Sunday, August 2, 2015

Legal Framework - Consumer Protection in India

This a published material. The citation is as follows:

Title: Consumer Protection: Problems and Prospects
Authors: Aman CHATTERJEE, Sheetal SAHOO
Publication: Postmodern Openings, 2011, Year 2, Vol. 7, September, pp: 157-182
The online version of this article can be found at: http://postmodernopenings.com

Consumer Protection Act had been deliberately omitted to give you a wider perspective. Happy Reading !

The contemporary era is marked as the era of consumers. No country can knowingly or unknowingly disregard the interest of the consumers. This can be argued on the basis of fast enactment of consumer protection laws in almost all part of the world. Apart from the consumer protection laws in developed world, we could find the accelerated rate of lawmaking for consumers in developing countries like Thailand, Sri
Lanka, Korea, Mongolia, Philippines, Mauritius, China, Taiwan, Nepal, Indonesia, Malaysia and other countries. India is not an exception to this rule. The Consumer Protection Act, 1986, is one of the examples that is to be treated as a milestone in the history of socio-economic legislation to protect the interests of the
consumers in India. The main objective of the Consumer Protection Act is to ensure the better protection of consumers. Unlike existing laws which are punitive or preventive in nature, the provisions of this Act are compensatory in nature. The Act is also intended to provide simple, speedy and inexpensive redressal to the consumers' grievances, and relief of a specific nature and award of compensation wherever appropriate to the consumer. The act has been amended in 1993 both to extend its coverage and scope and to enhance the powers of the redressal machinery.

THE CONSTITUTIONAL PERSPECTIVE
The Constitution of India in Articles 38, 39, 42, 43, 46 and 47 provides that the state shall strive to secure a social order for the promotion of welfare of the people; it shall direct its policies in such a way that operation of economic system does not result in the concentration of wealth and means of production to the common
detriment, it shall make provision for securing just and humane conditions of work and for maternity relief; it should endeavor to build an economic organization or to make suitable legislation to ensure a decent standard of life to all the workers who constitute the bulk of the consumers; it should promote educational and economic interests of schedule castes, scheduled tribes and other weaker sections and it shall
also raise the level of nutrition and standard of living and to improve public health.

Article 46 of the Indian constitution provides that state shall endeavor to protect the economic interest of the weaker section of its population and also protect them from social injustice and all forms of exploitation which means all kinds of harassments and frauds in the market place. This also includes people should be entitled to unadulterated stuff injurious to public health and safety. This principle amply reflects the inclusion of the philosophy of the concept of consumerism in article 47 of the Indian Constitution.

THE INDIAN PENAL CODE, 1860
It is the foremost penal law of the country which contains the substantive law of crime. It caters to the needs of the consumer in some manner. However, sections 264 to 267 of the Indian penal code relate to fraudulent use of false instrument for weighing, fraudulent use of false weight and measures, anyone in possession of false weight or measure respectively. The penal code further provides sections 269 to 271 on spreading of infections and in sections 272 to 276 on adulteration of food or drink, adulteration of drugs, sale of adulterated drugs and sale of drugs as a different drug or preparation are punishable with imprisonment or with both.

THE DANGEROUS DRUGS ACT, 1930
In the area of drugs control the Dangerous drugs Act, 1930 is an important central legislation which empowers the central government to control certain operations relating to dangerous drugs. It further
empowers to increase and render uniform penalties for offences relating to operations of dangerous act.

THE SALE OF GOODS ACT, 1930 Some spirit of concept of consumerism is also evident in the Sale
of Goods Act, 1930. Before this enactment the situation was uncertain with regard to “sale of goods or movables, the law on the subject was not only uniform throughout British India but was also outside the limits
of the original jurisdiction of the high court, extremely uncertain in its application.” The Sale of Goods Act contains the spirit of the concept of consumer protection in several provisions in several provisions which
include contract of sale, conditions and warranties in the sale, transfer of property between seller and buyer, duties of seller and buyers, right of unpaid sellers against the goods and suits for the breach of the contract.

THE DRUGS AND COSMETICS ACT, 1940
In order to defend the cause of consumer in the area of drugs and cosmetic industries in India, Drugs and cosmetic act of 1940 was enacted so as to regulate the airport, distribution and sale of drugs. In pursuance to the recommendations the pharmaceutical enquiry committee appointed by the Government of India, the drugs and cosmetics act, 1940 empowers the central government to control the manufacture of drugs, to appoint inspectors for inspecting manufacturing premises and taking samples of drugs, to appoint government analysts to whom samples drawn by such inspectors could be sent for analysis and to issue the state  government for carrying into any of the provisions of the Act.

THE CODE OF CRIMINAL PROCEDURE, 1973
Nevertheless, the criminal laws of the country do protect the consumer in some degree or so. In this regard section 153 of the code empowers a station- house officer of a police station without warrant to enter any place within the limits of such station for the purpose of inspecting or searching for any weights or measures or instruments for weighing, used or kept and whenever there is reason to believe that in such place weights, measures or instruments for weighing or false. 

9 comments:

Unknown said...

sir,
recently,the Indian Cabinet approved a new Consumer Protection Bill 2015 that seeks to replace a 29-year-old law and proposes to set up a regulatory authority which will have powers to recall products and initiate class suit against defaulting companies, including e-tailers. The proposed new law assumes importance as there is growing concern over safety of consumer products and services especially after the Maggi controversy. The key features of the new bill include establishment of an executive agency ‘Central Consumer Protection Authority’ (CCPA) which will protect and enforce the rights of consumers.but the fact is nearly 50% of the country’s population is blissfully unaware of their rights as consumers.many consumers are unaware of the consumer protection act and only few know about their consumer rights.
misleading advertisements, tele-marketing, multi-level marketing, direct selling and e-tailing pose new challenges to consumer protection.
many people in rural areas has no idea what are their rights as a consumer. Hence, there is a need to aware consumers about their rights to address the situation effectively.because according to me introducing number of bills is not the effective way to protect consumers from fraudulent acts, today's need is to aware each and every person about their consumer rights.

Khwaish said...

Sir,
Other than these Acts the government of India also provides us with the certification marks governed by the Bureau of Indian Standards and other governmental agencies. Currently it is under the direct control of ministry of consumer affairs , Mr. Ram Vilas Paswan. BIS provides you with ISI mark for industrial products, FPO Mark for processed food products ,Ag-mark for agricultural products, BIS Hallmark for gold jewelry,Eco-mark for creating environmental awareness and many more , these marks help us to judge the quality of the product and moreover help consumer from becoming the slave of fraudulent trading carried by some corrupt sellers. Moreover ,consumer needs protection because consumer in today's fast moving world is unorganized. Also illiteracy, ignorance,spurious goods,deceptive advertising, malpractices by business man etc leads us to a stage where consumer needs the maximum attention by the government for maximum social welfare ,to correct these errors government can conduct surveys to ensure feedback and creating awareness among the people .

Unknown said...

Respected sir,
I do appreciate that we have so many laws to govern the interest of the consumers but still what I feel in real scenario that the consumers are not content with the present economic conditions.Everyone knows that no eatables are coming without being adulterated.Its just that we have accepted to bear all this.Governent increases tax on alcohol,cigrette,etc but this only incteases their black market and ultimately the government revenue.If we see from social aspect,there had been so many acid attacks in India then why dont government just ban its sale to the common people.If thwre are so many codified laws in the country then I believe in the end of the day a consumer must not feel cheated.
I dont want to prove myself as a pessimist.I do see improvents coming up in the form of consumer forums,RTI etc.Its only we the leople who act buyers and sellers in the market can bring a change.conditions would be better when sellers will stop exploiting and buyers would stop bearing.

KAUSTUBH SINGH said...
This comment has been removed by the author.
Kaustubh singh said...

Sir
Thanq for sharing such an enlightening article.
It is really thought provoking that we have made such a market for ourselves that, the consumers (king of market) needs protection. There is no denial to the fact that even in the light of these laws, consumers are still being exploited. So the big question is "what should we do?". In my opinion, the need of the hour is a speedy machinery to adress the problems faced by consumers.

Arun B. Prasad said...

Dear Priyanka, Sonakshi, Sakshi and Kaustubh,

Thanks for sharing your thoughts, research and ideas on this important topic.

Wealth of information shared by Priyanka throws light on the amendments to CPA. Rural people and the issue of lack of knowledge is a perennial one. This is why the Government is spending crores of Rupees on social advertisements. I see the relevance of Doordarshan as a free media disseminating useful information.

Sonakshi has has made a nice intervention into setting standards. In terms of this course, she has preempted the discussion when we will be talking about perfect and imperfect competition. Rightly, she has pointed out the factors that lead toi exploitation of consumers.

Sakhi has opened the debate and given a solution too; when she says "We the People" should take steps to eliminate the bad ways of the sellers. I can see the anguish when she says that she is not a pessimist. I totally agree, the issues listed by you are pretty real. Food, medicine, abusive substances are real issues that we are facing. Well written comment.

Kaustubh has mentioned that the real kind of the market, Consumer is being taken for a ride. He invokes the need to create systems and institutions to look into the fate of consumers. I appreciate your empathy.

Keep the questions alive..
Warm Regards,
Arun

Unknown said...

Sir,
I believe that our constitution has got abundance of laws ,not only related to consumers but also to citizens, that give the people various rights for which they can demand sanction in case on any breach. But I suppose the problem is not that we don't have required laws, the problem is with the implementation of these laws. One of the main reasons behind this lack of implementation is the lack of awareness and ignorance on the part of the people, and in the present case consumers. The consumers are either not aware of the laws relating to their rights or even when they are aware they are not willing to exercise their rights, this is the result of the cumbersome judicial process that requires not only time but also money which has discouraged not only the consumers but also the people at large, e.g.- a mother finds a juice carton that she is using to give her child juice has got fungus in it, in normal course she will just throw the juice carton and get another carton as this how things are generally done. This shows ignorance on account of convenience.
So, I believe that there is a need to not only aware the consumers about their rights but also to encourage them to exercise their rights and this can be done by building their trust in the system established by state.

Unknown said...

sir,
actually we live in ageneration i.e. also called as kalyug , people here want to make profit in any way whether it may be at cost of other life . as we have studied that COST OF PRODUCTION + PROFIT OF MARGIN = PRICE OF A COMMODITY . so as like the COMPETITION ACT 2002 the government regulate the price of goods , there is need that the services {manmade} should also be regulated and the profit of margin can be maintained , so it will reduce the chance of exploitation of the consumer. secondly the consumer himself should regulate him i.e. should try not to include in any kind of illegitimate actions , otherwise whether any kind of policy may apply or anything possitive happens it won't have any effect on the consumers. thirdly the main solution could be the use of technology as now everybody is somehow related to techonology and prominently with the social networking website , so awareness could be created using social networking websites , the way through which one can approach on the breach of consumer right , it can depicted .

prafull bhardwaj said...

Mostly all laws are are punitive or preventive in nature but these consumer protection laws really facilitate the humankind.As one of my friend raised the issue of implementation as we see there is somewhere the lack of proper enforcement of these laws.We have the checks and monitoring on the big brands but what about the local factory situated in some small city producing some product without caring about the laws.Agencies do not bother about the small producers but most of the times these products led to harm to the people in a drastic manner.