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Consumerism: Emerging Challenges and Opportunities Joyeeta Gupta Why have milk prices gone up so much? In the olden days, the mothers milked the cow s, the daughters set it out in pans to separate the cream, one of the sons sold it in the maket. Today the agricultural department is mobilized, the cows' sheds are sterilized, the cows are immunized, the milk is homogenized, the supplies are motorized, the dairies are or- ganized, the milkmen are subsidized, the political leaders are energized. The result, the Indian consumer is victimized. Former Vice President M. Hidayatullah (Courtesy: Readers Digest, Nov '84) Consumer movement in our country is gaining momentum in the recent past. A number of consumer centres have come up all over the country, mostly education- oriented while some are action-based. Joyeeta Gupta describes these and draws the implications of the rising consumer awareness for the managers, for the policy-makers, and for the consumers themselves. Joyeeta Gupta is Editor, Consumer Confrontation, a journal published by the Consumer Education and Research Centre, Ahmedabad. The State of the Consumer In an environment of limited choice, inadequate supplies, incomplete information, ignorant con- sumers, and unlimited demand, it is inevitable that the Indian consumer gets cheated. Some examples of how he is affected are given below: It is estimated that the consumer loses at least Rs. 2,000 crore every year; in fact, he is paying Rs. 1,600 crore more than he should because of defective weights and measures (Sundaram, 1985). One out of every three edible items in the market is adulterated. 1 A sample study reveals that 50 per cent of veg- etables were contaminated with pesticides. 2 Fake fabrics are being manufactured on 8,00,000 powerlooms. 3 Adulterated cement is bringing down houses but not the rent. Subsidized text books are sub-standard in that they tell the Class X students that Leningrad is the capital of Russia. 4 Women were being denied the individual term insurance by the Insurance Corporation. Negligence in municipal services resulted in 23 citizens of Ahmedabad losing their lives within 24 hours of continuous rains by falling into open drains, manholes, and pits. 1. "Most of 'What You are Eating is Adulterated," Indian Express, 14.9.1983. 2. "Pesticide Residues," Financial Express. 28.2.1985. 3. Press Release Issued by the Consumer Education and Research Centre (CERC), Ahmedabad. 4. Consumer Confrontation, July 1986.

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Consumerism: Emerging Challenges and Opportunities

Joyeeta Gupta

Why have milk prices gone up so much? In the olden days, the mothers milked the cow s, the daughters set it out in pans to separate the cream, one of the sons sold it in the maket. Today the agricultural department is mobilized, the cows' sheds are sterilized, the cows are immunized, the milk is homogenized, the supplies are motorized, the dairies are or-ganized, the milkmen are subsidized, the political leaders are energized. The result, the Indian consumer is victimized. Former Vice President M. Hidayatullah (Courtesy: Readers Digest, Nov '84)

Consumer movement in our country is gaining momentum in the recent past. A number of consumer centres have come up all over the country, mostly education-oriented while some are action-based. Joyeeta Gupta describes these and draws the implications of the rising consumer awareness for the managers, for the policy-makers, and for the consumers themselves.

Joyeeta Gupta is Editor, Consumer Confrontation, a journal published by the Consumer Education and Research Centre, Ahmedabad.

The State of the Consumer

In an environment of limited choice, inadequate supplies, incomplete information, ignorant con-sumers, and unlimited demand, it is inevitable that the Indian consumer gets cheated. Some examples of how he is affected are given below: • It is estimated that the consumer loses at least

Rs. 2,000 crore every year; in fact, he is paying Rs. 1,600 crore more than he should because of defective weights and measures (Sundaram, 1985).

• One out of every three edible items in the market is adulterated. 1

• A sample study reveals that 50 per cent of veg-etables were contaminated with pesticides. 2

• Fake fabrics are being manufactured on 8,00,000 powerlooms.3

• Adulterated cement is bringing down houses but not the rent.

• Subsidized text books are sub-standard in that they tell the Class X students that Leningrad is the capital of Russia.4

• Women were being denied the individual term insurance by the Insurance Corporation.

• Negligence in municipal services resulted in 23 citizens of Ahmedabad losing their lives within 24 hours of continuous rains by falling into open drains, manholes, and pits.

1. "Most of 'What You are Eating is Adulterated," Indian Express, 14.9.1983.

2. "Pesticide Residues," Financial Express. 28.2.1985. 3. Press Release Issued by the Consumer Education and

Research Centre (CERC), Ahmedabad. 4. Consumer Confrontation, July 1986.

• There are 30,000 drug formulations in the market though only 116 are declared to be essential by the Hathi Committe.5

• The paradox of the medical profession in In dia is that while there are more than 20,000 unemployed doctors in India, there is only one doctor for every 20,000 people in the rural areas.6

These sample statistics on essential con-sumer items like food, clothing, shelter, educa-tion, insurance, medical services, and municipal services serve to emphasize the need for a regu-latory climate to protect the consumer.

But in terms of sheer numbers the 750 million consumers in India are a force to be reckoned with. They have at least 200 international bodies supporting their cause. They have around 50 laws which can be interpreted in their favour. There are about 180 consumer bodies at their beck and call. The government is officially recognizing consumerism as a force by creation of consumer agencies. Business and industry, in an effort to cope, has started self-regulating measures.

With the Bhopal tragedy came the stimulus for a sudden environmental concern and a reali-zation that safety measures and precautions are not always adopted by the industrial sector. With the Dalkon Shield disaster came the realization that not all products and services coming from the West are safe. With the international declara-tion of consumer rights came the growing aware-ness of one's rights. With international precedents of law came the knowledge of the extent of the judi-cial support the consumer movement may get.

In the evolving atmosphere of protectionism and awareness, the attitudes of professionals, policy makers, and managers will have to un-dergo a drastic change.

Implications for the Policy Maker

For the policy maker it is not enough to have a multiplicity of laws unless they are implemented. The Hire Purchase Act, 1972, is yet to come into force. Making provisions for the establishment of enforcement or safety councils is creditable, but it serves no purpose if the council is not

5. Consumer Confrontation, March 1980. 6. Quoted from a lecture delivered by I H Latif, Ex-Governor

of-Bombay.

established, or if the post of the officer incharge is vacant. The Air Traffic Safety Council, though envisaged by law, is yet to become a reality. The post of the Public Health Analyst in Ahmedabad has been vacant for the past five years.

Keeping the two rights of safety and informa-tion in focus, the policy of the government should be to ensure that scarce available resources are not diverted _to non-essential ends such as the production of tonics and syrups which account for 25 per cent of our total pharmaceutical production.7 A major restructuring of economic, fiscal, and legal steps is necessary to ensure qual-ity control, safety, and that resources are put to optimal use.

Implications for the Consumer

Dr. James Turner, a close associate of Ralph Nader and a leading consumer expert of the US (who was recently in India) would, however, transfer the responsibility of policy decisions on the con-sumer, by voting via the wallet. Quoting from Adam Smith that consumption is the sole end and purpose of all production, he says that consumers are to economics what voters are to politics.

If the government passes legislation to ban alcohol production, it will not necessarily be ef-fective if consumers demand alcohol and if pro-ducers and retailers are willing to take risks. This legislation would, in fact, be counterproductive, because spurious and sub-standard liquor will be available at high prices and this is one of the main reasons why the amendment to the American Constitution to ban liquor was dropped in 1933 (Tresoline, 1979). Dr. Turner's suggestion is that instead of banning cigarette production, one should educate consumers on the ill effects so as to make them decide for themselves that this is a product they do not want. This is based on the premise that power flows from the bottom up, that is from the people to the powers that be.

But in a market of so many products and services, the consumer is, in essence, a novice. When it comes to making an educated choice, the consumer cannot determine say, for instance, the tensile strength of a thread or a rope, or the fast-ness of dyes (Lee and Zelenak, 1982). It is here that policy decisions of the government supple-ment the economic vote of the consumer. 7. "Consumer Notes." Indian Express. 14.7.1986.

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Implications for the Manager

The consumer movement is the economic expres-sion for revolution. The seeds of the consumer movement have been sown. The time is drawing near when a major problem faced by consumers can result in a consumer revolution, seriously af-fecting the producers' fortunes. The manager must therefore sensitize himself to the new risks and opportunities as part of the concept of corpo-rate responsibility. He has to ensure that the so-cial cost is not greater than the private benefit. He has to internalize the social costs especially in terms of environmental pollution.

Though there may be a conflict between con-sumer interest and business interest in the short run, in the long run this conflict disappears. For, if a firm wishes to maximize its profits in the long run, it will have to satisfy consumers and con-tinually cater to consumer needs and demands. However, despite the fact that this principle is based on sound common sense, "probably the most important management fundamental that is being ignored is staying close to the consumer to satisfy his needs and anticipate his wants," as Lew Young (Editor-in-Chief, Business Week) says.

In a broader perspective, Dr. James Turner, in his interview with the author, reaffirmed that the point where the consumer and the producer meet is not a point of confrontation, but of contact where both consumers and producers need each other. Therefore, as consumerism grows and exer-cise of consumer rights becomes a matter of habit, there will be no conflict between consumer and business interest, even in the short run. They are both partners in the development process.

Metamorphosis in the Environment

Thus, with a change in the environment in the country, a subtle change is taking place in almost every sphere of existence and professional activ-ity. The entrepreneur will have to anticipate these changes in society and adapt accordingly. Most other professionals will have to respond to the stimulus society has to offer, but the manager will have to adapt well in advance to stay in business.

Formerly, any product could be sold, any

advertisement could be passed, and any warranty card was acceptable. After-sales service was re-garded as a favour accorded by the sellers. The novelty of new goods and new ideas had an at-traction for the consumer. But today, blind ac-ceptance is becoming a matter of the past. Con-sumers have started questioning the validity of the claims made by advertisements of even repu-ted companies. A case in point is S. Kumar's. The company was compelled to issue a corrective ad-vertisement and withdraw the earlier one.

Growth of Consumer Centres

The first consumer centre was set up in Madras by the late Shri Rajagopalachari, followed by the Consumer Guidance Society of India in Bombay. Till 1980, however, the growth of consumer centres was fairly slow, but today there are 180 centres in the country.

Gujarat accounts for 45 per cent of the con-sumer groups in the country. This implies that the managers in Gujarat have to be the first to respond to the consumer movement. Karnataka, Andhra Pradesh, and Tamil Nadu follow with 26, 23, and 19 groups respectively. The largest state of Uttar Pradesh has only three consumer agencies, while on the other hand, Andaman and Nicobar Islands have three groups all located in Port Blair.

In terms of cities, Delhi has the highest number of groups (14), followed by Ahmedabad, Hyderabad, and Bombay implying the need for greater consciousness of business in these cities.

Rural India which accounts for nearly 80 per cent of the population does not have a single con-sumer protection group. The above data were col-lected and analysed by Dr. P K Muttagi of the Tata Institute of Social Sciences who concludes that "the data suggest that the consumer movement in India is still confined to some pockets and the consumer movement is still in its infancy."

Most consumer groups subscribe to the view that consumer protection involves mainly dis-semination of information and education. But there are a handful of consumer groups like the Voluntary Organization in the Interest of Con-sumer Education (VOICE) in Delhi and the Con-sumer Education and Research Centre (CERC) in

Vol. 11, No. 2, April-June 1986 151

Ahmedabad which believe in action at the level of influencing policy decisions, raising questions in Parliament, doing active research into various subjects, and invoking the law to protect the rights of consumers. However, the activities of most groups are limited to the extent of their re-sources, financial and manpower, both in terms of number and commitment.

Most consumer groups are financially weak. Only four organizations have a budget of over Rs. one lakh a year. Nearly 55 per cent of the groups have a budget of less than Rs. 1,000 a year.

Another weakness is that one out of every five groups in the country receives grants from the state or central government. This often raises the question of objectivity in distribution of these grants. Would these grants be given if consumer groups started questioning the activities of the government? Take the case of the Machchu Dam disaster in 1979, during which 1,800 people lost their lives and property worth Rs. 103 crore was damaged. A Commission of Enquiry was es-tablished by the government on August 14, 1979, but was wound up in 1981 before its enquiry was completed. This was challenged by the CERC on the grounds that a Commission cannot be wound up arbitrarily. The High Court ruled in favour of the CERC and the life of the Commission was ex-tended. Thereafter, the Gujarat Government went to the Supreme Court and the Supreme Court up-held the winding up of the Commission without going into the legalities whether a Commission could be wound up before an enquiry is comp-leted. This history has been recalled here to give the nature of the antagonism that exists between the Gujarat Government and CERC over this issue. As a consequence, the Government of Gujarat withheld CERC's grant of Rs. 1.51 lakh for the year 1981-82. The High Court held that this was an arbitrary action and malafide, and the govern-ment was compelled to release the grant. Not all consumer groups may have the facilities to fight such manipulative measures of the government.

One of the major problems in accelerating the growth and impact of the consumer movement is the fact that often consumers themselves are not cooperative. In one case where CERC wished to lay down the principle of absolute liability in re-spect of a gas cylinder explosion, the plaintiff went in .for an out-of-court settlement of Rs. 13,000 and so the principle could not be

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established. Had it been established, the man-ufacturers and the retailers could not have es-caped liability by claiming that there was con-tributory negligence on the part of the user (mostly illiterate servants and uneducated house-wives) in an accident. Establishing absolute lia-bility would have pushed cylinder manu-facturers to design in such a way that there is very limited possibility of an accident no matter what mistakes the consumer makes while handling it.

Government Response

The government has been responding in fits and starts to the stimuli of consumer groups. While Mahatma Gandhi sought to redefine the status of the consumer/customer in his historic statement that all business exists for the satisfaction of the consumer, it was Mrs. Gandhi who gave the movement a fillip by ascribing the 17th point of her 20-Point Programme to consumer protection. But so far, the status of the consumer has been emphasized more on paper in terms of the funda-mental rights guaranteed by the Constitution of India, other laws, and policy statements.

In the last four years, however, the govern-ment seems to be thinking seriously in terms of concretizing consumer rights. The setting up of the National Consumer Council was a step in this direction. Many of the state governments have also set up agencies. Earlier this year, the Gujarat Government set up the Consumer Affairs and Pro-tection Agency of Gujarat (CAPAG). These govern-ment bodies are to help/guide disbursal of funds to consumer groups. Will such bodies ensure that all consumer groups function in tandem ?

The central government has also encouraged the growth of certain units in various depart-ments, such as the Planning Commission, the De-partment of Science and Technology, and the Textile Committee, which are conscious of con-sumer awareness. The Food and Drug Administ-ration, the Directorate of Marketing and Inspec-tion, the Dairy Development Commissionerate, and several other bodies are also instituted for the purpose of regulating activities.

Response of the Media

Most present day newspapers and journals are

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keen to have a consumer column to educate con-sumers on their rights. The media appears to have suddenly realized its tremendous potential in getting redressal for consumers, judging from the sudden spurt of complaints redressal columns in most dailies. Some newspapers have attempted to solve consumer problems by threatening adverse publicity to sellers and manufacturers in the event of non-response to complaints.

Most of the Indian newspapers and magazines are owned by business magnates and industrial powers. This raises the question whether newspapers would be biased towards their employers and their companies, and whether they would be scared to publish critical articles about organizations from which they get advertisements. This is quite obviously a possi-bility, but Professor Manubhai Shah, Managing-Trustee of the CERC, is of the opinion that so far this aspect has not been a problem to newspaper groups. He quoted as an example the fact that in one of the leading newspapers, on the very day an article criticizing Sheri Louise appeared, there was, on the same page, a quarter page advertise-ment of the company.

However, the general response to consumer-oriented articles appears to be that people know that the consumer is cheated, so what is the point in writing about it. However, updating of facts is necessary for continuous consumer education and for getting a response from the parties con-cerned. A dialogue in the papers on a particular issue is an effective way of doing so.

The history of consumer coverage the world over shows that newspapers that retain their ob-jectivity in consumer coverage appeal more to the consumer and are in great demand.

All India Radio, Ahmedabad, has evolved a novel idea of organizing lok samasya ni sansad (Parliament for people's problems), where the general public is invited to question the bureaucrats and ministers on the functioning of the concerned ministry. These question-answer sessions are, thereafter, broadcast over the radio. The Indian Television has so far had two major consumer programmes, one being Janvani, or a question-answer session with a Union Minister; and the other Rajni, where a consumer activist championed the cause with guts and glamour.

As the media is maturing, it is perfecting its

technique of reporting without running the risk of defamation. Allegations can prove extremely damaging with respect to the business of the re-levant product or service. Besides, remarks made in Parliament are exempted from defamation suits as they are privileged remarks. As such, the manufacturer/manager has to realize that in the media, he has both a trustworthy friend as well as a formidable opponent. The media might accept advertisements of unsafe products, it might even hesitate to publish anything adverse about the product for fear of losing the commission, but it will invariably report news items of national im-portance. Thus the very fact that Sheri Louise has been condemned in Parliament will get front page coverage in the papers, resulting in an unpre-cedented loss to its business. The fact that Peer-less Insurance Company has been taken to the High Court of Calcutta makes its alleged malpractices news by investing it with dramatic content. Thus, the media is a vehicle through which a company may find itself condemned even without being judged; blacklisted even be-fore it is able to defend itself. There is now an increasing demand for information. The con-sumer feels that he is entitled to receive correct information and relevant details. He is even wil-ling to crucify a company which wishes to hide behind secret formulae, and magical remedies; the new manager will have to learn to be more open with the consumer.

The Courts and the Consumer

The courts are giving growing encouragement to innovative cases. At one level, the legislature is drafting new and better consumer protection laws, and at another level, the judges are giving a broad-minded interpretation of the existing legislation.

A few years ago, only an aggrieved person could go to court and seek redressal for a wrong done to him. But after the Machchu Dam Disaster case, where the winding up of the Enquiry Com-mission was challenged as arbitrary by a consumer group not directly affected but representing the case of the consumers affected, the concept of locus standi was widened dramatically. The Supreme Court has also broadened the interpreta-tion of locus standi in the Judges Transfer case,

Vol. 11, No. 2, April-June 1986 153

where an advocate challenged the policy decision to transfer judges. The implication of this is that now anyone can go to court and fight a case where the larger interest of the community is at stake. Over the last two years, the concept of post card litigation has become popular. Under this, any-one can write a post card to the Registrar of the Supreme Court, and if he thinks that the matter is worth investigating, he can start an enquiry.

The scope of Article 21 of the Indian Con-stitution which guarantees the right to life and personal liberty has also been enlarged to cover issues relating to environmental pollution and now an individual may be able to take such a case straight away to the Supreme Court under Article 32 for violation of his fundamental rights.

Some laws like the Prevention of Food Adult-eration Act have such stringent conditions that very often the magistrate cannot reconcile them with his own conscience, and therefore lets the petty offender off, even though he knows him to be guilty.8 Enforcement of this Act is a little dif-ficult because it involves proof of adulteration from the regulatory agencies. But more often than not, these regulatory agencies are the hot-bed of corruption. For instance, the Public Health Analyst of Ahmedabad was denotified by the Gujarat Government on the advocacy of the CERC, based on an Inquiry Officer's report that he was making Rs. 3,000 everyday by falsely certifying adulterated food as pure.

Legislature and its Bills

The Indian legislature has also been fairly active in this direction. The Monopolies and Restrictive Trade Practices Act, which came into effect in 1969, dealt only with monopolistic and restric-tive trade practices; but with the amendment in August 1984, a new chapter on unfair trade was included. Now any suggestio falsi and suppressio veri will come under this Act. Besides, the po-wers of the Monopolies and Restrictive Trade Practice Commission (MRTPC) have been in-creased to include cease and desist orders, issue of injunctions, award damages, and hold Benches elsewhere in the country in addition to the exist-ing one in Delhi. 8. Conversation between Professor Manubhai Shah and a

magistrate.

The concept of an unfair trade practice is be-coming wider with the passage of time, and any group of 25 individuals can make a complaint be-fore the MRTPC. In fact, now,even a written com-plaint to the Director General (Investigation and Registration] of the MRTPC will start off a suo moto enquiry by the Commission. The entire pro-cess of taking a manufacturer to the Commission has been so simplified that the manufacturer can-not afford to feel complacent. He has to be con-stantly on his toes and must acquaint himself with the provisions of the Act. Any statement which comes under the category of false rep-resentation, misleading representation, and materially misleading statement can be deemed to be an unfair trade practice. If warranty issued to the public is not based on an adequate test of the product's performance, efficacy or length of life, it could amount to an unfair trade practice. Offering of free gifts and prizes, sale of sub-standard goods and services, and hoarding come under the purview of the Act. It is only under the provisions of this law that an apparently harm-less contest like the 'Made for Each Other Con-test' can be dragged to the Commission. The In-dian Tobacco Company Limited had organized a 'Made for Each Other Contest' for married couples, one of whom had to be a smoker.The prizes offered included an air-conditioned Pre-mier Deluxe, a Persian carpet, and a silver salver. It was alleged that as the contest was open only to smoking couples, it influenced non-smokers by luring them with the vision of attractive prizes. Besides, as the contest was designed to associate cigarette smoking with happily married couples, it created the impression that smoking was a good habit. The ruling of the Commission in this case was that the stipulation that one of the members of the participating couples should be a smoker is to be removed.

It is only under the provisions of this Act that the offer of the Nesshake with every tin of Nescafe can be challenged on the grounds that nothing is available free of cost, and, therefore, those customers who do not wish to avail of the offer of the so-called free gift, should be offered a rebate. Similarly, the issue of equity linked with de-bentures can be challenged on the grounds that the small investor is forced out of the target market, and therefore such a practice is unfair.

An amendment in June 1985 to the Weights

154 Vikalpa

and Measures (Packaged Commodities) Rule has gone a step further in that it has made it com-pulsory for manufacturers and traders to print the amount of the local taxes on the packaged com-modities, so that the the unwary consumer may not get cheated by the unscrupulous trader. This is one major step towards a system of improved labelling practices.

Besides the Union Territories, Maharashtra and Gujarat have passed the Household Electrical Appliances Order, 1981, which makes it com-pulsory for manufacturers of electrical ap-pliances to get their goods certified either by the Indian Standards Institute (ISI) or by the Directo-rate of Industries. According to the Chief Electri-cal Inspector of Gujarat, nearly 80 per cent of the electrical goods in Gujarat are sub-standard and around 70-80 accidents are reported every year as a result of handling such equipment.9 Effective implementation of this Order will make the man-ufacture and sale of electrical appliances, which are not in conformity with the standards set by the ISI, an unprofitable business.

The draft Bill on Consumer Protection, 1986, is also being currently circulated across the country for the comments of the citizens. A semi-nar on the subject was organized by the Ministry of Food and Civil Supplies earlier this year. While it provides for a forum for redressal of con-sumer complaints on defective goods, the legisla-tion has left government services, public utilities, and the service sector out of its purview.10 If com-plaints received at the CERC are an index of con-sumer problems, then over 50 per cent of them are with respect to the service sector. Several sugges-tions by various consumer and legal groups in the country have been sent to the legislature for the revision of this Bill.

Many consumer groups are demanding for drafting of further laws like a Product Liability Act, a Toxic Substances Act, etc. It is a matter of time before a network of comprehensive legisla-tions will be set up in the country to ensure the safety of the consumer.

9. "Consumer Notes," Indian Express, 22.3.1986. 10. "Bill Applicable to Consumer Complaints on Defective

Goods," The Telegraph, 20.6.1986.

Self Regulation in Business

As consumers become more aggressive about en-forcing their rights, many business houses, man-ufacturing units, and groups of professionals have got together to frame their code of ethics. The Federation of the Indian Chambers of Com-merce and Industry (FICCI) has drafted its own code of conduct. It has also established a body called the Consumers Business Forum, which meets every quarter to discuss issues of con-sumer importance relevant to the business sec-tor. A Council for Fair Business Practices was set up in 1968 to regulate the activities of the busi-ness sector. The All India Association of En-gineering Industries and the Bombay Builders Association are also following their codes of con-duct. Business organizations in Madhya Pradesh formed their owa federation, interestingly, after the state government had drafted a very exhaus-tive consumer bill. This body threatens to de-register those business organizations which in-dulge in unfair trade practices.

Similarly, the Indian Council of Advertis-ers has established an Advertising Standards Council of India with a Consumer Complaint Committee. The council consists of six mem-bers from the advertising industry and eight members from the non-business sector. The trend towards self regulation in industry and trade is a method of coping with the growing consumer movement.

International Influence

Drawing inspiration from the father of the consumer movement, Ralph Nader, taking guidance from the tools and techniques perfected by consumer groups in the west and in the east, and sharing research results of in-ternational importance, the consumer groups in India are transcending national barriers. The consumer groups of the world have es-tablished an International Organization of Consumer Union (IOCU), which acts as a cen-tral coordinating and regulating agency. The international dissemination of information has served to bring consumer representatives of the world together, united in their struggle

Vol. 11, No. 2, April-June 1986 155

against exploitation and unsafe goods. For exam-ple, when the ill effects of drugs in one country are publicized in other countries, it serves as a warning to the consumers. This led to the agita-tion in Bangladesh in the 70s for banning drugs which were not essential. When General Ershad came to power, a legislation came into effect limiting the number of drugs sold and banning certain others.

Many hazardous drugs have in the past been dumped in India. But with international informa-tion seeping into the country the Indian con-sumer will not be in the dark for long. The recent Dalkon Shield disaster, in which an unsafe intra-uterine device was gifted to India as part of US Aid campaign, has brought to surface certain im-portant issues. Indians have realized that not all international gifts are safe and useful. The re-sultant effect is the sense of scepticism towards new goods and products.

At another level, consumers are resisting the export of those goods banned in the home country to unsuspecting third world countries.

The United Nations General Assembly has re-sponded to the consumer movement and drafted Guidelines for Consumer Protection for its member countries. In May 1974, the World Health Organization adopted a resolution to frame a code in marketing practices of breast milk substitutes. The International Baby Food Action Network has been actively involved in drafting regulations to control indiscriminate baby food marketing practices.

The International Organization of Consumers Union has enlisted seven rights which are appli-cable to the consumers of the world. They include the right to safety, to information, to be heard, to redressal, to basic goods and services, to con-sumer education, and to a healthy environment.

Cooperative action in support of consumer protection has resulted in international campaigns like The Action Group to Halt Ad-vertising and Sponsorship by Tobacco (AGH-AST), Group Action against Smoking Promotion (GAASP), and the Dirty Dozen Campaign (which is a campaign to stop indiscriminate use of pesticides). These international bodies, interna-tional campaigns, and the international exchange of information have resulted in bringing the con-sumer organizations of the world together. Thus,

if business draws its ideas from the west, con-sumer organizations too will get information ab-out those products from the west.

Several exchange programmes have been or-ganized which encourage Indian lawyers to go to other countries like the USA and Canada to study certain aspects of consumer protection there, and also help in bringing lawyers from other countries to India so that they may share their expertise with us.

Consumerism : Its Tools and Techniques

Consumer groups have several tools and techni-ques at their disposal and their major aim is to create effective mass awareness.

Letters to the Editor

One of the cheapest and simplest means available is writing letters to the editors of several news-papers. These letters can generate a response from the general public, and at the same time give exposure to a much neglected consumer problem. Inadvertently, it can also give adverse publity to various manufacturers, professionals, and gov-ernment services. Once an issue engages public sympathy, it can result in a series of letters on the same subject multiplying the adverse publicity.

Press Releases

Most consumer organizations in the country wishing to publish the results of their research, legal, and educative findings, use this technique to give prompt publicity to their cases.Thus, when research revealed that nearly 50 per cent of the drinking water schemes in a sample of 50 vil-lages in Gujarat were non-functional, the infor-mation was published through press release, thus exposing the government. Similarly, when 40 samples of misleading and fraudulent stamping on textiles were collected by a consumer group, the results of the research were made known to the public through press releases. Drafting and publishing press releases can often expose one to the risk of a defamation suit. However, consumer groups are now improving their technique of drafting press releases and as such it has become

156 Vikalpa

extremely difficult to sue them. Sometimes consumer groups refer matters to

an arbitrator. In 1981, S Kumar's had introduced Polyacron Suitings through a huge advertisement claiming that the quality of their suiting was equal in performance to high quality polyester blends. The suiting was stamped as 65 per cent acrylic and polyester, and 35 per cent cellulose. However, independent laboratory tests showed that the polyester content was only 10 per cent and that in terms of wash fastness, shrinkage, and crease recovery it was inferior to polyester. The matter was much publicized and the issue was referred to the sole arbitration of Shri Arvind Narottam Lalbhai, Ex-President of the FICCI. S Kumar's then agreed to release a corrective ad-vertisement guaranteeing refund of the cost of the fabrics in case of complaints from the consumers. Another popular technique adopted by the con-sumer groups is to send representations and memoranda to the concerned officers, ministers, and members of the Parliament, to keep them up to date with the latest consumer development. This may also prompt the ministers to start de-partmental inquiries and to raise questions in the Parliament. This immediately raises a subject of importance to one local group to the level of na-tional debate.

A relatively new technique is to present a petition before the Petition Committee of the Parliament. These petitions are discussed in the Parliament and such discussions have a national impact. Sometimes questions can be raised in the Parliament on people's problems, and they would be answered by the concerned minister.

As a part of their educational effort, most consumer organizations publish a leaflet, news-letter, or magazine. Educational talks, seminars, and workshops are also organized. During these sessions, several case studies of consumer exploi-tation are discussed at length. In the last few such seminars and workshops, marketing practices of famous companies like Bata, Food Specialties, Godrej & Boyce, Kelvinator, etc., were discussed.

Litigation

Probably the most expensive and time consuming technique adopted by a handful of consumer groups is litigation. There are almost two dozen laws which can be interpreted to benefit the

consumer. These laws include the Prevention of Food Adulteration Act, 1952, the Indian Standards Act, 1952, the Essential Commodities Act, 1955, the Drugs and Cosmetics Act, 1940, the Agricultural Produce Act, 1937, the Standards of Weights and Measures Act, 1976, the Fruit Pro-ducts Order, 1955, the Household Electrical Ap-pliances Order, 1976, etc. Some are exclusively for the protection of consumers and others have sections pertinent to the consumer; for example, the Sale of Goods Act, 1930, has sections on War-ranties and Guarantees.

Consumer groups may go to the courts for the issue of injunctions and award of damages. Re-cently, the Supreme Court had issued an ad in-terim relief to the victim of the asbestos industry awarding Rs. 10,000 as damages. The court may also issue a stay in the sale of or advertising of goods and services resulting in great loss to the manufacturer. Sometimes, the courts have gone beyond contractual agreements to establish a principle in favour of consumers. An interesting example would be the case of Zinnat Bibi, the widow of an accident victim. In this case, a third party insurance had been issued by the New India Assurance and the maximum sum assured was Rs. 50,000. It was, however, argued that regard-less of the sum assured, the compensation should be awarded as per the formula laid down by the Gujarat High Court. Relying upon a Supreme Court Judgement, the Court ruled that New India Assurance should pay in accordance with the principle, even if the sum is higher than the sum assured.

Research : The Key Ingredient

Most of education, advocacy, and litigation is based on detailed research work. Research pro-vides a foundation for activist work. It is research which reveals whether the scheme of Fair Price Shops in the villages of Gujarat is being carried out as per the policy. It is through research one can identify the major causes of road accidents. With the help of research, the CERC has also been able to show through inter firm comparison that a bus fare hike was not justified as the Gujarat State Road Transport Corporation was not managing its affairs efficiently, economically, and on business principles. Research into the status of household electrical appliances has resulted in a concerted demand for compulsory certification of those

Vol. 11, No. 2, April-June 1986 157

appliances. It is research which can provoke consumers into demanding the recall of a pro-duct. Product'recall is a common solution to the sale and distribution of unsafe products in the more advanced countries. General Motors was forced to recall Corvair from the market and Firestone was compelled to recall its tyres be-cause of public outcry.

Follow-up Individual Complaints

Consumer groups pick up the ideas from indi-vidual complaints and develop the case into an issue of public interest. Here is an illustration. A well-known provision store in Ahmedabad had supplied, inadvertently, lonavala kokum unfit for human consumption. Oh a complaint re-ceived, CERC intervened. As a result, the store issued a corrective advertisment informing read-ers that if any of them had purchased the kokum between specified dates, they should return it to the shop and obtain a refund or a replacement. Issuing a corrective advertisement requires a lot of courage for it is very embarrassing and may also result in the company losing its credibility.

Currently, the consumer movement has achieved a certain momentum but several de-mands are yet to be met. Consumer groups are now fighting for increased information on labels of over-the-counter drugs and of packaged com-modities. Strangely enough, under the existing laws, the date of manufacture has been made com-pulsory even though the date of expiry is a far more important information. There are inadequate laws to demand detailed labelling of cosmetic items. Products dangerous to human health are be-ing sold without sufficient warning. CERC is agitating for a statutory warning on bidi packets and pan masala tins. Health warnings on Maggie noodles and products containing sulphates should also be given.

Conclusion

In this environment of change, development, and consumer awareness, one can feel the quickening pulse rate of an economy ready to take off. But unlike most developed countries where develop-ment preceded consumer awareness, in India, the consumer movement is likely to complement the development of the country, and by putting the

necessary brakes in society, it might well succeed in preventing some of the troubles faced by con-sumer groups elsewhere in the world.

However, it should be realized that imposing rules and regulations from above is likely to have little effect, if consumers themselves do not be-lieve in the utility of these regulations. Thus, education and awareness must accompany the process of making regulations and legislations. In fact, consumer education and dissemination of information should form part of any policy to help the consumer.

Thus, not only is labelling information on drugs and packaged commodities required, but there should also be awareness among consumers as to what these ingredients are -and what are the benefits and problems associated with them. Bus-iness houses can take a tip from here and perhaps compete with other houses in providing labelling information. This may serve as an incentive to-consumers to purchase their products. Besides, putting escape clauses in their contracts with consumers is not going to help business houses for very long. For, the trend in legal interpreta-tion appears to be to consider whether these clauses are valid. Finally, production and market-ing of unsafe products may bring in its wake a whole series of tortuous litigations.

Nor can the entrepreneurs, who have been watching the fate of the Bhopal litigation, take comfort from the fact that any such litigation will be a long drawn out process during which the real assets of the international counterparts of the company can be disposed of, for people will rise against such acts.

It is clear that business, consumers, and gov-ernment live on each other, live off each other and because of each other. Producers and the gov-ernment are merely a means to consumer satisfac-tion. Therefore, in any development process, it is important that both consumers and producers work together in the attainment of their goals. References Lee, Stewart M, and Zelenak, Mel J. Economics for Consu-

mers. Belmont: Wadsworth Publication Company, 1982. Sundaram, I S. Consumer Protection in India. Delhi : B.R.

Publishing Corporation, 1985, p.l. Tresoline, Shapiro. American Constitution Law. New

York : Macmillan, 1979.

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