Centre for Consumer Studies Indian Institute of Public Administration. National Seminar on Consumer Protection in India: The Way Forward

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1 Centre for Consumer Studies National Seminar on Consumer Protection in India: The Way Forward (February 1-2, 2012) 1. About the Seminar Liberalisation, Privatisation and Globalization (LPG), have promoted competition in the markets and have widened consumer choice in terms of quality and service. No doubt in many countries the position of the consumers may have improved, but the emergence of market economies and the process of economic liberalization have also generated unexpected social problems. The economic reforms implemented from the 1980s onwards in many countries have paid little attention to the consequences of such reforms for consumers. In this era of LPG, consumerism is an all-pervasive term meaning nothing more than people s search for getting better value for their money. Consumerism is a social movement which concerns protection of the interests of the consumers in relation to the producers of goods and providers of services. It also refers to wide range of activities of government, business and independent organizations designed to protect the rights of the consumers. It is a process through which the consumers seek redress, restitution and remedy for their dissatisfaction and frustration with the help of their organized or unorganized efforts and activities. In fact consumerism is a movement of policies aimed at regulating the products or services, methods or standards of manufacturers, sellers and advertisers in the interest of buyers. Such regulation may be institutional, statutory or embodied in a voluntary code by a particular industry or it may result more indirectly from the influence of consumer organizations. With increasing concern over consumer protection, the issue is getting attention both at international and national level. In its wider perspective, consumer protection seems as an item on the agenda of administrative reforms world over, with a view to promote the environment and culture of good governance. In this regard, the Government of India enacted a number of legislations for regulating the 1

2 business and protecting the consumers, thereby promoting the welfare of the society. The most important of these legislations is the Consumer Protection Act, 1986 enacted with the primary purpose of ensuring speedy redressal of consumer grievances. It is a milestone in the consumer protection movement in the country. Its implementation has opened up a wide scope for giving relief to the otherwise unprotected rather exploited consumers. The Consumer Protection Act enacted in 1986 has completed twenty five years of its enactment in December An effective, efficient and fair implementation of the Consumer Protection Act is one of the conditions precedent for promoting the culture of good governance and thereby ensuring better promotion and protection of the rights of consumers. After twenty five years of the enactment of the Act, and three amendments, the Act has achieved a considerable amount of success. The Act to a large extent has given a boost to the consumer movement in the country and also provided a mechanism to the consumers to redress their grievances, which has been availed by lakhs of people. The three tier redressal machinery has been able to give relief to a number of aggrieved consumers. However, at the same time there are certain grey areas in the implementation of the Act which need to be addressed. Further with the technological advancements and emergence of e-commerce the consumers are facing new challenges. Keeping this in view the National Seminar on Consumer Protection in India: The Way Forward was organized by the Centre for Consumer Studies, on February 1-2, 2012 to commemorate the silver jubilee of the enactment of the Act and to evaluate the achievements of the Consumer Protection Act in the last 25 years. The seminar also attempted to evolve new strategies to strengthen the consumer movement in the country in order to meet new challenges. It provided a larger platform for exchange of ideas on various issues concerning consumers and the achievements of the Consumer Protection Act. The seminar was sponsored by the Government of India. More than 650 participants from all over the country including policy makers, academicians, members of Voluntary Consumer Organisations and civil society organizations, researchers and students participated in the seminar. The seminar was divided into six technical sessions which included panel discussions on 25 2

3 Years of CP Act: What Have We Achieved?; Consumer Rights and Services: Meeting Expectations; Media and the Consumer: Leading or Misleading; Standards and Consumer Safety: Building Consumer Confidence besides inaugural session and valedictory sessions. 2. Session One: Inaugural Session The Seminar opened with a Welcome Address by Shri Rajiv Agarwal, Secretary, Department of Consumer Affairs, Government of India. He said that the evolution of the Consumer jurisprudence began in India in the year 1986 with the enactment of Consumer Protection Act and creation of a three tier quasi-judicial bodies across the country. For the common man the Act was a blessing in many beneficial ways freedom from exploitation, freedom from ignorance and empowerment. Today, the Consumer Protection Act has succeeded in having a sobering effect on the markets, forcing the providers of goods and services to introspect and internalize the concept of consumer welfare and address consumer grievances more diligently. Although the implementation of the Consumer Protection Act can be viewed as a success, there are still serious shortfalls in achieving consumer welfare because of the deficiencies in quality infrastructure in the country. Consumers need to be made quality conscious and demand value for their money. He said that there is absence of consumer demand for quality goods and services primarily due to lack of awareness among them regarding quality issues. The level of consumer awareness and protection is a true indicator of the development of a country and the progressiveness of its civil society. The major hurdle that comes in the way of the exercise of rights is the lack of awareness among the people about legal provisions and processes. Expanding legal literacy is very important. Shri Rajiv Agarwal, Secretary, GoI delivering the Welcome Address 3

4 Dignitaries on the Dias Lighting of the lamp by the Hon ble Minister Prof. K.V. Thomas 4

5 He said that the Government of India has taken many steps to further strengthen the consumer movement in the country and to protect their interests. The Government s initiative to give impetus to consumer movement includes schemes like Jago Grahak Jago campaign. The Government has also involved voluntary consumer organizations and activists in this endeavor. The Consumer courts have delivered landmark judgments in many spheres and have been a constant source of hope to the consumers. New initiatives have been taken for wider coverage and larger impact of consumer awareness and protection measures like setting up of State Consumer Helplines. Delivering the Keynote Address Dr. Rakesh Hooja, Director, IIPA said that the importance and utility of consumerism and the concern for consumer care has considerably increased in the recent past. Today protection of consumers interest has become a matter of serious as public bodies. Consumer protection is a two-way process; it requires not just regulation and oversight of businesses but also ensuring that consumers are adequately equipped to confront the array of choices available to them. There is no doubt that the business (i.e. manufactures, traders, service providers) are totally dependent on the consumers and hence no country can knowingly or unknowingly disregard the interest of the consumers as the satisfaction of the consumers generates confidence and in the confidence lies the credibility and stability of the system. Dr. Rakesh Hooja, Director, IIPA delivering the Keynote Address There is no denying the fact that the Consumer Protection Act provides reasonably comprehensive protection to the consumers but it is also a fact that legislations in themselves do not bring about reforms. It is the effective implementation that brings about the required changes. Therefore, an effective, efficient and fair implementation of the Consumer Protection Act is one of the 5

6 conditions precedent for promoting the culture of good governance and thereby ensuring better promotion and protection of the rights of consumers. The working of the consumer foras is riddled with certain problems like delay in disposal of cases resulting in pendency, lack of proper infrastructure, involvement of advocates which unnecessarily complicates the proceeding, and moreover the proceedings are becoming too technical for the aam consumer to understand. Further due to the opening up of the economy and rapid changes in the consumption pattern of the modern day consumer, the consumer movement is facing new challenges, which calls for new approaches and strategies. There are issues like lack of assurances about quality of goods and services, non- application of the guarantee or warranty rules, absence of protection from hazardous goods and services, unfair trade practices, misuse of plastic money, internet related frauds and crimes etc. which are posing serious concerns for the governments world over. He emphasized that consumers are now expected to assume responsibility not only for exerting their individual and collective rights, but also show through their attitudes and behaviour patterns, responsibility towards the environment, other consumers and future generations. We all as consumers have a responsibility to come together and organize in order to enhance the strength and influence required to promote and protect our interests to make the consumer movement a success. During the first 25 years of the Consumer Protection Act the focus of the consumer movement has been on the rights of consumers. In the next 25 years we need to, in addition, also emphasize the duties of consumers so that a proper balance between consumers rights and duties is maintained since that is the need of the country today. Moreover, there is need for harmonization between the legislations, education and consumer movement. Finding a right balance between these elements is certainly a major concern for the consumer movement today. 6

7 Release of book Consumer Protection in India: Issues and Concerns published by IIPA to commemorate the silver jubilee of CP Act by Prof. K.V. Thomas, Hon ble Minister of State (Independent Charge) of Consumer Affairs, Food and Public Distribution The occasion was marked by release of books by Prof. K. V. Thomas, Hon ble Minister of State (Independent Charge), Consumer Affairs, Food and Public Distribution, Government of India. These included special volume on Consumer Protection in India: Issues and Concerns published by IIPA to commemorate the silver jubilee of CP Act which contains message by Prof. K.V. Thomas, Hon ble Minister of State (Independent Charge) of Consumer Affairs, Food and Public Distribution, Government of India and Foreword by Shri Rajiv Agarwal, Secretary, Department of Consumer Affairs, Government of India. The book contains papers contributed by well known experts. Besides this, another Book Emerging Perspectives in Consumer Welfare: Twenty Five Years of the Consumer Protection Act published by IIPA highlighting some of the issues confronting the consumers today was also released by the Hon ble Minister. The book contains foreword by Dr. Rakesh Hooja, Director, IIPA, New Delhi. Book Emerging Perspectives in Consumer Welfare: Twenty Five Years of the Consumer Protection Act released by the Hon ble Minister 7

8 Publications of GIZ being released by the Hon ble Minister Participants of the National Seminar 8

9 Both the books are edited by Prof. Suresh Misra, Chair Professor, CCS, IIPA, and Dr. Sapna Chadah, Assistant Professor, CCS, IIPA, New Delhi. Awareness material prepared by GIZ which included Teacher s Kit, What is Waste A Beginner s Handbook on Smart Waste Management and Brochure on What is Waste were also released on the occasion. Prof. K. V. Thomas, Hon ble Minister of State (Independent Charge), Consumer Affairs, Food and Public Distribution delivering the Inaugural Address Prof. K. V. Thomas, Hon ble Minister of State (Independent Charge), Consumer Affairs, Food and Public Distribution, Government of India in his Inaugural Address said that 25 years of progressive consumer movement, since the coming into force of the Consumer Protection Act, also presents an ideal opportunity for us to re-focus on how best to meet future challenges of the consumer movement. Indeed, consumer policy is steadily moving into the forefront of our policy agenda. An effective consumer movement drives out inefficient manufacturers out of the market and rewards the efficient and innovative ones. The Consumer Protection Act, 1986 being the pivotal, the government, consumer activists and associations have to come together to make consumer protection movement quite successful. The completion of 25 years of the implementation of the Consumer Protection Act provides us with an opportunity to assess what has been achieved and what still needs to be done. The future of consumer protection will no doubt rely on cooperation between Central and State governments. The Federal system of government will mean that there will be many Constitutional constraints that restrict the Centre s powers in many areas. A co-operative approach will result in uniform implementation of consumer protection laws and rules across all jurisdictions. Our future strategy will focus on the consumer and will be based on safety, information and education, redressal and the enforcement of rights. The future strategy of 9

10 Consumer policy is to be built on three over-arching objectives to empower consumers and to widen choice; to enhance their welfare and educate them how to choose; and to give consumers effective protection and recourse. Consumer information and education have been identified as the two most important areas of concentration. In addition to effective tools for enforcement, we need effective mechanisms for redressal of grievances when things go wrong. We have initiated steps with possibilities for an individual consumer to take up alternative dispute resolution mechanisms such as mediation or conciliation. The dreams of a nation marching forward with contribution from all cannot become a reality until every consumer is assured of refreshing winds of empowerment, which can give them the joy of being in charge of their destiny in terms of quality products and services. Let us all therefore, join hands together in this noble journey to celebrate the joy of empowerment of the consumers of India that will result in increased benefits to one and all and, ultimately leading to a prosperous and growing economy that will become the envy of global community. 10

11 Shri Pankaj Agrawala, Additional Secretary, Department of Consumer Affairs, GoI delivering the Vote of Thanks Nukkad Natak by Bangla.com 11

12 3. Session Two: 25 Years of Consumer Protection Act: What Have We Achieved? Mrs. Rajyalakshmi Rao, Former Member, NCDRC delivering her Opening Remarks in the second session on 25 years of Consumer Protection Act: What Have We Achieved The second session on 25 years of Consumer Protection Act: What Have We Achieved? was chaired by Mrs. Rajyalakshmi Rao, Former Member, NCDRC. In her Opening Remarks she said that for the success of the consumer movement and the legislation it is necessary to make the consumer important and give priority. According to her the Consumer Protection Act has certainly changed the quality of life and its impact is clearly visible. The judgments of the consumer foras can really make a difference. There is need to invent ways and give interpretations which promotes the cause of consumers. The quality of decisions can give impetus to the consumer movement and build confidence among the consumers. The introduction of the Hallmark scheme was result of a complaint filed by an NGO and only after the decision by NCDRC on the matter it was taken seriously by the Central and State governments. Prof. S. S. Singh, Director, National Law Institute University, Bhopal traced the growth of consumer movement in India. He said it was primarily the demand from NGOs and civil society which resulted in the enactment of CPA. The enactment of the Act was initially accompanied with doubt, decent and discard. Doubt whether the law will be able to protect the Prof. S.S. Singh, Director, NLIU, speaking on the occasion 12

13 consumers or not, which was followed by decent and discard from consumers. The second phase was phase of systemisation, synergy and stability provided by three amendments of 1991, 1993 and 2003 which took the movement forward. After 2003 amendment came the phase of respect, reward and recognition which involved inclusion of consumer welfare in the 11 th Plan and consideration of the same in 12 th Plan. Progress can be seen in the modernization of the whole system. Consumer Protection Law and Policy is also an indication of good governance in the Country. Even in the strengthening of the citizenship, strengthening the consumer rights can play an important role. However, the question arises, are we satisfied with this development? No doubt till now 33 lakh complaints have been disposed of by the consumer foras which in itself is a huge number and this disposal can be viewed from various perspectives. Had these forums not been created these 33 lakhs cases would have piled before the civil courts. No doubt there have been varied experiences some good, some bad. The social welfare legislation is bound to change as new challenges crop up. To operationalize further reforms amendments are required. The fourth amendment to the Act has been introduced which has around 22 sections which will introduce major changes. Now it is hoped that we will have an Act which is refaced and redone and meet the expectations of the consumers in a better way. Further if the State Governments respond to the needs of the foras definitely it will make the movement a success. Prof. M. K. Balachandran, Director, Amity Law School addressing the participants Prof. M.K. Balachandran, Director, Amity Law School, Noida speaking on the subject said that the first study on the CPA was done in 1994 by IIPA according to which the level of awareness was only 6 percent. A recent study by CUTS, Jaipur has reported that around 37% of the consumers have heard about CPA, which is quite an improvement over the earlier situation but a lot needs to be achieved as far as the success of the movement is concerned. The greatest achievement during the last 25 years has been the credibility and recognition of the consumer foras by majority of the 13

14 consumers in the country. The Consumer courts have found prominent place in the hearts and minds of the consumers. Now they cannot imagine a situation where the consumer courts are not available to redress their grievances. The other achievement is the acceptance and approval by the Supreme Court through its various judgments the constitutional validity of the Act. Through a number of judgments of the Supreme Court and National Commission he traced the evolution of consumer jurisprudence in India and emphasized that it is a citizen centric enactment which involves initiative and assertive actions on part of the citizens to make it effective and useful. The Supreme Court has categorically declared that the provisions of the Act should be construed in favour of consumers without violating the law. He also highlighted some of the grey areas which need consideration by the government and policy makers and need to be addressed in future amendments. He emphasized that there is need for spreading awareness about the Act and the remedies available under it among the rural populations, as presently the awareness is more among the urban population. Shri R. Desikan, Consumer Activist, Consumer Association of India, Chennai said that the answer to the question, Is the Consumer a King? is big No. He lamented that the dust of 25 years has gathered on Consumer Protection Act which was enacted with good and noble intentions, which was so sacred and intended to be simple. The real purpose has been overlaid by procrastination, insensitiveness Shri R. Desikan, Consumer Activist, making his observations on the achievements of CP Act through wasteful and expensive procedures. Today we need to blow that dust off the system to revive its original purpose. We have to find ways to recover from the dross in which it has become encrusted. A simple Panchayat type of legislation has been converted into a legal forest. He appealed to the awakened consumers and said that all of you have to take a positive path to restore the anticipated glory of a people s legislation to the people s court. We should strive to restore this golden legislation to the ordinary people of this country, by giving back the much touted AAM ADMI, quick 14

15 and inexpensive decision making process, which he needs urgently and looks up expectantly. There is need for all of us to take some positive actions which even involves putting forth our suggestions before the Standing Committee of the Parliament regarding fourth amendment. If implemented positively in the 12 th plan, there is no doubt that consumer protection will be able to reach out to the consumers in the farthest part of India. 4. Session Three: Consumer Rights and Services: Meeting Expectations Prof Suresh Misra, Chair Professor and Coordinator, CCS, chairing the third session on Consumer Rights and Services: Meeting Expectations The third session on Consumer Rights and Services: Meeting Expectations was chaired by Prof Suresh Misra, Chair Professor and Coordinator, Centre for Consumer Studies, Indian Institute of Public Administration. Dr. George Cheriyan, Director, CUTS who was one of the panelists for the session said that Consumer satisfaction is the key in the present market economy. By "consumer satisfaction", it means the process of realising the rights of the consumers, and ensuring right standards for goods and services for which one makes a payment. He elaborated the rights enjoyed by the consumers under the CP Act. He traced the expectations of the common man with respect to the eight consumer rights recognised universally. The right to basic needs is being recognised through a number of government schemes like NREG Scheme, National Rural Health Mission etc. Then there is National Food Security Bill which is likely to cover 63.5% of the population. When we talk about the right to safety, even after a number of laws, the safely of the common man is a serious concern. For regulation of food sector, the Food Safety and Standards Authority has been set up to regulate the sector. However, there is still need to control misleading ads and unfair trade 15

16 practices. In areas where there are safety provisions built in there is need to more action. There is need to control misleading ads which have assumed alarming proportions. Checks provided by CPA and ASCI are not sufficient. Right to choose is still far from being realised inspite of Competition Act, provisions in CPA and the regulatory mechanisms in sectors like electricity, telecom etc. For right to seek redressal three mechanisms have been provided which has wide coverage and is easily accessible but still only 46% cases at district level and 38% at the state level are disposed in stipulated period. This is a matter of great concern. Inspite of various schemes taken up by the government to materialise right to consumer education the level of awareness still is quite low. In Rajasthan 63 percent of the consumers have not heard about the CP Act. As regards Right to healthy environment, poor waste management, growing water scarcity, pollution, loss of diversity are some of the major environmental issues India faces. These require initiative from government, business and consumers. He also highlighted the problem in availing public services which indicates lack of accountability, inefficiency, ineffectiveness, lack of transparency and weak or poor delivery of services as the major concerns. Shri G. Mallikarjuna, Deputy General Manager and Secretary, RBI speaking on service delivery by banks Shri G. Mallikarjuna, Deputy General Manager and Secretary, Office of Banking Ombudsman, Reserve Bank of India, New Delhi spoke on the service delivery by banks and its regulation by RBI. He said that the first parichay of RBI is the currency note. But now people instead of currency notes are using plastic money. At one point of time credit/debit card was meant only for few elites but now everybody is using it. Banks are diversifying and have greater number of facilities available to consumers. Now on opening an account in the bank, insurance policy is also being provided with it. Consumers expectations are changing and RBI is trying to cope with these by 16

17 bringing a change in the scenario. The RBI from time to time is enacting many codes for the regulation of banks. He also provided an overview of the functioning of the Banking Ombudsman which is an additional forum for redressal of complaints besides CPA. The Banking Ombudsman Scheme was put up in 1995 and has been in existence for more than 17 years. It has undergone amendments over a period of time to give better redressal to consumer grievances. For filing a complaint before the Ombudsman no fee is required to be paid and it tries to resolve the complaint by mediation and conciliation. In Delhi office itself around 11,000 complaints are filed before the Ombudsman. However, he said that there is need for an umbrella Ombudsman covering banks, non-banking financial and housing companies as well as insurance as these all are related issues. He also emphasised on need for consumer awareness in financial matters. Professor Umashankar, Venkatesh Management Consultant, presented the organizational perspective as far as the service delivery is concerned. He said that there are areas where the providers of service fail, like the service provided is different from that flashed; coverage and information is grossly misleading and this is done deliberately. After sale Prof. Venkatesh Umashankar, Management Consultant presenting the organizational perspective of service delivery service is also a contentious area as regards service delivery is concerned. Packaging is also an area where the consumers are being misled. The communication of products as green and environment friendly is also some time grossly wrong. To meet the consumer expectations, issues of tangibility, reliability, responsiveness, assurance and apathy are some of the areas which need to be looked into by legislature and policy makers to meet the consumer expectations in service delivery. As regards the environment is concerned, from the point of consumers the issue of over consumption and over delivery from the point of service providers needs to be looked into. Development is an undeniable right for poorer 17

18 nations. But in the developed economies there is increasing realisation and evidence that ever-increasing consumption adds little to human happiness and may even impede it. More urgently, it is now clear that the ecosystems that sustain our economies are collapsing under the impact of rising consumption. Unless we can radically lower the environmental impact of economic activity and there is no evidence to suggest that we can we will have to devise a path to prosperity that does not rely on continued growth. According to 2011 sustainability report we have already consumed 60 percent of our eco-systems leaving our children to survive with rest 40 percent. Corporations, regulators as well as consumers have to understand that the irrefutable link between market relevance, consumerism and consumer rights is the principle of sustainability. We (all the stakeholders) do not have a choice but to think, strategize and act sustainably with a vision of shared and long-term holistic prosperity and commitment to fairness, in a finite world. The opportunity cost of not doing so will be severe and no regulation would then work as we have already used up most of our credit. 5. Session Four: Media and Consumer: Leading or Misleading The fourth session on Media and Consumer: Leading or Misleading was chaired by Prof. Pushpesh Pant, Professor, Jawaharlal Nehru University, New Delhi and Media Expert. Initiating the discussion Prof. V. Kesava Rao, Professor of Law, Andhra University, Visakhapatnam said that commercial information in the form of advertisements is part of freedom of information under Article 19 of the Constitution. Advertising is an important aspect of business and doing business without advertising is like winking at a girl in the dark; you know what you are doing, nobody Prof. Pushpesh Pant, Professor, Jawaharlal Nehru University, New Delhi chairing the fourth session on Media and Consumer: Leading or Misleading else does. Advertising is important for dissemination of information, public benefit 18

19 and free flow of commercial information. This free flow of information is important as consumers right to know will be denied otherwise. The information undoubtedly is leading as it makes consumer aware about the products. On the other hand we receive information which is sometimes half truth or untruthful. It is equally misleading as all sort of wrong information is passed on to consumers, which sometimes even affects the religious sentiments and ethical code of the society. He emphasised that there is need to regulate the media through legislations as Press Council of India has failed to curb these unfair practices. There are provisions in law of Contracts, Torts and Consumer Protection Act besides specific statutes which deal with control of media and advertising. The CPA no doubt has strong provisions in the form of control of unfair trade practices. A trade practices which adopts unfair Prof. V. Kesava Rao, Professor of Law, Andhra University speaking on Misleading Advertisements forums. method, unfair practice or deceptive practice can be dealt with under these provisions which also cover misleading ads. However, there is need to amend the law to bring an independent investigative agency similar to that under MRTP Act. He also emphasised that VCOs can also play an important role by taking such matters before the consumer Shri K. G. Vasuki, Special Correspondent, Pioneer talking about the role of social media in the society Shri K. G. Vasuki, Special Correspondent, Pioneer and Documentary film maker, Bangaluru, talked about the role of social media in today s society. He said social media is certainly gaining momentum as more and more people are assessing news from internet and mobile. Nowadays 19

20 crores of people are purchasing and interacting through internet and telecommunication techniques. Changes are part of our culture and this is the beginning of new culture. There is lot of potential in this media. Companies today are targeting the younger people who constitute 50 percent of our population and are technology savvy. The internet and IT techniques can on one hand be very useful in solving social problems. It is the internet through which the youngsters got connected with anti corruption movement. The internet is also being used to resolve a number of social issues and problems. The Agriculture Produce Marketing Confederation (APMC) is using the internet to furnish information to the farmers on issues relating to agriculture. Similarly Ashodaya Samithi an organization of sex workers in Mysore and Mandya districts of Karnataka which is recognized as a Global Learning Centre by WHO is interacting with sex workers across the globe through internet and face book. Through the medium they are giving all sort of medical advice relating to HIV etc. to the sex workers in Sangli and Satara Districts of Maharashtra. For the purpose of consumer protection the National Consumer Helpline and State Consumer Helplines are using the medium to give advice to the consumers on their problems. Besides this the medium is being used for e-commerce and e-transactions whether they are business to business or business to consumer. Thus the Internet has created a new economic ecosystem, the e-commerce marketplace, and it has become the virtual main street of the world, providing a quick and convenient way of exchanging goods and services both regionally and globally. E-commerce has grown into a huge industry. There is no limitation of boundary or space and the whole world has been converted into a global village. It is this aspect of internet and mobile transactions which needs to be properly regulated as the laws as applicable in the national boundaries are not sufficient to regulate the international transactions. In such a scenario the question arises what protection does the person buying through the internet has? The Press Council of India cannot control and regulate the social media. He thus emphasized that there is need for both legal and moral regulations. The self regulation is one aspect which if effective can be a good control on the social media. 20

21 Shri Subhash Kamath, Director, Advertising Standards Council of India (ASCI), Mumbai emphasising the role of ASCI said that advertising self-regulation is a prime example of business selfregulation and corporate social responsibility. 71 countries across the world have adopted self-regulation for advertising. In April 2011 China has also adopted a self governing institution on pattern of ASCI, India. He said that ASCI constitutes an independent adjudication group that receives, deliberates and decides on complaints received from consumers and competitors and compliance sought is on a voluntarily basis. The body works with advertisers, ad agencies and media members who are individually and collectively responsible for compliance. The ASCI code is not in competition with the law. Its rules are designed to complement legal controls, not to usurp or replace them. The ideas of ASCI codes are: to ensure the truthfulness and honesty of representations and claims; ensure that advertisements are not offensive to generally accepted standards of public decency; safeguard against indiscriminate use of advertising in situations or promotion of products/ services which are regarded as hazardous or harmful; and to ensure that advertisements observe fairness in competition. He said ASCI receives on an average 13 complaints per week. He explained through a number of examples the role played by ASCI in controlling the misleading ads. Shri Subhash Kamath, Director, ASCI discussing the role of ASCI in self-regulation 21

22 Session on Media and Consumer: Leading or Misleading in progress One of the participants asking question during the session 22

23 6. Session Five: Standards and Consumer Safety: Building Consumer Confidence Shri L. Mansingh, Former Secretary, DCA, GoI chairing the fifth session on Standards and Consumer Safety: Building Consumer Confidence The fifth Session on Standards and Consumer Safety: Building Consumer Confidence was chaired by Shri L. Mansingh, Former Secretary, Department of Consumer Affairs, GOI and Former Chairperson, Petroleum and Natural Gas Regulatory Board, New Delhi. He raised four issues to be debated during the session which included need for national standard policy in India, building mandatory standards and role of BIS as licensing and regulatory body. Professor Sri Ram Khanna, Professor of Commerce, Department of Commerce, University of Delhi spoke on standards and consumer confidence. He said consumer confidence is based on his experience with product or service used. Standards are one of the ingredients which if followed can generate positive consumer experience. However it is possible only if market surveillance measures are effective. He referred to a survey where it was Prof. Sri Ram Khanna, Professor of Commerce, University of Delhi, speaking on Standards and Consumer Confidence found that most of the mineral water bottled did not conform to the national standard level. Consumer confidence on the other hand gets adversely affected if standards are found to be deficient for consumer brands and they are not followed by leading brands. Even there is crisis of confidence among consumers on food standards 23

24 relating to purity, nutrition and safety. He emphasised that there is a need for the BIS to play a more proactive role in making the standard mandatory. Shri Avtar Singh, Assessor, NABCB, QCI speaking on Standards and Role of QCI Shri Avtar Singh, Assessor, National Accreditation Board for Certification Bodies, Quality Council of India, New Delhi said that safety in public life encompasses every aspect of life today. There is national as well as international responsibility of the government for regulation to protect the health and safety of the consumers. Though in India there are laws for the same but the enforcement of these is weak, therefore there is need to relook as how to administer them in a better manner. There is a worldwide shift in the manner of administering regulation. There is unbundling of the regulations and creation of alternative machinery of independent regulators through legislations. These regulators are setting standards either themselves or with the help of professional bodies like BIS. He also highlighted the role of Quality Council of India in drafting regulations and certification in collaboration with the regulators for better administration of regulations in future. Shri Rajnish Kumar Sharma, Chief Manager, Business Development, Siemens speaking on Role of Business in Building Consumer Confidence in Standards Shri Rajnish Kumar Sharma, Chief Manager, Business Development, Siemens, New Delhi highlighted the importance of building environment for safety as now there is emphasis on safety issues in all sectors whether it is road safety, metro safety etc. Building consumer confidence is a continuous process with the 24

25 advent of new technologies, new ways of adaptation and new perspectives. Consumers confidence involves addressing issues like quality, reliability, safety and competitive prices, wide choice of goods and services; transparency in production, health and environmental protection etc. Consumers rights need to be protected through transparent processes and practices and suitable laws as well as courts. Their confidence needs to be built-up with appropriate certifications. They need to be supported and encouraged to raise their voice through various consumer fora for grievance redressal. It is pathetic to note that consumer today, especially the individuals are not well aware of a product, its quality and standard. He also talked about the benefits of certification that ensures quality, permits choice, ensures safety of people and helps in quick redressal of the grievances relating to the quality of products. With proper certification process in place as defined by various national and international standards bodies; the manufacturers need to declare for the goods, performance parameters and accurate specifications, operational safe life span, markings and labeling, conformity of standards with proper certification, storage, mounting and disposal instructions and also supported by manufacturers assurance certificates appropriately. Organized manufacturers have the entire process in place with emphasis on total reliability, occupational safety and health and environment protection as a defined and declared Corporate Quality Policy. The need is to adhere to the defined corporate cultural value system declared by corporate management. Shri D. K. Nayyar, Scientist- G and Chief (Certification), BIS, New Delhi provided an overview of the functioning of Bureau of Indian Standards. He explained the whole process of standardization and the different standards developed by BIS. He also explained the importance of standards in the day to day life of a consumer and said that a world without standards Shri D. K. Nayyar, Scientist-G and Chief (Certification), BIS speaking on Role of BIS as Standards setting body 25

26 would soon grind to a halt. It is difficult to exaggerate the importance of standards in our everyday lives. Standards basically establish requirements, guidelines and characteristics for products, processes, and services. Standards are dynamic in nature and drawn through consensus among all stakeholders. Standards are followed for convenience, or are used because they are legally binding. The standards bring benefit not only for the consumers but also for business, regulators and government. In India, Bureau of Indian Standards (BIS), erstwhile ISI is the standards setting body which works under the aegis of Ministry of Consumer Affairs, Food and Public Distribution, Government of India. It is governed by Bureau of Indian Standards Act, 1986 and Rules and Regulations framed there under. BIS has been entrusted the job of formulation of National Standards under an Act of Parliament. BIS works through National Technical Committees comprising of all Stakeholders: Industries, Government Bodies, Research Organizations, End Users, Consumer Organizations and Experts. Consumers want the best products and services, for the least cost and accessible to most of the people. In this the standards can play an important role. Standards have traditionally addressed the following consumer issues; specifying performance; minimizing hazards; defining product and service information; specifying safety warnings; ensuring uniformity or compatibility; specifying composition or materials; and defining quality. In the arena of international standardization some of the emerging consumer priorities and issues which need to be addressed include public security; privacy and safety; second-hand goods; standards for services (so far tourism and financial services); further aspects of global market issue e.g. on-line purchasing; aspects of SR and the environment. 26

27 7. Session Six: Valedictory Session Prof. Sushma Yadav and Prof. Suresh Misra welcomed the guests. The Valedictory Session began with the Introductory Remarks by Dr. Rakesh Hooja, Director IIPA. He said that the consumer movement is class neutral. It affects all irrespective of the caste, creed, gender, race and religion. It is a movement where the rights of every individual consumer, rich or poor deserve appropriate protection. Thus for the movement to be effective and efficient it has to connect in general. It has to become a movement of the consumers, by the consumers and for the consumers. It is necessary that it should reach the bottom of the pyramid, the grass root level. Awareness, consciousness and responsibility are the factors which affect the success of the consumers movement. The establishment of a separate Department of Consumer Affairs in the states to look after consumer issues is sine qua non for the success of the movement. At present only few states have separate Department of Consumer Affairs. Therefore, there is a dire need to set up a separate Department of Consumer Affairs for better monitoring of consumer issues in the states. The aspect of consumer protection holds importance in the present scenario. This is something which cannot be attained overnight. It needs sustained and augmented efforts on part of each and every individual as consumer, society and nation as a whole. There are certain issues which have emerged out of the two day seminar which require Prof. Suresh Misra welcoming the guests Dr. Rakesh Hooja, Director IIPA delivering the Introductory Remarks introspection at the government level as well. It has been pointed out that there is a 27

28 regulatory deficit in many products and services which impact on the health, safety and environment of the consumers. There is need to prescribe mandatory standards for products such as electrical and electronic goods, IT and telecom equipment, industrial and fire safety equipment and toys. There is a multiplicity of regulatory/ standardization/ conformity assessment bodies and proliferation of certification and inspection bodies. Laboratory infrastructure is weak in terms of international norms and quality professionals lack the skills to guide quality improvement efforts in industry. There is apathy among businesses towards standardization in general, and lack of awareness among businesses towards standardization in general, and lack of awareness among them about the impact of standards on quality, competitiveness, and profitability. There is indifference among the consumers and absence of consumer demand for quality goods and services primarily because of lack of awareness among them regarding quality issues. There is need for regulation of media and advertising as the misleading information is being passed on to the consumers through advertising adversely affecting the right to information of the consumers. He pointed out that the participants were of the opinion that Consumer Protection Act needs to be provided more teeth and investigatory structure to deal with unfair trade practices and misleading Ads. Social media can be a good medium to solve many consumer problems as in the case of state consumer helplines. There was a general agreement that there is need for consumer education and awareness and VCOs can play an important role in this. 28

29 Dignitaries on the dais during the Valedictory Session Participants in the National Seminar 29

30 B.K. Taimni, Former Secretary, GOI and Former Member, NCDRC, delivering the Presidential Address Shri B.K. Taimni, Former Secretary, Government of India and Former Member, NCDRC, New Delhi delivered the Presidential Address on the occasion. He said that India was the first country to put into effect what was adopted in U.N. General Assembly in 1985 in the form of Guidelines on Consumer Protection. Our Consumer Protection Act remains one of the best pieces of legislation in the world. Consumer protection and consumer care go hand in hand and are sides of the same coin. The genesis of the CPA was in law of torts- which means a civil wrong wherein the breach in duty to take care is to be compensated with damages. The objective of CPA is to provide better protection of consumer rights and interests and for the same it provides for the setting up of quasi judicial bodies at three levels. The quasi judicial bodies are required to follow summary procedure and give quick justice. The Consumer Protection Act in the last 25 years has achieved a lot. Promoting good governance and empowerment are the major aspects of CPA. The law meets the long felt necessity to provide a better protection to the consumers. It attempts to remove helplessness of the consumer which he faces against powerful business. The producers have secured power to rob the rest and papers do not move from one desk to another which has left the consumer helpless, bewildered and shocked. It is this group which is harassed, unprotected and helpless which comes to the Forum for seeking help and justice. It is our duty to ensure that the consumer gets justice in time bound manner to keep his faith in the system. Therefore, while delivering justice empowerment and good governance are the key words. To protect the consumers from any kind of harassment it is necessary that they must be educated and made aware about the 30

31 Act and redressal mechanism under the Act. Citing an example he said that in one case a person owning a bicycle in Ludhiana wanted to park it in the cycle stand. He was asked to pay ` 2 instead of ` 1 and the man also ill-treated him. He filed a complaint before the District Forum and the District Forum dismissed the complaint on the ground that it was an insignificant matter. The person had a zeal and conviction towards the system, so he filed an appeal in SCDRC for a matter which appeared to be insignificant to all, though it was his right. The SCDRC stood up to the expectation and gave ` 10,000 as relief and ordered that the cycle stand should prominently indicate the rates. A revision was filed by the railways against the decision. The NCDRC decided the matter in the favour of the person. The decision must have provided a feeling of empowerment to the person who took so much pain to fight for his rights. The aspect of governance and empowerment are required to be raised to the highest level as people are lamenting for good governance. Referring to various provisions of the Act, rules and regulations he pointed out a number of lacunae in the provisions which require intervention and amendments to make the Act more effective. He said that the Resolution 19 of Consumer Protection Regulations stipulates the number of cases to be disposed of by the District Forum but there is no such stipulation for SCDRC and NCDRC. The norms for the same were set in the Conference of Presidents of the SCDRCs which needs to be brought into the Regulations. Section 13 stipulates the period of 90 or 150 days for the disposal of original complaint but there is no time limit stipulated for the disposal of First Appeal and Revision Petitions by SCDRC and NCDRC. This needs to be looked into. The Act is silent as to how to lead evidence and cross examination. As per the CAG Report the usual time of disposal is 16 months which is quite high and is leading to pendency and loss of consumer confidence. It is required that proper measures are taken to change the scenario. The provisions like service of notice through may be introduced which will reduce the time of service and in turn the time of disposal of complaint. The CAG Report further states that nearly 87 percent of the complaints are filed by consumers in urban areas. This is mainly because it is a costly affair for the rural people to approach the foras. There is need to introduce circuit benches for District Forums as has been done for State Commissions and 31

32 National Commission. For this purpose jurisdiction can also be conferred on nayalas set up under Gram Nyalaya Bills which can solve small consumer matters arising in the villages. The government is also taking other initiatives to bring openness and transparency in the system and to make the system more consumer friendly. For example Public Service Guarantee Act has been enacted by a number of states like M.P. and Bihar. The services which have been enumerated in the schedule are to be given in the specified time and if they are not given then high penalty can be imposed. Such laws if implemented in true spirit can go a long way in bringing good governance in the system. The objective of the Act was speedy and quick justice as justice delayed is justice denied. There is also need to introduce ethics and morality in the working of the District Forums. Humanity, integrity, patience, uprightness, purity of body and mind, straight forwardness are some of the qualities which increase the knowledge (Gyan) and have to be possessed by all in public services including the functioning of three tier quasi judicial bodies. Hon ble Supreme Court in May 1997 adopted a Code of Conduct for judges. We can also think of developing a similar code of conduct for the President and Members of the District Forums. The philosophy of Gita says good of all and good for all. Equality of others with oneself and desire to bring good of all is what we should try to achieve. What is good for one self is good for all and what is bad and painful for me is painful for others. This should be the guiding principle for District Forums. Whatever we do, we should think of the end user. If we try to bring these virtues, then it will not only help us in performing our duties as members of the quasi-judicial machinery but also help in other aspects of life as well. Shri Taimni said that there are two parts of the Act. One is the objective and the other implementation of the Act. The implementation of the Act is by people manning the Act. There are large number of vacancies in the forum which is making the delivery of justice difficult and delayed. When we think of welfare we have to think of welfare of the common man. He said that we may build any institution but it is not enough unless people go there with a real motivation to get justice. Lok adalat is also a good idea to give justice to people if adopted and implemented in letter and 32

33 spirit. If the District Forum can adopt the mechanism of Lok adalats and implement it properly then it can help reduce the pendency. Shri Rajiv Agarwal, Secretary, Government of India delivered the Valedictory Address on the occasion. He conveyed his thanks to all the chairpersons, panelists and participants and said that the suggestions of the seminar will be important for policy formulation. He said that the Consumer Protection Act has achieved quite a lot but still there is great anxiety as far as speedy justice delivery is concerned. Now the time has come when the judicial minds should start thinking and working like lay man forgetting CPC and Evidence Act and work on good conscience and fair play. Whereas the non judicial minds should imbibe some sense of judicialness and make themselves well versed with the provisions of CPA. Otherwise we will not be able to achieve the objective of the Act. He also emphasized that for the success of the consumer movement the participation of VCOs is most important. They are the people who are in touch with the common man and can raise his issues at appropriate forums. They should have equal opportunity to participate in the proceedings of the Forum. It is good that the Hon ble Supreme Court has rejected the argument under Advocate s Act that only advocates can appear on behalf of the client. This has opened the way for the VCOs to take up the complaint of the common man and represent his case before the Forum. Shri Rajiv Agarwal, Secretary, Government of India delivering the Valedictory Address Media no doubt has done great service to the consumer movement by taking up consumer issues. There are newspapers, magazines and also T.V. channels which are having special columns and programmes highlighting consumer problems. 33

34 Through these media initiatives a lot of consumers have got redressal of their complaints. But on the other side there are misleading ads which confuse and misinform consumers. There is need for self-regulation of the media and also to make this self-regulation more effective. It should be ensured that ads of bad taste should not appear in the print and electronic media. The last two and half decade has gone in educating the consumer; the next decade has to go for consumers in realizing their responsibility. They should not act as innocent children and must understand their responsibility towards the society, environment and the future generations. The fourth amendment has been introduced in the Parliament and is pending before the Standing Committee. There has been an advertisement from the Standing Committee inviting suggestions. There are a number of issues which you have raised. There also has been a judgment which restricts the telecom complaints. You can raise these issues before the Standing Committee and give suggestions on issues which will enable us to have a comprehensive look at the areas in CPA which require changes. The separate Department of Consumer Affairs in the states is the need of the hour. At present only Kerala and West Bengal are having separate departments while other states have only one department with food and public distribution. This makes consumer issues second in priority. There is a need to establish separate Department of Consumer Affairs in all the states so that matters like consumer issues, legal meteorology, standards, pricing can be taken care by these departments. BIS is the only authority for making standards. Today every department is trying to establish a separate standard body which is not in the interest of the consumers. Shri Agarwal concluded by saying that in the Silver Jubilee celebrations of CP Act, the National Seminar has raised a number of very important issues and its recommendations will be taken into consideration. As regards the role of Gram Nyalya in consumer protection is concerned the same can be considered as it will bring better nyay to consumers in the country. 34

35 Dr. Sapna Chadah, Assistant Professor, CCS, presenting the proceedings of the national seminar Dr. Mamta Pathania, Assistant Professor, CCS delivering the Vote of Thanks 35