INTRODUCTION

Consumer protection laws are designed to ensure fair trade competition and the free

flow of truthful information in the marketplace. The laws are designed to prevent

businesses that engage in fraud or specified unfair practices from gaining an advantage

over competitors and may provide additional protection for the weak and those unable

to take care of themselves. Consumer Protection laws are a form of government

regulation which aim to protect the MADs of consumers. For example, a government

may require businesses to disclose detailed information about products—particularly in

areas where safety or public health is an issue, such as food. Consumer protection is

linked to the idea of "consumer rights" (that consumers have various rights as

consumers), and to the formation of consumer organizations which help consumers

make better choices in the marketplace.

Consumer is defined as someone who acquires goods or services for direct use or

ownership rather than for resale or use in production and manufacturing.

“MODU" or "consumer law" is considered an area of law that regulates private

law relationships between individual consumers and the businesses that sell those

goods and services.

Consumers play a vital role in the economic system of a nation because in the absence

of effective demand that emanates from them, the economy virtually collapses.

Mahatma Gandhi said, "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 favour to a consumer by

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

serve him”.

But, of late, unfortunately cheating by way of overcharging, black marketing, misleading

advertisements, etc has become the common practice of greedy sellers and

manufacturers to make unreasonable profits. It is the duty of the government to confer

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some rights on consumers to safeguard their interests.Pursuant to the common law

doctrine of caveat emptor; the buyer could not recover from the seller for defects on the

property that rendered the property unfit for ordinary purposes. Caveat emptor is Latin

for let the buyer beware. Both Congress and state legislatures have enacted consumer

protection laws intended to limit abuses inherent in the common law approach that

would have the buyer beware. A person violating the provisions of a consumer

protection statute is generally liable even though there was no intention to violate the

law. Liability also exists even though the breach was a single occurrence rather than a

pattern of repeated conduct. The word consumer refers to individuals or households

that use goods and services generated within the economy

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CONSUMER PROTECTION ACT, 1986

On March 15, 1962, US President John F Kennedy made a historical speech about

consumer rights as he introduced The Consumer Bill of Rights in the US Congress.

Ever since, consumers all over India (and the world) have celebrated March 15 as the

National Consumers’ Day.

Kennedy strongly believed that it is vital to United States’ National Interest to ensure the

welfare of the consumers, as it is the consumer who fundamentally drives the economy.

He formulated four rights for consumers, namely the right to safety, right to

choose, right to information and right to be heard which, in 1985, was accepted by

the United Nations (UN). The UN added the right to basic needs, right to

representation, right to consumer education, and right to healthy environment.

In the Consumer Protection Act 1986 in India; six of the following

consumer rights have been recognized.

Right to Safety

As stated in the Consumer Protection Act 1986, this consumer right is defined as the

‘right to be protected against marketing of goods and services which are

hazardous to life and property’. Specifically significant in areas such as healthcare,

food processing and pharmaceuticals, this right spans across any domain that could

have a serious impact on the consumers’ health or well being such as Automobiles,

Travel, Domestic Appliances, Housing etc.

Right to Information

This consumer right is defined as the ‘the right to be informed about the quality,

quantity, potency, purity, standard and price of goods or services, as the case

may be so as to protect the consumer against unfair trade practices’ in the

Consumer Protection Act of 1986. In the Indian market place, consumers get consumer

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information through two popular, yet unreliable means, namely advertising and word of

mouth. Due to this, the consumers in India seldom have accurate and complete

information to assess the true value, suitability, safety or reliability of any product.

Mostly we find out hidden costs, lack of suitability, safety hazards and quality problems

only after we have purchased the product. Another right again trumpeted by our

government on paper, this right should ideally ensure that all consumable products are

labeled in a standard manner which contains the cost, the ingredients, quantity, and

instructions on how to safely consume the product. Unfortunately, even the medicines in

India do not follow a standard labeling convention. Unit price publishing standards need

to be established for consumer market places where costs are shown in standard units

such as per kilogram, or per liter. We, as consumers, should be informed in a precise

yet accurate manner of the costs involved when availing a loan. For benefit to the

society from this right, advertisers should be held against the product standards in the

advertisements, pharmaceuticals need to disclose potential side effects about their

drugs, and manufacturers should be required to publish reports from independent

product testing laboratories regarding the comparison of the quality of their products

with competitive products, just to name a few.

Right to Choose

Consumer Protection Act 1986 defines this right as ‘the right to be assured, wherever

possible, to have access to a variety of goods and services at competitive prices’.

Competition, invariably, is the best regulator of a market place. Existence of oligopolies,

cartels and monopolies are counterproductive to consumerism. How often have you

noticed a conglomerate of companies that lobby the government to compromise

consumer rights? Our natural resources, telecommunications, liquor industry, airlines

have all been controlled by a mafia at some point. Coming from a socialistic

background, tolerance of monopolistic market forces are ingrained in the blood of Indian

Consumers. It is not very often we can say we are going to switch the power company,

when we have a blackout at home! Interestingly, even micro markets such as the fish

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vendors in particular cities have known to collude to drain the bargaining power of the

consumers. In any size, any form, or any span, collusion of companies selling a similar

type of product is unethical, less illegal.

Right to be Heard

According to the Consumer Protection Act 1986, ‘the right to be heard and to be

assured that consumer's interests will receive due consideration at appropriate

forums’ is referred to as the right to be heard. This right is supposed to empower Indian

consumers to fearlessly voice their complaints and concerns against products and

companies to ensure their issues are handled efficiently and expeditiously.

Right to Redressal

The right ‘to seek redressal against unfair trade practices or restrictive trade

practices or unscrupulous exploitation of consumers’ is defined as the right to

redressal in the Consumer Protection Act 1986. The Indian Government has been

slightly more successful with respect to this right. Consumer courts such as District

Consumer Disputes Redressal Forums at the district level, State Consumer

Disputes Redressal Commissions and National Consumer Disputes Redressal

Commissions have been established through the consumer protection act. Each

of these consumer grievance redressal agencies has fiduciary and geographical

jurisdictions to address consumer cases between consumers and businesses.

Consumer cases less than 20 lakhs are heard in the district consumer forum, between

20 lakhs and one crore are heard in the state consumer court and cases more than one

crore are heard in the national consumer court.

Right to Consumer Education

The right of each Indian citizen to be educated on matters related to consumer

protection and about his/her rights is the last right given by the Consumer

Protection Act 1986. This right simply ensures that the consumers in India have

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access to informational programs and materials that would enable them to make better

purchasing decisions. Consumer education may mean both formal education through

school and college curriculums and also consumer awareness campaigns run by both

governmental and non governmental agencies (NGO). Consumer NGOs, with little

support from the Indian government, primarily undertake the ardent task of ensuring this

consumer right around the country.

Consumer Protection Act, 1986 is an important Act in the history of the consumer

movement in the country. The Act was made to provide for the better protection and

promotion of consumer rights through the establishment of consumer councils and

quasi-judicial machinery. It is mile stone in the history of socio-economic legislation and

directed towards public welfare and public benefits.

The CPA was passed by the Lok Sabha on 5th December 1986 and Rajya Sabha

on 10th December, 1986 and assented to by the president in the Gazette of India.

Under the Act, consumer disputes redressal agencies have been set up throughout the

country with the District Forum at the District level, State Commission at the State

level and National Commission at national level to provide simple, inexpensive and

speedy justice to the consumer with complaints against defective goods, deficient

services and unfair and restrictive trade practices.

The Law relating to consumer protection in India is at recent origin and is developing

slowly, day by day, with the pronouncement of orders passed by the commissions

constituted under the Act all over India and the National Commission. However the

presence of some The Consumer Protection Act, 1986, is a benevolent social legislation

that lays down the rights of the consumers and provides there for promotion and

protection of the rights of the consumers.

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The first and the only Act of its kind in India, it has enabled ordinary consumers to

secure less expensive and often speedy redressal of their grievances. By spelling out

the rights and remedies of the consumers in a market so far dominated by organized

manufacturers and traders of goods and providers of various types of services, the Act

makes the dictum, caveat emptor (‘buyer beware’) a thing of the past.

The Act mandates establishment of Consumer Protection Councils at the Centre as well

as in each State and District, with a view to promoting consumer awareness.

 The Central Council is headed by Minster, In-charge of the Department of Consumer

Affairs in the Central Government and the State Councils by the Minister In-charge of

the Consumer Affairs in the State Governments. It also provides for a 3-tier structure of

the National and State Commissions and District Forums for speedy resolution of

consumer disputes.

 To provide inexpensive, speedy and summary redressal of consumer disputes, quasi-

judicial bodies have been set up in each District and State and at the national level,

called the District Forums, the State Consumer Disputes Redressal Commissions and

the National Consumer Disputes Redressal Commission respectively.   At present,

there are 604 District Forums and 34 State Commissions with the National

Consumer Disputes Redressal Commission (NCDRC) at the apex. 

 The provisions of this Act cover ‘goods’ as well as ‘services’.  The goods are those

which are manufactured or produced and sold to consumers through wholesalers and

retailers.  The services are in the nature of transport, telephone, electricity, housing,

banking, insurance, medical treatment, etc. 

 If a consumer is not satisfied by the decision of a District Forum, he can appeal to the

State Commission. Against the order of the State Commission a consumer can come to

the National Commission.

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The Consumer Protection Act, 1986 was enacted for better protection of the interests of

consumers. Consumer Protection Act imposes strict liability on a manufacturer, in case

of supply of defective goods by him, and a service provider, in case of deficiency in

rendering of its services. The term “defect” and “deficiency”, as held in a catena of

cases, are to be couched in the widest horizon of there being any kind of fault,

imperfection or shortcoming. It covers to all the sectors whether private, public, and

cooperative or any person. The provisions of the Act are compensatory as well as

preventive and punitive in nature and the Act applies to all goods covered by sale of

goods act and services unless specifically exempted by the Central Government.

WHO IS A CONSUMER?

A consumer is any person who buys any goods for a consideration and user of such

goods where the use is with the approval of buyer, any person who hires/avails of any

service for a consideration and any beneficiary of such services, where such services

are availed of with the approval of the person hiring the service.  The consumer need

not have made full payment.

All of us are consumers of goods and services. For the purpose of the Consumer

Protection Act, the word "consumer" has been defined separately for "goods" and

"services".

For the purpose of "goods", a consumer means a person belonging to the

following categories:

(i) One who buys or agrees to buy any goods for a consideration which has been paid

or promised or partly paid and partly promised or under any system of deferred payment

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(ii) It includes any user of such goods other than the person who actually buys goods

and such use is made with the approval of the purchaser.

Note: - A person is not a consumer if he purchases goods for commercial or resale

purposes. However, the word "commercial" does not include use by consumer of goods

bought and used by him exclusively for the purpose of earning his livelihood, by means

of self employment.

For the purpose of "services", a "consumer" means a person belonging to the

following categories:

(i) One who hires or avails of any service or services for a consideration which has been

paid or promised or partly paid and partly promised or under any system of deferred

payment

(ii) It includes any beneficiary of such service other than the one who actually hires or

avails of the service for consideration and such services are availed with the approval of

such person.

An enlightened consumer is an empowered consumer. An aware consumer not only

protects himself from exploitation but induces efficiency, transparency and

accountability in the entire manufacturing and services sector. Realizing the importance

of consumer awareness, Government has accorded top priority to ‘Consumer

Education, Consumer Protection and Consumer Awareness. India is a country, which

has taken a lead in introducing progressive legislation for consumer protection. The

most important milestone in Consumer Movement in the country has been the

enactment of the Consumer Protection Act, 1986. The Act has set in motion a revolution

in the field of consumer rights that perhaps cannot be paralleled anywhere else in the

World. The Act applies to all goods and services unless specially exempted by the

Central Government, in all sectors whether Private, Public or Co-operative.

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CONSUMER RESPONSIBILITIES

The country now has exclusive special law to protect the interest of the consumer with a

foolproof redressal mechanism in case of defective goods and unsatisfactory services. 

Hence the welfare of consumers now remains in their own hands.  If the consumers

are responsible, vigilant and are able to assert their rights and responsibilities,

resist/reject substandard goods/services wherever required and do not hesitate to seek

justice through consumer courts if needed, the manufacturers, traders and service

providers cannot afford to take them for granted while selling a product or rendering

service on payment or by adopting any unfair trade practice. 

An alert consumer aware of his rights and responsibilities not only can protect himself

but can also make consumer sovereignty a reality. The success of the consumer

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movement in India depends on the vigilance of the consumer with regard to their rights

and responsibilities. As consumers become more conscious of their rights, they are able

to voice their concerns better.

The Responsibility, To Beware and alert to the quality and safety of goods and

services before we buy them.

The Responsibility, To Be Aware and to gather all the information and facts

available about a product or service as well as to keep abreast of changes and

innovations in the marketplace.

The Responsibility of Thinking Independently and making decisions about

well considered needs and wants.

The Responsibility, To Speak Out to inform manufacturers and governments of

our needs and expectations.

The Responsibility, To Complain and to inform businesses and other

consumers in a fair and honest manner of our dissatisfaction and satisfaction

with a product or service.

The Responsibility, To Be An Ethical Consumer and to be fair by not

engaging in dishonest practices which cost all consumers money.

The Responsibility, To Respect The Environment and avoid waste, littering

and contributing to pollution.

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PROTECTION OF CONSUMER RIGHTS

Consumer protection means safeguarding the rights and interests of consumers. It

includes all the measures aimed at protecting the rights and interests of consumers. 

Consumers need protection due to the following reasons:

1. Illiteracy and Ignorance: Consumers in India are mostly illiterate and ignorant. They

do not understand their rights. A system is required to protect them from unscrupulous

businessmen.

2. Unorganized Consumers: In India consumers are widely dispersed and are not

united. They are at the mercy of businessmen. On the other hand, producers and

traders are organized and powerful.

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3. Spurious Goods: There is increasing supply of duplicate products. It is very difficult

for an ordinary consumer to distinguish between a genuine product and its imitation. It is

necessary to protect consumers from such exploitation by ensuring compliance with

prescribed norms of quality and safety.

4. Deceptive Advertising: Some businessmen give misleading information about

quality, safety and utility of products. Consumers are misled by false advertisement and

do not know the real quality of advertised goods. A mechanism is needed to prevent

misleading advertisements.

5. Malpractices of Businessmen: Fraudulent, unethical and monopolistic trade

practices on the part of businessmen lead to exploitation of consumers. Consumers

often get defective, inferior and substandard goods and poor service. Certain measures

are required to protect the consumers against such malpractices.

6. Freedom of Enterprise: Businessmen must ensure satisfaction of consumers. In the

long run, survival and growth of business is not possible without the support and

goodwill of consumers. If business does not protect consumers' interests, Government

intervention and regulatory measures will grow to curb unfair trade practices.

7. Legitimacy for Existence: Business exists to satisfy the needs and desires of

consumers. Goods are produced with the purpose of selling them. Goods will, in the

long run, sell only when they meet the needs of consumers.

8. Trusteeship: Businessmen are trustees of the society's wealth. Therefore, they

should use this wealth for the benefit of people.

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METHODS OF CONSUMER PROTECTION

There are four main methods of protecting the interests of consumers:

1. Business Self-regulation: The business community itself can help in achieving

consumer protection and satisfaction through self -discipline. Businessmen can regulate

their own behaviour and actions by adopting higher ethical standards. Trade

associations and chambers of commerce can check unfair trade practices used by

some businessmen.

2. Consumer Self-help: Every consumer must be alert as self-help is the best help. He

should educate himself and know his rights. He should not allow unscrupulous

businessmen to cheat him.

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3. Consumers' Associations: Consumers should form voluntary associations. These

associations can educate and awaken consumers. They can take organized action and

put pressure on businessmen to adopt fair trade practices.

4. Government Regulations: The State can ensure consumer protection through

legislative, executive and judicial actions. The laws enacted by the Government must be

strictly enforced by the executive. Government of India has enacted several laws to

protect the interests and rights of consumers.

GOVERNMENT‘S INNOVATIVE CONSUMER CAMPAIGN

'JAGO GRAHAK JAGO'

With the focus on empowering consumers, the government has been implementing an

innovative and intensive multimedia campaign, "Jago Grahak Jago (Wake up

Consumer)" to create consumer awareness in the country. 

Consumer Awareness Scheme in the XI Plan

The Consumer Awareness Scheme for the XI Plan amounting to a total of  Rs. 409

crores has been approved by the Cabinet Committee on Economic Affairs on 24.01.08.

This scheme has been formulated to give an increased thrust to a multi media publicity

campaign to make consumers aware of their rights. The slogan 'JAGO GRAHAK

JAGO' has now become a household name as a result of publicity campaign

undertaken in the last 3 years. Through the increased thrust on consumer awareness in

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the XI Five Year Plan, the Government has endeavored to inform the common man of

his rights as a consumer.

As part of the consumer awareness scheme, the rural and remote areas have been

given top priority. In a big country like India, given the scenario of economic disparity

and level of education and ignorance, educating the consumers remains a gigantic task.

Government has taken up number of activities and schemes in creating consumer

awareness in the country as part of this Consumer Awareness Scheme.

India is a country with more than 70% population being under 35 years. The youngsters

are using the internet in a big way for various purposes and also happen to be major

consumers. Realizing this, a major initiative is being taken to spread consumer

awareness through the online medium. The advertisements being brought out by the

Department are also being displayed on the website of the Ministry www.fcamin.nic.in.

In 2005, the government set up the Consumer Online Resource and Empowerment

Centre (CORE)  to provide fast and convenient grievance redressal services as well as

consumer resources to the citizens of India. The Consumer Coordination Council a

premier organization in the field of consumer movement of India recommended the

setting-up of the CORE Centre.

With a view to promote Consumer Sovereignty, CORE works in the interest of

consumers to resolve their complaints and avoid unnecessary litigation for brands. It is

both an effective one point source for complaint redressal as well as a nodal agency to

protect the interests of Indian Consumers.

Joint Campaign

'JAGO GRAHAK JAGO' has become the focal theme through which issues concerning

the functioning of almost all Government Departments having a consumer interface can

been addressed. To achieve this objective joint campaigns have been undertaken/are

being undertaken with a number of Government Departments. The Department had run

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a joint campaign with Bureau of Energy Efficiency to educate people about energy

conservation by having awareness of the BEE star labels. A joint campaign with

National Pharmaceuticals Product Authority is being devised to educate consumers

about the various issues concerning pharma industry. Similarly, campaigns with

Reserve Bank of India, FICCI, Ministry of Urban Development (for real estate sector)

and HRD (for education sector) are being planned.

 The National Consumer Helpline, which has been the focus of the awareness

campaign, empowers consumers from all over the country to dial the toll-free

number 1800-11-4000 and seek telephonic counselling for problems that they face

as consumers.

CONSUMER PROTECTION AND CONSUMERISM IN INDIA

Plight of the Indian Consumer

An examination of the important problems facing the Indian consumer would

make clear the need for more effective government intervention and consumer

movement to safeguard consumer rights. The following factors make the plight of the

Indian consumer miserable.

1. Short supply of many goods and services, especially of essential items, is a

very serious problem afflicting the Indian consumer. The demand-supply

imbalance has produced all the associated evils of profiteering, hoarding and

black-marketing, corruption, nepotism, irresponsiveness and arrogance towards

consumers. Although the situation has improved as a result of the increase in

competition due to liberalization, it is still far from satisfactory.

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2. The Indian consumer is also the victim of lack of effective or workable

competition. “Competition among sellers, even though imperfect, may be

regarded as effective or workable if it offers buyers real alternatives sufficient to

enable them, by shifting their purchases form one seller to another, substantially

to influence quality, service, and price. Effective competition depends also upon

the general availability of essential information; buyers cannot influence the

behaviour of sellers unless alternatives are known. It requires the presence in the

market of several sellers, each of them possessing the capacity to survive and

grow, and the preservation of conditions which keep alive the threat of potential

competition among sellers is thus to be found in the availability of buyers of

genuine alternatives in policy among their sources of supply.”

3. Many products with which consumers in advanced countries are quite

familiar are still new to a very large segment of the Indian consumers. The

unfamiliarity of the consumers with product features makes the sale of

substandard, inferior or even defective products easier in India than in advanced

countries.

4. Due to low literacy levels and unsatisfactory information flows, the Indian

consumers, by and large, are not conscious of all their rights. This

encourages irresponsible and unscrupulous business attitudes and tactics.

5. It has been said that the legal process in India is comparatively time-

consuming and cumbersome. This discourages the consumers from seeking

the Redressal of their grievance by means of the judicial process.

6. Consumerism in India is not well organized and developed.

7. Though the public sector had not been developed and expanded to serve

the public interest by providing effective competition to the private sector,

increasing production, improving distribution, etc., it failed to produce

benefits that were commensurate with the investment.

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8. Though there are a number of laws to safeguard the interests of

consumers, they are not effectively implemented and enforced to achieve

the objectives.

9. Government Measures In India; the Government has taken a number of

measures to protect consumer interests. The various Government measures may

be classified into (i) statutory regulation of private business, and (ii) development

of the public sector.

WHAT IS CONSUMER COMPLAINT?

Under the Consumer Protection Act, a complaint means any allegation in writing

made by a complainant in regard to one or more of the following:-

1. Any unfair trade practice as defined in the Act or restrictive trade practices like tie-

up sales adopted by any trader.

2. One or more defects in goods. The goods hazardous to life and safety, when

used, are being offered for sale to public in contravention of provisions of any law

for the time being in force.

3. Deficiencies in services.

4. A trader charging excess of price.

(i)   Fixed by or under any law for the time being in force; or

(ii)  Displayed on goods; or

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(iii) Displayed on any packet containing such goods.

Procedures for filing complaints and seeking redressal are simple. There is no fee for

filing a complaint before the District Forum, the State Commission or the National

Commission. (A stamp paper is also not required). Three to five copies of the complaint

on plain paper depending on the number of opposite parties, etc. are required to be

filed.

JURISDICTION 

If the cost of goods or services and compensation asked for is up to rupees twenty lakh,

then the complaint can be filed in the District Forum which has been notified by the

State Government for the district where the cause of action has arisen or where the

opposite party resides. A complaint can also be filed at a place where the branch office

of the opposite party is located.

If the cost of goods or services and compensation asked for is more than rupees twenty

lakh, but less than rupees one crore then the complaint can be filed before the State

Commission notified by the State Government or Union Territory Concerned.

If the cost of goods or services and compensation asked for exceed rupees one

crore then the complaint can be filed before the National Commission at New Delhi.

LIMITATION

The District Forum, the State Commission or the National Commission shall not admit a

complaint unless it is filed within two years from the date on which cause of action has

arisen.

RELIEF AVAILABLE TO CONSUMER

Depending on the facts and circumstances, the Redressal Forums may give order for

one or more of the following relief.

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Removal of defects from the goods,

Replacement of the goods;

Refund of the price paid;

Award of compensation for the loss or injury suffered;

Removal of defects or deficiencies in the services;

Discontinuance of unfair trade practices or restrictive trade practices or direction not

to repeat them; Withdrawal of the hazardous goods from being offered to sale; or

Award for adequate costs to parties

CONTENTS OF CONSUMER COMPLAINT

 A complaint should contain the following information:-

(a) The name, description and the address of the complainant.

(b) The name, description and address of the opposite party or parties, as the case may

be, as far as they can be ascertained;

(c) The facts relating to complaint and when and where it arose;

(d) Documents, if any, in support of the allegations contained in the complaint.

(e) The relief which the complainant is seeking. 

The complaint should be signed by the complainant or his authorized agent. The

complaint is to be filed within two years from the date on which cause of action has

arisen.

 

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India has been observing 15 March since 1989 as the National Consumers’ Day.

This day has a historic importance as it was on this day in 1962, when the Bill for

Consumer Rights was moved in the US Congress. During his speech President John

F. Kennedy had remarked: 

“If a consumer is offered inferior products, if prices are exorbitant, if drugs are

unsafe or worthless, if the consumer is unable to choose on an informed basis,

then his dollar is wasted, his health and safety may be threatened, and national

interest suffers.” 

Every year 15th March is observed as the World Consumer Rights Day all over the

world. Since 1997, the observance of World Consumer rights’ day is an annual occasion

for celebration and solidarity within the international consumer movement. The day has

its origin in former US president John F. Kennedy’s declaration of four basic

consumer rights in his 15th March 1962 special message to the

US Congress such as:

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WORLD CONSUMER RIGHTS DAY

1. Right to safety

2. Right to be informed

3. Right to choose

4. Right to be heard

To these, consumers international (CI) added four more rights:

1. Right to satisfaction of basic needs

2. Right to redress

3. Right to education

4. Right to a healthy environment

World Consumer Rights Day was first observed on 15th March, 1983. Two years later,

on 9th April 1985, the United Nations general assembly adopted the UN guidelines for

consumer protection. In India, the Consumer protection Act, 1986 is an important Act in

the history of the consumer movement in the country. The Act was made to provide for

the better protection and promotion of consumer rights through the establishment of

consumer councils and quasi-judicial machinery. A vigilant consumer can contribute

in reducing the problem of sub-standard, defective goods, deficiency services,

adulteration, unfair trade practices, etc to a large extent. The responsibility for the

promotion and protection of consumer rights rest with all of us and more particularly

with governmental   agencies .

BIRTH OF CONSUMERS’ DAY  

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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. 

India is a country, which never fell behind in introducing progressive legislation - we

were among the first in the world to introduce universal adult franchise for women. 

BIRTH OF ‘COPRA’ 

The right to redress lead to the passing of the Consumer Protection Act (COPRA)

in 1986 in India which has been defined as the Magna Carta of consumers but, it

recognizes only six of these eight rights: 

1. Safety

2. Information

3. Choice

4. Representation

5. Redress

6. Consumer Education

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INDIA’S GLOBAL REPUTATION  

The most important milestone in Consumer Movement in the country has been the

enactment of the Consumer Protection Act, 1986. The Act applies to all goods and

services unless specially exempted by the Central Government, in all sectors whether

private, public or co-operative. This Act has been regarded as the most progressive,

comprehensive and unique piece of legislation.

In the International conference on consumer protection held in Malaysia, the

Indian Consumer Protection Act was described as one “which has set in motion a

revolution in the fields of consumer rights, the parallel of which has not been

seen anywhere else in the world.”

 As consumers we are dependent on the markets for meeting our needs and

wants. At present we have around 24 legislations in India for protecting the consumers.

We have moved from the situation of caveat emptor, i.e. let the buyer beware to a

situation of caveat venditor i.e., the marketer or the vendor needs to be careful and

responsible when he sells goods and services to the consumers. Amongst the various

laws for the protection of the consumers, the foremost is the Consumer Protection Act

in India.

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Laws, rules, regulations and orders (for which India has unparalleled distinction in the

Guinness book of records) alone do not protect consumers, but it is the rights’

movement of people which produce results in a democracy. 

One of the greatest achievements of the Indian consumer movement is the enactment

of the dynamic consumer law: COPRA. Coming 39 years after Independence, it has

acknowledged the rampant consumer abuses, including those of the government owned

public utilities like telephones, transport, power etc. These utilities, in the first place,

were created as state monopolies ostensibly to protect consumers! 

Critics of COPRA rightly conclude that it can’t do anything about rising prices, but it has

succeeded in bringing about fair play in the supply of goods and services available in

the market place, giving substance to the adage: Customer is King. Also, COPRA has

encouraged active consumer bodies to demand, and perhaps see in the near future,

independent Public Utility Regulatory Commissions to debate costing, pricing and

promote competition. 

In fact the Central Consumer Protection Council has recommended to the Government

to enact a Freedom of Information Act on the pattern of a similar law in the US. Another

major achievement of the Indian consumer movement in the context of the world

scenario was to get the government in 1989, to adopt 15 March, the World

Consumer Rights Day, as the National Consumers’ Day. Unlike the Labour Day on 1

May, which has roots in the US, the Consumer Rights Day, which also has roots in the

US, is not even observed there? 

Today India is the only country in the world, which has exclusive courts for

consumer redressal. At the IOCU’s 13th World Congress held in Hong Kong during 7-

13 July 1991 it came in for praise and developed countries were called upon to emulate.

In the same year, these developments inspired Jim Sugarman, a noted US consumer

activist and a close associate of Ralph Nader, to candidly observe: “India is getting a

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global reputation for the rapid development of its consumer movement.”  

 

CONCLUSION

Invariably, consumers are a vulnerable lot for exploitation, more so in a developing

country with the prevalence osf mass poverty and illiteracy. India too is no exception to

it. Instances like overcharging, black marketing, adulteration, profiteering, lack of proper

services in trains, telecommunication, water supply, airlines, etc are not uncommon

here. From time to time, the government has attempted to safeguard consumer's

interests through legislations and the CPA 1986 is considered as the most progressive

statute for consumer protection.

Procedural simplicity and speedy and inexpensive redressal of consumer grievances as

contained in the CPA are really unique and have few parallels in the world.

Implementation of the Act reveals that interests of consumers are better protected than

ever before. However, consumer awareness through consumer education and actions

by the government, consumer activists, and associations are needed the most to make

consumer protection movement a success in the country.

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