 180 lakh Lo lLs car loan cusLomer Jhlle lmposlng
penalLy on Lhe bank !usLlce v 8 CupLa sald Lhe sLaLe consumer commlsslon had rlghLly
dlsmlssed lLs appeal agalnsL Lhe dlsLrlcL consumer forum as lL had flled lL afLer a delay of more
Lhan 3 years
lL ls well seLLled LhaL no lenlency should be shown Lo such llLlganLs who ln order Lo cover up
Lhelr own faulL and negllgence goes on flllng merlLless peLlLlons ln dlfferenL fora" Lhe nCu8C
sald As Lhe Lwo fora below have glven deLalled and reasoned orders whlch do noL call for any
lnLerference nor Lhey suffer from any lnflrmlLy or erroneous exerclse of [urlsdlcLlon Lhe presenL
peLlLlon ls dlsmlssed wlLh punlLlve cosLs of 8s 30000" lL sald
ClLl 8ank had approached Lhe apex consumer forum agalnsL Lhe order of Crlssa consumer
forum whlch had declded noL Lo hear lLs plea afLer a dlsLrlcL consumer forum dlrecLed Lhe bank
Lo pay 8s 18 lakh Lo Crlssa buslnessman radeep kumar aLrl aLrl had purchased a car on a
loan from Lhe ClLl 8ank ln 2006 and was Lo pay 60 LMls vla posLdaLed cheques Pe had moved
Lhe dlsLrlcL forum alleglng LhaL Lhe bank dld noL furnlsh accounLs deLalls Lo hlm as Lo wheLher
Lhere ls any ouLsLandlng dues and Lhe vehlcle was ununauLhorlsedly repossessed" ln CcLober
10 2006
1he bank ln lLs reply sald some posLdaLed cheques lssued by Lhe cusLomer had bounced due Lo
whlch lnsLallmenLs were noL reallsed 1he bank had resold Lhe vehlcle Lo anoLher person ln
ChhaLLlsgarh a monLh laLer 1he dlsLrlcL forum ln !anuary 2008 ordered ClLl 8ank Lo refund 8s
174 lakh Lo Lhe complalnanL and also pay 8s 3000 as compensaLlon for menLal agony" and 8s
1000 as llLlgaLlon cosL
AfLer Lhe sLaLe consumer commlsslon dlsmlssed Lhe bank's appeal agalnsL Lhe dlsLrlcL forum
order on Lhe grounds of delay lL moved nCu8C clalmlng lL had been followlng Lhe case ln Lhe
dlsLrlcL forum buL lLs lawyer dld noL lnform lL as Lo when lL gave Lhe order
1he nCu8C however re[ecLed lLs plea saylng ClLl 8ank ls a mulLlnaLlonal bank havlng large
number of employees ln lLs legal deparLmenL and lL dld noL flle Lhe appeal ln Llme only due Lo
negllgence"(1l)

keferences
1) wwwconsumerorg
2) wwwconsumer behavlourcom
3) wwwconsumernlcln
4) wwwauLhersLreamcom
3) Case hLLp//wwwrLlLodaycom/deLallarLlclephp?arLlcleld1327