Consumer Rights

1. Who is a consumer? Why this chapter matters

In the market we play two roles. As producers we work in agriculture, industry or services and create goods. As consumers we purchase and use the final goods and services we need — food, clothes, a phone, a bus ride, medical treatment. Every one of us, every single day, is a consumer.

Earlier chapters discussed rules to protect workers in the unorganised sector and to protect people from high interest rates charged by moneylenders. In the same way, rules and regulations are required to protect consumers in the marketplace. This chapter looks at how consumers get exploited, how a movement grew to protect them, what rights they have, and how legal institutions help them get justice.

2. The consumer in the marketplace

Individual consumers usually find themselves in a weak position. Whenever there is a complaint about a good or service, the seller tries to shift all responsibility on to the buyer — the typical attitude being “If you didn’t like what you bought, please go elsewhere”, as if the seller has no responsibility once a sale is completed.

Exploitation in the marketplace happens in many ways:

Markets do not work fairly when producers are few and powerful while consumers buy in small amounts and are scattered. Big companies with huge wealth, power and reach can manipulate the market. Two famous examples in the book: a company sold powder milk for babies for years claiming it was better than mother’s milk, and only after a long struggle was it forced to accept the claim was false; and a long court battle was needed to make cigarette companies accept their product could cause cancer.

3. The consumer movement — how it grew

The consumer movement arose out of the dissatisfaction of consumers, as many unfair practices were being carried out by sellers and there was no legal system to protect buyers. For a long time it was simply assumed that it was the consumer’s own responsibility to be careful while buying (the idea of “caveat emptor” — let the buyer beware). An unhappy consumer could do little except stop buying that brand or from that shop.

In India, the consumer movement as a ‘social force’ began with the necessity of protecting consumers from unethical and unfair trade practices. Rampant food shortages, hoarding, black-marketing and adulteration of food and edible oil in the 1960s gave birth to the movement in an organised form.

• Till the 1970s: consumer organisations were largely busy writing articles and holding exhibitions.
• They formed consumer groups to look into malpractices in ration shops and overcrowding in road passenger transport.
• More recently: there has been a big upsurge in the number of consumer groups in India.

These efforts brought pressure on business firms and the government to correct unfair conduct. The major step came in 1986, when the Indian government enacted the Consumer Protection Act, 1986 — popularly known as COPRA (later amended in 2019).

4. Consumer Rights — overview

When consumers are organised and aware, they can demand fair treatment. COPRA recognises the following six consumer rights in India. Remember them with the cases the textbook attaches to each.

5. Right to Safety

While using goods and services, consumers have the right to be protected against the marketing of goods and the delivery of services that are hazardous to life and property. Producers must strictly follow safety rules. A defective safety valve in a pressure cooker, a faulty LPG cylinder, or unsafe medicines can cause serious accidents, so quality must be maintained by the makers and supervised by the government.

6. Right to be Informed (and the RTI Act)

Consumers have the right to be informed about the particulars of goods and services. That is why the law makes manufacturers display details on packing: ingredients, price, batch number, date of manufacture, expiry date and the manufacturer’s address. On medicines we find ‘directions for proper use’ and information about side effects; on garments, ‘instructions for washing’.

With this information, a consumer can complain and seek compensation or replacement if a product is defective within the expiry period. Selling expired medicines or charging more than the MRP (Maximum Retail Price) printed on the pack are violations — and consumers can even bargain to buy below the MRP.

The right to information was expanded by the Right to Information (RTI) Act, enacted in October 2005, which ensures citizens all the information about the functions of government departments.

7. Right to Choose

Any consumer who receives a service — regardless of age, gender and nature of service — has the right to choose whether to continue receiving it. Sellers cannot force tied or conditional selling: e.g. a shopkeeper insisting you buy toothpaste only if you also buy a toothbrush, or a gas dealer insisting you buy the stove from him when you take a new connection. Such practices deny the consumer’s right to choose.

8. Right to Seek Redressal

Consumers have the right to seek redressal against unfair trade practices and exploitation. If any damage is done to a consumer, he/she has the right to get compensation depending on the degree of damage. There must be an easy and effective public system to do this — which COPRA provides through the Consumer Commissions (consumer courts).

9. Right to Represent — the three-tier consumer courts

Under COPRA, a three-tier quasi-judicial machinery at district, state and national levels was set up for redressal of consumer disputes. This gives consumers the right to represent in the Consumer Disputes Redressal Commissions. (Note: the original 1986 limits were lower; the chapter gives the updated 2019 figures below.)

If a case is dismissed at the district level, the consumer can appeal in the state and then in the national commission. Voluntary consumer forums / consumer protection councils guide consumers on filing cases and often represent them; they also receive financial support from the government for spreading awareness. Residents’ Welfare Associations too take up unfair-practice cases on behalf of members.

10. Right to Consumer Education & the quality logos (ISI, AGMARK, Hallmark)

When consumers become conscious of their rights, they can make informed choices — this is the right to consumer education. Government campaigns like “Jago Grahak Jago” (posters, TV ads) and separate Departments of Consumer Affairs in central and state governments spread this awareness.

To judge quality before buying, look for certification logos. The organisations that issue these certificates develop quality standards and allow producers to use their logos only if they follow those standards. Certification is usually voluntary, but for products affecting health and safety or of mass consumption — LPG cylinders, food colours and additives, cement, packaged drinking water — it is mandatory.

11. Taking the consumer movement forward

India observes 24 December as National Consumers’ Day, because Parliament enacted COPRA on this day in 1986. India is one of the few countries with exclusive courts (commissions) for consumer redressal.

• Progress: there are today more than 2000 consumer groups in India, of which only about 50–60 are well-organised and recognised.
• Problems: the redressal process is becoming cumbersome, expensive and time-consuming. Consumers often must hire lawyers; most purchases give no cash memo, so evidence is hard to gather; and most purchases are small retail sales.
• COPRA 2019 amendment: buying through the internet (e-commerce) is now covered; for any service deficiency or defective product the service provider or manufacturer is held responsible and can be penalised or even imprisoned; and settlement through a neutral mediator outside the Commission is now allowed.
• After 30+ years of COPRA, consumer awareness is spreading but slowly, and enforcement of laws protecting workers and regulating markets is still weak.

The lesson: consumer movements can be effective only with consumers’ own active involvement — a voluntary effort and struggle involving the participation of one and all.

12. NCERT Exercises — fully answered

Q1. Why are rules and regulations required in the marketplace? Illustrate with examples.

Individual consumers are weak and scattered while sellers/producers are organised and powerful, so sellers exploit buyers. Rules are needed to prevent this. Examples: shopkeepers underweigh goods, add hidden charges, sell adulterated or defective goods or expired medicines, charge above MRP, or pass false information through ads (e.g. baby powder-milk claimed better than mother’s milk; cigarette firms hiding cancer risk). Rules protect consumers from such unfair practices.

Q2. What factors gave birth to the consumer movement in India? Trace its evolution.

It arose from consumer dissatisfaction with unfair trade practices and the absence of any legal protection. In the 1960s, rampant food shortages, hoarding, black-marketing and adulteration of food and edible oil gave it an organised form. Till the 1970s consumer organisations mainly wrote articles and held exhibitions, looking into ration-shop malpractices and overcrowded transport. The movement pressured business and government, leading to COPRA in 1986 (amended 2019); more recently there has been a big rise in the number of consumer groups.

Q3. Explain the need for consumer consciousness by giving two examples.

(i) An aware consumer checks the MRP, expiry date and ISI/AGMARK logos, so cannot be cheated by overpricing or sub-standard goods. (ii) An aware consumer knows about the right to seek redressal and files a case in a Consumer Commission for a defective product or deficient service (like Reji or Prakash), getting compensation instead of suffering silently.

Q4. Mention a few factors which cause exploitation of consumers.

Limited information with consumers; limited supplies (scarcity leads to hoarding); limited competition (few, powerful sellers can manipulate); low literacy and lack of awareness of rights; and unfair practices like adulteration, underweighing, false advertising and overcharging.

Q5. What is the rationale behind the enactment of the Consumer Protection Act 1986?

Consumers were being widely exploited with no legal remedy. COPRA was enacted to protect and promote consumer interests, to set up a three-tier redressal machinery (District, State, National Commissions), and to give consumers enforceable rights (safety, information, choice, redressal, representation, education) so they can get justice and fair treatment.

Q6. Describe some of your duties as consumers if you visit a shopping complex.

Buy standardised goods with ISI/AGMARK/Hallmark; check MRP, weight, manufacturing and expiry dates and ingredients; insist on a cash memo / bill; do not be misled by attractive advertisements; check the actual quantity against what is billed; and complain to the seller or a consumer forum if cheated.

Q7. Suppose you buy a bottle of honey and a biscuit packet. Which logo or mark will you look for and why?

For honey (an agricultural product) look for the AGMARK logo; for the biscuit packet (a processed food) look for the FSSAI mark / quality certification. These marks assure that the products meet prescribed quality and safety standards.

Q8. What legal measures were taken by the government to empower consumers in India?

Enactment of COPRA 1986 (amended 2019) giving the six consumer rights and a three-tier Consumer Commission system; the Right to Information (RTI) Act, 2005; setting up Departments of Consumer Affairs and consumer protection councils; and mandatory standardisation (BIS/ISI, AGMARK, Hallmark) for safety-related goods.

Q9. Mention some of the rights of consumers and write a few sentences on each.

• Right to Safety: protection against goods/services hazardous to life and property.
• Right to be Informed: right to know ingredients, price, expiry, etc.; expanded by the RTI Act.
• Right to Choose: freedom to choose; no forced or tied selling.
• Right to Seek Redressal: right to compensation against exploitation and unfair trade.
• Right to Represent: right to file/represent a complaint in Consumer Commissions.
• Right to Consumer Education: right to acquire knowledge to be a well-informed consumer.

Q10. By what means can consumers express their solidarity?

By forming consumer groups / forums and cooperatives, holding exhibitions and awareness campaigns, boycotting unfair sellers, filing class action suits jointly, and participating in events like National Consumers’ Day to collectively demand their rights.

Q11. Critically examine the progress of consumer movement in India.

Achievements: COPRA and the RTI Act; a three-tier commission system; over 2000 consumer groups; rising awareness; the 2019 amendment covering e-commerce and adding mediation. Shortcomings: redressal is cumbersome, costly and slow; lawyers are often needed; cash memos are rarely issued so evidence is weak; only 50–60 groups are well-organised; awareness spreads slowly; and rules protecting workers and markets are poorly enforced.

Q12. Match the following.

• (i) Availing details of ingredients of a product → (e) Right to information
• (ii) Agmark → (c) Certification of edible oil and cereals
• (iii) Accident due to a faulty engine in a scooter → (a) Right to safety
• (iv) District Consumer Commission → (b) Dealing with consumer cases
• (v) Food fortification → (g) Addition of key nutrients to staple foods
• (vi) Consumers International → (f) Global level institution of consumer welfare organisations
• (vii) Bureau of Indian Standards → (d) Agency that develops standards for goods and services

13. “Let’s work these out” — categorising cases

The textbook’s in-chapter activity asks you to mark the correct right for each case (Exercise on p.85):

• (a) Lata got an electric shock from a newly purchased iron and complained → Right to safety.
• (b) John, dissatisfied with telecom service, files a District Commission case → Right to seek redressal / right to represent.
• (c) A friend was sold a medicine past its expiry date → Right to safety / right to be informed.
• (d) Iqbal scans all the particulars on every pack he buys → Right to information.
• (e) Unhappy with the cable operator but unable to switch → Right to choose (denied).
• (f) Defective camera; complaining to the head office persistently → Right to seek redressal.

14. Common confusions cleared

• Consumer Protection Council vs Consumer Disputes Redressal Commission: a council/forum is a voluntary organisation that creates awareness and guides/represents consumers; a Commission is the quasi-judicial court that hears cases and gives verdicts.
• ISI vs AGMARK vs Hallmark: ISI → industrial/electrical goods; AGMARK → agricultural products; Hallmark → gold/silver jewellery. (FSSAI → packaged/processed food.)
• COPRA 1986 vs amended 2019: 1986 created the rights and three-tier system; 2019 added e-commerce, manufacturer/service-provider liability, mediation and higher pecuniary limits.
• Right to choose vs right to seek redressal: choose = freedom to select/refuse a product/service; redressal = right to compensation after being cheated.
• National Consumers’ Day (24 Dec, India) vs World Consumer Rights Day (15 March) — the chapter highlights 24 December for India.

15. Quick revision checklist

• Consumer = one who buys goods/services for final use; weak vs powerful sellers → rules needed.
• Movement grew from 1960s food shortages, hoarding, black-marketing, adulteration.
• COPRA 1986 (amended 2019); RTI Act 2005; Consumers International (1985 UN guidelines).
• Six rights: Safety, Information, Choose, Redressal, Represent, Education.
• Cases: Reji (safety), Amritha (RTI/information), Abirami (choose), Prakash (redressal).
• Three tiers: District (≤ Rs 1 cr), State (Rs 1–10 cr), National (> Rs 10 cr).
• Logos: ISI (BIS, industrial), AGMARK (agricultural), Hallmark (jewellery), +F (fortified).
• 24 December = National Consumers’ Day; “Jago Grahak Jago” campaign.