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CHAPTER -10
TREND OF CONSUMERISM IN INDIA

In general, consumers are scattered over our country. They are highly
disorganised. Individually, they have very weak bargaining power. They are not
professional or shrewd buyers. Besides, in India, they have an additional
handicap, namely; majority of consumers are ignorant and usually lack
information to make intelligent purchases. In many cases, they are incompetent
to protect their interests, particularly when they deal with fully organised, united
and well-informed professional sellers. Above all, apathy, indifference and
inertia of the public are the perpetual enemies and they are simply appalling.
These are serious obstacles to the sound and sustained development of
consumerism and consumer protection in India.

In India where the majority of consumer is illiterate and ill informed, and has
limited purchasing power and are not in a position to meet the basic necessities
of life. A number of non essential, traders by means of unfair practices and
deceptive methods, competition in the market is often reduced to competition in
advertising, as companies spend more and more money on exaggerated,
misleading and deceptive advertising claims, rather than improving and
functional features, making the distribution system more efficient or reducing
the price.

In our country, the basic reasons for the emergence of consumerism have been
quite different to those of western countries as listed below.
1. There was an acute dearth in essential consumer goods and the inflation in
1973-74 caused the emergence of consumer movement.
2. Indian industry did not attain advancement in technology to produce the

wide range of alternative products.

3. The Indian house wife tends to be a more discriminating and
inactive customer than her western counterpart because she has hardly
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any money or insignificant money for her wilful spending and she has no
much time to compare and decide on her purchases.
4. Indian consumers were supplied inferior quality of goods.
5. They were provided with health hazardous products causing harm to
mankind resulting in serious sickness.
6. Indian consumers were exploited by misguiding advertisements
containing false information.
7. There was artificial scarcity‘of essential goods by hoarding and black­
marketing.
8. There was a lack of efficient after sale services.
9. The improper attitude of sellers especially at rationing shops for sale of
goods at Government controlled prices also paved the way for resurgence
of commercialism in India.

The Indian consumer movement thrusts on the availability quality and pricing of
essential goods. In our country major segment of the consumer has to spend
cautiously and tries to keep balance between income and expenditure owing to
the limited income and the low standard of living. This calls for and the dire
need to protect consumer as he is the nerve centre in the economic activity.

FACTORS LEADING TO CONSUMERISM :

1. Organizational change:
The wide spread business units have widened the gap and delinked the
manufacturers and consumers. Even if communication may be there, it is not as
efficient as it should be. The direct contact is lost, and all the consumer
complaints, Suggestions and grievances are not always redressed in favour of

the consumers.

2. Technical advancement:
With the advent of highly sophisticated techniques in production, several new
varieties and alternative products are available which raised the living standards
of the people as reflected in their increased spending and diminished savings.

3. Social and political changes:

The society is changing gradually in every aspect and the awareness of the
people increases their sense of self respect. People have become more bold to
be exposed to several challenges and have realised the public accountability of
various business and non-business organizations and of Government
departments which have given rise to consumerism.

4. Individual contribution :
The existing stage of consumer awareness is the result of increased exposure
to environment in which they live and also due to contribution of the journalists,
academicians, politicians, social workers and voluntary associations involved in
the well being of the consumers.

5. Contributions of business community:

Many business units have liberally extended financial assistance to consumer
organizations in achieving the goals of the consumer as a part of the their social
responsibility towards society.

6. Government effort:
The Government took a lot of measures for developing a strong consumer
movement in India. The measures taken in this regard are :
A) 20 point programme: This programme was introduced by the Late Prime
Minister Smt. Indira Gandhi.
B) Legislative measures: There is a sound legal frame work protecting
consumer interests like the Essential Commodities Act, Monopolies and
Restrictive Trade Practices Act, The Indian Standard Institution
Certification Marks Act, The Consumer Protection Act, 1986 etc.
Moreover these laws are amended as and when required to make them
more purposeful.
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C) Support to voluntary organizations: The Government extends the

financial support and the required encouragement for the
establishment and development of consumer organizations. Owing to
the ever increasing awareness, many organizations have buckled
down working for the consumer welfare.

OBJECTIVES OF CONSUMER MOVEMENT :

The main objectives of the consumer movement in India are:
a) To restore the better balance between the buyers - seller relations in the
market place.
b) To protect and promote consumer interests.
c) To safeguard consumer rights.
d) To prevent exploitation of consumers by unscrupulous traders.
e) To present consumer interest before the Government and pressurize the
Government to provide meaningful consumer protection by legislation.
f) To organize consumer resistance against the unfair trade practices and to
create
strong public opinion in favour of false trade practices.
g) To collaborate with the Government and business
h) To undertake programmes of consumer education consumer information
and comparative testing and ensure the practices of consumer oriented
marketing programmes by business enterprise.

REASONS FOR SLOW GROWTH OF CONSUMER MOVEMENT IN INDIA :

Indian consumers are the worst victims of blatant exploitation adopted by
the ruthless businessmen through unfair means. The merciless exploitation of
the consumers and the consequent discontent led to sprout of consumer
movement. But the progress of consumer movement in India has been rather
very slow as compared with that of Western European countries and USA. Slow
growth of consumer movement may be attributed to the prevailing vicious
circles of poverty, high level illiteracy, ignorance, dearth of information flow and
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general apathy cf consumers in India.

0 Lack of general awareness in consumers :
Indian consumers, in general, lack awareness about their rights and
responsibilities. This gave greater opportunity to producers and traders to
deceive the innocent consumers.
ii) Persistence of poverty
Poverty adversely affect the consumer interests. Poverty suppresses
awareness and it makes the people coward and voiceless. It can be
noticed that only the people in advanced countries have developed a
sense of consumerism while the same was not possible in the poor
countries.
iii) Illiteracy
Illiteracy is one of the major causes of consumer exploitation. Illiteracy
make people ignorant and unaware of their own rights. Low concourse of
people against their merciless exploitation by the businessmen is
attributed to the low level of literacy particularly in rural areas.
iv) Cumbersome legal procedure
The legal procedure to fight against consumer problems in India is
cumbersome, time consuming and expensive. This makes consumers to
be more tolerant about such malpractices rather than resorting to legal
redressal concerning them. This makes the suppliers free from their social
accountability.
v) Lack of consumer interest groups
A limited number of consumers and organizations cannot bring salvation to
the innumerable consumer problems. Many more people and
organizations are headed to keep flying the flag of consumer protection to
make the consumers lobby strong.
vi) Lack of proper education and guidance
The gospel of consumer rights and responsibilities have not been brought to the
door steps of the consumers. The mass print and electronic media have not been
fully utilized to spread consumer education in India like in Western countries.
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vii) Limited Government involvement

Government, the final custodian of consumer interest, has not been taking
serious not of mounting consumer problems. It has not been fully
encouraging the voluntary organizations to protect consumer interest by
providing adequate financial support.

The consumer movement is often organized and supported by external forces

such as political parties, labour unions, by external forces such as political
parties, labour unions, women’s forums etc. The consumer movement at its
highest level is only possible through the permanent consumer associations
and organizations with adequate resources and support from the Government.

MEASURES TO FOSTER CONSUMER MOVEMENT :

The following measures will help to develop an organise and meaningful
consumer movement in the country :

1. Consumer Education :
Consumer education is a prerequisite for the success consumerism.
Consumers should be made aware of their right and responsibilities and the
utility of consumer movement Proper consumer education and motivation would
help change the stoic attitude of the hopeless consumer. Consumers should be
convinced that things could be made better if only they have the determination
for complain against anomalies and fight for justice.

There is urgent need for both formal and informal consumer education. The
formal consumer, education should form a part of the school curriculum.
Informal education can be imparted to those who are not regular students of the
educational institutions. Consumer forums, consumer co-operatives, social
service organisations, trade unions, educational institutions, students , unions,
etc., can play an important role to impart informal education to the consumers to
make them conscious of their rights and their role in protecting these rights.
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2. Consumer Guidance:
Because of the relatively unorganised and inarticulate nature of the individual
consumer, there arises the indispensable need for the consumer advocate. The
consumer advocate is an organisation that acts as a public interest group
protecting, educating, and safeguarding the rights of the consumer.

There is need to organise consumer forums throughout the country. People with
dedication and courage to take initiative is a prerequisite for the development of
consumer forums. Whatever little efforts have been made in this respect in India
are confined to urban areas.

The names of two important organisations—the Consumer Education and

Research Center (CERC), Ahmedabad, and the Consumer Guidance Society of
India (CGSI), Mumbai - which have been doing appreciable work may be
mentioned here.

The CERC, established in August 1978, aims at the education of the consumer
and the protection of consumer rights. It has urged the Government to
discontinue false and misleading advertisements, to see that the weights and
measures used by traders are, proper, to improve the quality of consumer items
by having stricter quality control measures, etc. It has been dauntlessly
attacking the misdeeds and indifference of the State monopolies like the L.I.C.,
Indian Airlines, Road Transport Corporations, Electricity Boards, etc. It has
been actively involved in dealing with consumer grievances and getting therh
redressed with the sellers.

To promote consumer consciousness, CERC uses the mass media to enlighten

consumers of the ways in which they can be tricked. It publishes two
periodicals, the Consumer Confrontation (English) and the Grahak Suraksha
(Gujarati). Besides these, there are quite a few publications brought out
frequently, on various aspects of consumerism by experts and professionals.
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The CERC also organizes workshops, seminars, lectures and class room
training sessions on consumer protection.

The CERC is funded by the Central and State Governments. It also receives
some funds from the Ford Foundation of the United States, with the approval of
the Central Government.

The Consumer Guidance Society of India, started in April 1966 in Mumbai by

nine housewives and social workers, now has thousands of members and
several branches. It is supported solely by membership subscriptions and
grants from public interest groups or charitable trusts. It does not accept
commercial donations or advertisements.

The CGSI has been successful in getting thousands of complaints redressed for
consumers who failed to get redress on their own. It tests foodstuffs for
adulteration and consumer products for safety hazards or sub-standard
performance. ISI Certification of food colours demanded by CGSI is now
mandatory.

Consumer education is one of the important tasks of the CGSI. Surveys, talks,
seminars, exhibitions and demonstrations are organised round the year on
food, drugs, weights and measures, quality marks and other subjects for
consumer education.

If such active consumer organisations come up in all parts of the country, it will
certainly give a boost to consumer protection.

3. Government Support:
Government has a great role to play in encouraging consumer movement.
Government’s role in this respect extends much beyond the provision of the proper
legal framework for consumer protection and its effective implementations.
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Government should pay due attention to consumer education, both formal and
informal. Consumer education should be made a part of the school curriculum.
Financial and other support should be provided for imparting informal education
by consumer forums and other bodies. Consumer advocates should also be
encouraged by providing financial and other support.

Government should ensure that the public sector undertakings set an example
in consumer grievance handling.

Government have taken a number of measures for consumer protection. These

include development of public distribution system and government involvement
in several industries and public utilities. However, the performance of the public
sector in several sectors is far from satisfactory.

Consumers protection movement, popularly known as ‘Consumerism” is a

recent and universal phenomenon in India. Consumerism is a social
phenomenon which in other words can be sought as social movement which
seeks to protect and augment the rights of the consumer in relation
manufacturer. While the manufacturer has the ability to design the product,
price it and sell it, the consumer at same time has the choices in the world to
accept or reject the same.

With the growth of affluence and tremendous advances science and technology
in India, consumerism has gradually emerged as a powerful force to reckon
with, when markets flooded with innumerable varieties of products like TV,
cordless telephones, computers, pagers, CD music systems, Mobile Phones,
CTVs/VCRs, video cameras, microwave ovens, frost free refrigerators, mixers
and grinders, air conditioners (split). In case of non durable item the list is
endless. These products have been flooding the market, with a matching
propaganda to push the products to consumers through various media. Rarely,
do the manufacturers bring out the possible defects or hazards inherent in
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these gadgets. The consumer in India is not organised unlike in western

countries because of persistent exploitation in the hands of traders,
manufacturers and the like. However in our country, we now find the beginning
of scattered consumer resistance movement in most of the metro cities but for
the majority of population living in rural areas the consumer resistance
movement still have a long way to go. Basically the factors that contributed to
consumer movement in India are:
a) Substandard product and service performance.
b) Frequent shortages of many products in the market.
c) Unexpected rise in price for consumer goods.
d) Deceptive Advertisement with false claims about products.
e) Area restriction on the distribution to sell products.
f) Frequent violation of warranties and guarantees by several
manufacturers including the reputed ones.
g) Environmental Pollution.
h) Rising levels at income and educational standards and increasing
awareness of the consumers and organised efforts through consumer
societies where they have a forum to voice against unfair trade practice.
i) Lack of safety regulation.
j) Food adulteration.
k) Misuse of colouring matter.
l) Short weights and measures.

The above types of malpractices and the exploitation of consumers on a large

scale will certainly indicate the pressing and urgent need for consumer
protection and consumer guidance in India .

CONSUMERISM IN INDIA - RECENT TRENDS :

There are several , dimensions under which the consumerism in India can be
analysed taking following issues into account:
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1) Environmental pollution
2) Investor protection
3) Medical practitioners
4) International Trade

1. Environmental Pollution:
With accelerated industrial development along with remarkable achievements in
the fields of science and technology, growing new cities and towns and
overcrowding of metres and urban areas, vehicles, massive deforestation,
thermal power plants etc. and introduction of chemical fertilizers pesticides and
insecticides in the farming sector, environmental pollution in urban and rural
areas besides ecological imbalances have been alarmingly on the increase. A
galaxy of organisations and pressure groups have come forward to resist the
environmental violations at different levels. Mainly they are: Human Right Non
Government Organisations (NGOs), Consumer Organisations, Intellectuals’
Associations, and many other public interest and social action groups. These
groups have had their respective share of success and failure in their
endeavours. During last few years, a new phenomenon has come to be
witnessed, that is consumer organisations world wide have begun to focus on
global environmental problem, due to the untiring efforts of International
Organisation of Consumer Unions (IOCU), now renamed as Consumers
International (Cl), a federation of consumer organisation which links activities of
180 consumer groups in 70 countries and represents the consumer interest at
various international forums. In India, Consumer Protection Act, 1986 is the
traditional rule of locus standi whereby only an aggrieved person could
approach the court for the redressal of his grievances has been considerably
liberalised in this Act and accordingly any consumer, or a consumer association
and even the central or state government can also file a complaint under this
Act. Yet another forum called Social Action Litigation (SAL), the non adversarial
form of litigation which made its headway in early 80’s to check governmental
lawlessness and repression is now being used by consumer groups primarily to
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highlight individual and societal grievances, in particular, against consumer

exploitation and environmental degradation. Nevertheless, this does not seem
to have encouraged the environmental groups to seek remedies. Moreover,
there are no separate environmental courts in India. So the environmentalists
have invoked the writ jurisdictions of High Courts and Supreme Court by way of
public interest petitions. Though the number of cases argued before the
Consumer Forum, in this field is not substantial, there is, however, a visible
spirit of optimism, in this area. There is also a clean indication that problems of
environmental law are now being equally looked after by the consumer
protagonists in India. Further it is amply clear that, the filling of environmental
cases before the Consumer Forums has primarily been possible due to the
simple and non technical procedures involved in filling a complaint under the
Consumer Protection Act, 1986. Moreover, there is legal formality of
accompanying a nominal fee while filling a complaint under the Consumer
Protection Act. In addition, a complaint does not necessarily need to approach a
District Court, High Court or the Supreme Court as is the case with
environmental protection Act. In fact the establishment of a three tier quasi
judicial mechanism under the Consumer Protection Act has facilitated the filling
of complaints, according to the amount involved, before any of the three
institutions: the District Forum, the State Commissions or the National
Commission. More over now these forums have circuit benches, which makes
them closer to the doorstep of the aggrieved persons.

These provisions have encouraged consumer organisations to approach

Consumer Forums to get their grievances redressed, even in cases where the
issues involved were primarily concerning environmental protection. Since
Consumer Protection Act applies both goods and services and to both private
and public sector, the Indian Consumer Organisations have filed a number of
complaints against public sector undertakings including railways and
telecommunication, health, electricity, airlines and banks against irresponsible
and unethical business. It may also be noted that these organisations have filed
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cases primarily against air, noise and chemical pollution. But surprisingly the
number of such cases is almost insignificant, yet they have brought home the
point that consumer organisations too can help in checking the ever growing
menace of pollution. Also there is a need for raising the environmental ethics of
business corporations. In the aftermath of the environmental catastrophes like
Bhopal, mass public are now demanding corporate responsibility in terms of
industrial accountability. The public wants business to find a workable balance
between industrial production, pollution and nature’s limits to prevent human
sufferings.

The media is expected to come to the help of the voluntary consumer groups
and environmental organisations. The role of media can be appreciated at least
from two angles. First, it is expected that media should promptly and
prominently highlight any environmental violations to inform the public about
grave consequences of such violations as well as to violators. In second place,
the media should play a constructive part in educating and making the people
aware regarding the need for environmental cleanliness.

There is also a growing need for introduction of environmental education at the

school and college level. Even the world commission on Environment and
Development had suggested that environmental education should be made a
part of formal education curriculum to teach students how to monitor, protect
and improve the environmental pollution.

2. Investor Protection :
India is one of the top expanding markets of the world according to International
Finance Corporation (IFC) with market capitalisation over U.S. $ 150 billion and
more than 440 million share holders. What is the level of protection these large
number of investors have? Is the infrastructure adequate to take care of the
explosion in the market activities?
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Redressal of investor grievances is an important role of regulatory agency. The

Securities Exchange Board of India (SEBI) has been quite active in this regard.
Most grievances relate to delay in issuing or returning share certificates after
registering the transfer. The listing agreement contains a clause to the effect
that the company will return the share certificates within 30 days of
acknowledgement. But these stipulations are often being violated by all the
companies. Apart from these issues, absence of transparency, clouded
settlement system, unfair pricing, insider trading, voluminous paper work and
lack of custodial services continue to bother falls.

Role of SEBI:
The SEBI established as an administrative body in April, 1988, became a
corporate body under the Securities and Exchange Board of India Act, 1992
which came into force on January, 1992. The SEBI Act is based on the concept
of investor protection and regulation of intermediaries. The board has framed a
number of regulations and issued various guidelines with a view to realising the
objectives of investor’s protection and regulations of intermediaries. But SEBPs
record has been uneven even while it has come to be recognised as the
principal forum for redressing investor grievances in India. Statistics revealed
that right from its inception until March, 2009 it received more than 40,38,000
individual complaints of which, 20,32,000 was resolved. This works out to a
redress rate of just over 50 per cent. Its task is really stupendous because none
of the activities of large number of capital market intermediaries - the merchant
bankers, bankers to the issue. Underwriters etc. were ever regulated in the
past. The stipulation regarding capita, adequacy and satisfactory track record
gave some of those intermediaries a status which they did not have earlier.
With more powers, the SEBI has been able to compel companies frequently to
disclose in the offer document itself the extent complaints and mechanism for
solving them. SEBI’s efforts hat thus helped to create a substantial investor
awareness regards their rights.
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Besides SEBI Act, the investors can also take action through the Company Act,
Consumer Protection Act & MRTP Act. There has been a lot of debate whether
investor can be called on consumer as defined in Consumer Protection Act. The

Morgan Stanley case has opened up some of the lacunas in Consumer

Protection Act. In the historic judgement the Supreme Court, in Morgan Staley
Mutual Fund vs. Kartick Das and others\ upholding the contentions of Morgan

Stanley Mutual Fund rules that, the application of allotment of shares cannot
constitute ‘goods’ or ‘services’. At this stage he is only prospective investor of
future goods. There is no purchase of goods for consideration nor it could
satisfy that he be called the hirer of services of the company for consideration.
The definition of consumer as given in sec. 2(1)(d)(i) of C.P. Act is only relates
to completed transaction of a sale and purchase. So the prospective investor is
not consumer and therefore consumer forums do not have jurisdiction in
redressing investors’ grievances in Share allotment matters. This judgement is
very disheartening for the consumer organisations in our country. The other
recourses of law for redressing investors grievances are no doubt there, but
they cannot provide less cost and speedy judgement as is possible in case of
consumer forums.

3. Medical Practitioners :
The increase in Private hospitals and nursing homes has converted medical care
a commodity which can be purchased. The medical profession is increasingly
being guided by profit motive rather than service to humanity. Such a situation
gives rise to unethical practices and there have been number of cases of
misdiagnosis, faculty surgeries and unnecessary testing from different parte of
the country. This kind of trend has been well documented in the case of the
Pharmaceutical industry which is known to persuade doctors to prescribe certain
types of medicines by offering commission. Some of these medicines are not
only irrational but also extremely hazardous. Drugs banned in other parts of the
world is still produced and used freely and widely (e.g. Nemasulide) in India.

1. [ (1994) II C.P.J. 7 (S.C.) ]

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It is in this regard the Supreme Court in 1995,In the much debated case, Indian
Medical Association vs. VP. Santha z, gave a land mark judgement by

extending the ambit of consumer protection Act, 1986 to cover “..... thb
activities of providing medical assistance for payment carried on by hospitals
and / or members of the medical profession.........” Now the Indian Medical
Association is seeking exemption from the Consumer Protection Act on the
following grounds:
1. It will destroy doctor-patient relationship.
2. It will result in defensive practice by doctors.
3. It will make treatment costlier.

The Indian Medical Council (IMC) has not been very dynamic in taking up this
issue. The IMC is the apex body which can take disciplinary action against the
doctor and it can strike the doctor off the rolls. But it has no judicial powers like
making the doctor to pay the compensation to the aggrieved party. There is also
a justifiable complaint that the medical council tend to play soft when one of
their friends is accused. Thus there is a feeling that very few complaints are
decided in favour of the aggrieved and he doctor goes Scot free.

The fact, the heated public controversy over the question of whether or not
medicare as a service by it in private or public sector, should be within the
purview of the consumer protection law, with the medical profession vigorously
lobbying for its specific exclusion, that primarily accounted for the
Government’s delayed action. The fact that consumer jurisprudence is still in its
nascent stage of evolution strongly objects it specifying what is highly
specialised professional conduct to the judicial scrutiny of consumer dispute
redressal forum. At the same time, it needs to be emphasised that if the doctors
had been made to realise their accountability to society and to be honest to
their professional ethics and body like IMC has not been remiss in playing its
role through prompt intervention in cases of gross professional negligence, the
claim for remedy through the consumer courts would have been less tenable.

2. [II! (1995) C.P.J. 1 (S.C.) ]

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4. International Trade
International Trade benefit the consumers all over the through various choices
of products available to consumers. Trade also affects issues such as
employment, working conditions, public health and safety and the environment,
context the global agreement like General Agreement on and Trade (GATT)
provides to the welfare of the consumer.

With GATT as tariff structures comes down and traders are exposed to global
competition, not only it will force to improve their productivity, but will compel to
pay attention to customer's needs. A number of doubts have been raised
regarding GATT namely India’s economic sovereignty will be compromised,
farmers will be ruined, drug prices will ride high, public distribution systems will
be curtailed. But none of these above fears are seem to have justified. It is true
that GATT will force a reduction in agricultural subsidies. But this will mostly
affect the western countries where the average subsidy is around 20-40 per
cent. In case of India, based on GATT rule, Indian farmers are to be given
negative subsidy because our agricultural product prices are far below the
intertionally prevailing prices in many commodities.

It is in the area of Trade Related Intellectual Property Right (TRIPR), India has
to make some legislative amendments by changing our Patent Act. Earstwhile
India is giving product patent which in reality amounts to giving no incentive to
the inventor, means prices of the drugs will not go up. In addition, since the
share of the patented drug is small, price impact need not be significant. By
developing an effective plant breeder protection, not only we can prevent any
exploitation of our genetic wealth by outsiders, but can also give enough
incentive and protection to our farmers. It is not true that our farmers have to
buy their seeds every year from the multinational or transnational companies by
which freedom to use saved seeds will be affected.

If we prepare ourselves better, then India can take advantage of GATT

agreement. There is no doubt that the developed countries have succeeded in
gaining a hard bargain. Opening in the trade in textiles which can help India will
be done only gradually and be 100 per cent free only after ten years. Whereas
the process patenting has started from 1995 itself.

The government has taken necessary steps in inviting Multinational

Corporations (MNCs) and Transnational Companies (TNCS) to invest in India
economy. We need to have an effective monitoring system for their operation
so that they can not take Indian consumers and policy makers for a ride. The
renegotiation of ENRON power project and DANG - FANG power project have
been a glaring example in this case. We should be more cautious about the
projects which affect our consumer directly for example in the sectors like
consumer goods, both durables and non durables. In the coming years there
will be definitely more changes taking place in our economy through the
operations of MNCs and TNCs.

It is often stated that Economic liberalisation and India continuing as a member

of GATT will help the consumers and in that process they will get quality goods
at reasonable price and will have plenty of choice. With economy expanding,
employment opportunities have improved and will also improve further. By
properly playing the game in international arena, Indian economy can become
vibrant and in future consumers can improve their living standards as well.

It is clear that consumerism is here to stay in India and grow into a socio
ecoconomic revolution in the future since an adequate institutional structure has
been built to support it. The negative business responses and voices are
gradually dying down. Instead, business needs to develop strong, positive
programmes that will serve as a satisfactory response to consumerism. These
programmes must generate (i) a socially desirable environment (ii) Products
that meet the expectations of the consumers through meaningful advertisement
(iii) adequate consumer information (iv) speedy withdrawal of defective products
and provision for adequate compensation package.
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CONSUMERISM IN INDIA - FUTURE DIRECTION :

Consumer Protection movement to be effective and meaningful needs the
proactive support of the government, business, organisations of Civil Society,
Educational Institutions - Schools, Colleges, Universities and Research
Institutions. Over and above the support of every individual is a sine qua non for
the Consumer movement to be purposeful. The policies, schemes and
programmes of the Government of India through the Department of
Consumer Affairs are no doubt useful but their effectiveness finally depend
on the involvement of the institutions and the people at large. A number of
schemes have already been in operation such as, Grahak Jagaran,
Consumer Clubs in Schools, Promoting involvement of Research
Institutions, Universities, Colleges, etc. in Consumer Protection and Welfare etc.
Similar schemes and programmes are needed at the State Government level
also to provide further impetus to the Consumer movement in the Country.
Organisations of the Civil Societies are having special responsibility in this
regard and so is the case of the educational institutions.

While expanding the scope of Consumer Law, National Commission opened

new doors in Bhupesh Khurana and others vs. Vishwa Budha Parishad and
other 3 that imparting education falls within the ambit of service as defined

under CPA. It was held that fees are paid for services to be rendered by way of
imparting education by educational institutions. This is a great move in the
direction of Consumer Protection as many Five stars schools & colleges are
mushrooming day by day. These claim of false affiliation with well known
Universities in India as well as abroad and charge huge sums in the name of
fees and other charges, which is unaffordable for the common man. Many of
these institutions appoint unqualified staff and faculty to teach a particular
stream and sometimes even such faculty is not available. Examinations are
not held in time or results are not declared for months or even years, or

3. [ (2000) C.T.J. 801 (S.C.) ]

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certificates are not issued to them. Most of such Institutions are being run by fly
by night operators with only commercial motives. In the last decade imparting
education has become just another business rather than service to the society.
To be cheated and lose hard earned money is one thing but more important
fact is that the future of many students is at stake.

In many such cases, which have come before the National Commission, the
apex consumer court has clearly held that providing education is a service and
has compensated the aggrieved consumer. In a number of cases the non
supply of Roll Number, unexplained delay in deciding the application for
admission, misrepresentation in advertisement and prospectus about the
recognition of the college, non refund of the initial payment as college fee etc.
have been held as deficiency in service.

Role of Educational Institutions in Consumer Protection Movement may not

legitimately be denied on any conceivable ground. Educational Institutions,
therefore, are expected to play a positive role in promoting Consumer
Protection Movement. There may be different ways to achieve the objective
of Consumer education about their rights and interest. It is said that aware
Consumer is an asset to the society. Various methodologies, Educational
Institutions are expected to follow such as, Seminars, Workshops, Lectures,
Discussions, Colloquiums, Essay Competftions, Quizzes etc. in the area of
Consumer Protection and Welfare to give boost to the Consumer Protection
Movement in the Country.

RIGHTS OF A CONSUMER :
The success of any movement depends on the consciousness and awareness
of the people for whose cause the movement is organised. We often say
consumer is the King. But in reality, we the consumers are treated very badly by
the personnel from public sector institutions like Telecom, Water Supply
Board, Electricity Boards, State Road Corporations, Post Offices, Railways,
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Banks, Revenue offices, and even Universities, and by private institutions like
shopkeepers, motor vehicle dealers, milk vendors, dry cleaners, autorikshaw
drivers, LPG dealers etc.

To overcome these problems, a consumer needs to have rights. Though

different countries give different right like social welfare measures, yet
according to the International Organisation of Consumer Unions (IOCU) now
Consumers International (Cl), the basic idea behind consumer movement is to
give the following rights to the consumer:
1. Right to basic need: Food, shelter, clothing, health care and education. But
here education has been denied by governments in the name of
reservation policy.
2. Right to Safety: Right to be protected against products, production process
and services which are hazardous to health or life.
3. Right to information: Right to get facts needed to make an informed choice
or decision. Now this right includes protection against dishonest or
misleading advertisements.
4. Right to choose: Right to have access to a variety of products and services
at competitive prices and in the case of monopoly to have an assurance of
satisfactory quality and service at a fair price.
5. Right to be heard: Right to be represented so that consumer interests
receive sympathetic consideration in the formulation and execution of
economic policy.
6. Right to redress: Right to a fair settlement of just claims. Here it involves
the right to receive compensation for misrepresentation.
7. Right to consumer education: Right to acquire knowledge and skill to
defend his rights.
8. Right to a healthy environment: This right involves protection against
environmental problems over which the individual consumer has no control.
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WHY CONSUMERISM IS NOT POWERFUL IN INDIA?

1. Docile and Fear:
It is said that a common citizen in India, is by and large, a docile person. He
takes the problems as Karma (fate) and does not complain much. This is largely
due to lack of education which has not educated them to know their rights which
our laws have given. Education should make the people to learn the art of
asserting their rights. We are more bothered about what other people think
about us rather than what we think about ourselves or what we think about a
problem facing us. A common man always afraid that if he does not succeed in
an effort who, no one else, has hitherto undertaken, he will be put to blame.
This is the reason why common people refuse to take a lead in solving a social
problem for they feel that if something went wrong, they would be held
responsible for that, and they may lose face in the society. They often say, “I
don’t want to cult a sorry figure before the people." This fear of blame many a
times prevents us even from asking a trader as to why there is a difference
between printed selling rates on an article and the actual price charged him.

2. Rationalisation :
Quite a number of times we justify our weaknesses. For example,
(1) If municipal water supply is irregular, we would say why not draw water from
the well? The well water good for health and it gives us good exercise.
(2) If a stream of dirty water from the gutter is over flowing on to the street, just
leap over it. That is a go exercise and reduces the weight.
(3) Rich society also spoils the system. Because of the connections or wealth,
they are able to meet the requirements without any trouble and they ignore
social responsibility. For example (1) if electricity fails they install generator
set. (2) If water is not available either they create overhead tank or dig bore-
wells. (3) If public transport is not available, they use car or two wheelers.
Thus the rich instead of fighting for consumerism, they spoil the system.
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3. Apathy and Consumers :

The apathy of consumers has slackened the growth consumerism. For
example, it is common to find toothpaste coming out from the wrong end of the
tube. Yet, how many consumers take the trouble of returning the tube or writing
the manufacturer? Since toothpaste costs very little, consumers fell that it is too
minor to make an issue of. Complaints regarding delayed delivery of gas
cylinder, faulty T.V. Sets, tubes, noisy refrigerators, adulterated petrol, excess
billing by water and power bodies, delay in encashment cheques and demand
drafts are a common affair. When it comes to the question of either writing a
complaint or following it up with the dealer, most consumers choose the softer
option of withdraw their hands in despair.

4. Increase in Population :
The increase in population has put a tremendous pressure on the production of
food articles and other services and public utilities. As a result, supplier of
goods does not pay much attention to the quality of goods.For example:
1. Supplying substandard electrical goods which create electric shocks.
2. Defective cooking gas cylinder—which leaks.
3. Toys with sharp edges—which may cut the finger/skin of the child who
plays with it.
4. Misleading advertisements—Tooth paste, soap powder, glucose, horlicks,
etc.
5. Defective Telephones.
4. Issuing of Licenses to wrong/unable persons.

5. Lack of Knov/ledge :
Many a time consumers just do not know the legislations that are available in
India. For example: Vegetable oil should be sold only in kgs. Selling the same in
litres is an offence. But is common that traders sell edible oil in litres.
Depending on the type of oil that is sold, the consumer may lose anywhere
between 100 to 150 grams for the price he pays per Kg of oil if the same is
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given in litres. Through some people know they are not showing any interest to

exercise their rights.

5. Quality marks and expiry dates :

Many consumers are not aware that there are things like “quality marks”, “expiry
dates” etc.. Though many may not be able to identify them, yet they do not
know that there are things like that which they should look into. Such marks on

the products meant to protect the consumers’ interest.

MARKETING AND CONSUMERISM :

The world economy has been transfigured by shortages of important materials
and products. Shortages along with inflation forces the consumer to revaluate
his concept of consumerism. Consumerism is a social movement seeking to
augment the rights and powers of buyers in relation to sellers. The marketing
concept states that the basic objective of an organisation is to satisfy customers
and society. Consumerism has had a direct impact on marketing. It follows that
the elements of the marketing process-product, price, promotion and
distribution also must be subject to the pressure of consumerism. This can be
seen in the area of product availability, product quality, product costs and
environmental concern. Consumerism demands the highest quality products
which the distributive system can offer. Therefore, the distribution network must
attempt to minimise product mishandling, poor routing, and scheduling and

delays in transit.

Today, consumerism has been defined as “the actions of individuals and

organisations (consumer, government and business) in response to
consumer’s dissatisfaction arising in exchange relationships and as the
organised effort of consumers seeking redress, restriction and remedy for
dissatisfaction they have accumulated in the acquisition of their standard of

living.
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NEW TRENDS IN CONSUMERISM IN INDIA :

ORG-MARG, the consumer research agency, launched the first-ever Rural
Consumer Panel or R-Panel to provide 'a systematically researched information
base1 in 2006. The panel monitors purchasing and consumption patterns of the
rural consumer in 20,000 households across 1,000 villages randomly selected
from 215 districts across India. It provides monthly information on brand
preferences, average household spend, buying habits like frequency of
purchase and brand loyalty, gain-loss analysis, overlap analysis and other
important indicators for over 32 FMCG categories.

The panel divided consumers into six groups in the socio-economic

classification (SEC), based on the type of house and education of the chief
wage earner. The panel found that a rural household spends on an average Rs.
270 per month on consumer durables, excluding grain. The spending limit
varies by SEC, ranging from Rs. 441 in SEC1 to Rs. 202 in the lowest SEC.

The Indian market still sees price as a critical factor in the expansion of demand
for a variety of products. The price tag actually dissuades a rural consumer or a
poor urbanite from purchasing a product. While the vast rural population is open
to experiment with new products symbolic of a changing lifestyle, affordability
continues to keep the market reined. The sachet revolution, in such
circumstances, is ideal to overcome this constraint. It has the potential of
unleashing developments in consumerism in India.

A marked reflection of this trend is the sachet revolution. Companies are

resorting to the low unit price strategy to expand sales in the growing rural
market. They have been enthused by the findings of the ORG Rural Consumer
Panel study which showed that the share of branded goods is high for a number
of daily use products. Branded goods comprise 65 per cent of sales in villages
today and the share of non-branded products is shrinking dramatically.
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Affordability remains a major constraint in turning the rural potential into

effective demand. Juxtapose this against people being lured by advertisements
for branded products. Hence, low unit price (LUP) packs offer an attractive
proposition for low income consumers to sample these products.

Over the years, the sachet strategy has proved so successful that, according to
an ORG Marg data (released on March 15, 2009), 95 per cent of total shampoo
sales in rural India are by sachets. A decade ago, Hindustan Lever Ltd (HLL)
experimented with a marketing strategy of sachets. The aim was to initiate rural
consumers to use shampoo in the place of traditional alternatives and in the
process increase sales volumes and make shampoo affordable for the masses.
These one-time-use packs proved popular with the consumers. Urban
consumers, too, have responded enthusiastically to sachet shampoos, as also
the hotel industry.

HLL is now producing ‘bubble pack' shampoos - a combination of mini packs,

which is neither a sachet nor a bottle and works on the principle of capillary
action. It is test-marketing a ‘Clinic Plus’ shampoo bubble in India, priced at
Rs. 8 and Rs. 14 against the normal sachet of Rs. 2. The logic of a shampoo
bubble is to upgrade the sachet user to the next in line higher volume in
shampoo.

In a bid to outdo HLL, Cavinkare Ltd has launched a sachet priced at 50 p for its
Chic shampoo brand in five variants. The company, that has sold a sachet at
Re. 1 since 1989, feels the price-to-value equation is not favourable for the rural
consumer. It hopes to break the price barrier in the rural market and increase
penetration from 12 per cent to 20 per cent.

Sachet packs seem to be the in-thing for other manufacturers too. Prompted by
the success of HLL, many companies are experimenting with various other
products in sachets. Marico has introduced coconut oil, a regular use product in
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the rural areas, in mini packs. The idea of beverages such as tea in small packs

is also fast catching on with HLL, Tata Tea, Duncans and Goodricke.

Interestingly, no perceptive change in tea consumption in relative terms in urban or

rural markets has been observed, but sachets are driving the rural market, says the

ORG Marg study (released on March 15, 2009). The change is in the skewed

composition where 'paise packs', as sachets are called, have grown by nearly 35

per cent between 1999 and 2008. The exemption from excise duties has also

helped the growth in sales. The sale of the main pack has, however, declined

substantially. So, big companies are now targeting the economy segment with their

brands such as Tiger, A1, Agni and Shakti. Sachets have also helped break the

resistance of some sections to high prices by offering them affordable options.

The latest to join the mini product bandwagon is HLL's Pepsodent toothpaste,

which will now (2009) be available in sachets for Rs. 5, with the target

consumers being travellers and the rural population. The sachet strategy is also

being employed in the nascent deodorant market. HLL has priced the 5 g

Rexona deo-stick at just Rs 5.50 the lowest for such a product in the world.

This strategy is also aimed at hooking the consumer with small packs and then

getting them to buy the brand. The deodorant companies feel a huge consumer
market can be opened up by this strategy.

Now even household cleaners, which have remained beyond the reach of the

common man, are likely to be targeted with this new mantra. While satellite TV

has raised the consumer's appetite for such products, their market has not
expanded as a large number of consumers remain outside the buying capacity

net. So a surface cleaning brand like Lizol (from the house of Reckitt and

Coleman) has entered the market with 10-ml sachet.

With the advent of India's economic boom in the mid-1990s, the lifestyle of the
middle class changed beyond recognition. With money to spend for the first
time in decades, the old austerity went, replaced by a culture of consumerism
and instant gratification. Scooters began to look like relics of a bygone era of
deprivation.

Bajaj was one of the casualties of the new prosperity. The once-legendary
manufacturer, one of the largest in the scooter business worldwide,
discontinued the Chetak four years ago. Of late, it has produced only a few
hundred scooters a year. Now the Chetak's successor, the Kristal, will roll off
the assembly line into the sunset in March.

The mismatch between the old-fashioned scooter and the new consumerism
can be seen in the car sales figures. Car sales in November 2009 rose by a
record 63 per cent from the November 2008 figure - the biggest surge since
2004.

The Bajaj scooter, humble and modest, mirrored the lifestyle of the middle class
during the 1970s and 1980s in the days of state socialism marked by shortages
of everything.

For the middle class, living such frugal lives that even buying a fridge
occasioned family summits where the decision was discussed with the
solemnity of a UN Security Council debate, buying a scooter was the realisation
of a fantasy.

it meant mobility. It made shopping, getting to work, dropping children off at

school and visiting relatives possible. Moreover, its price was, with some
tightening of belts, just touching roof within their reach.
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In the heyday of the Chetak, once the highest-selling scooter in the world,
Indians had to wait years for the popular model. People were prepared to pay a
premium equal to the original cost to get a Chetak.

But, in a watershed decision that symbolises how much economic prosperity

has changed India, Bajaj is to stop manufacturing scooters from March, 2009.
Demand has collapsed, as people shun the scooter, preferring sleeker, more
muscular and more expensive motorbikes or cars.

A wave of melancholic nostalgia swept across the country at the decision, with
newspaper editorials lamenting the "passing not only of an era but of a
consciousness"

WHEN WESTERN COUNTRIES ACHIEVED PROGRESS, WHY

INDIA HAS NOT PROGRESSED?
The following are the probable reasons:
(a) Lack of awareness about the existence of consumer laws and rights.
(b) Majority of the laws enacted, remained on paper.

Today, consumer education should get top priority, and probably it should be
treated on par with adult education or on Family Planning Education at the
national level. Here educational institutions, government departments and the
mass media should play a great role. It is only the Bharathidasan University in
Tamil Nadu is offering the “Basics of Consumerism” as an optional subject at
the undergraduate level. But this stray case cannot assure total awareness
unless followed by other universities in the country.

A vigorous consumer education should be organized to create what could be

termed as consumerism. Top priority should be given to consumer education
through schools and colleges. The consumer should be educated not only to tell
how they are being exploited but also the need to unite themselves into strong
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groups to resist e>ploitation.

The consumers are also to be educated on the quality mark, packing, proper
labelling and graded products. In order to keep the prices under control, the
Government should take effective action against the blackmarketers, hoarders
and speculators. The Government should stipulate norms such as quality,
quantity and price etc. and should insist on the business community to follow
honesty, to safeguard the consumers’ welfare. To remove the hazardous
products which are harmful to mankind, the Government should take preventive
steps to keep away the hazardous products from the market. The
manufacturers who are preparing hazardous products should be severely
punished through cancellation of their license imposing penalty and punishment
in the court of law. The legislative measures meant for consumer protection
should be simple and easy to be understood by the layman. Then only the
consumers and traders will know their rights and privileges. The press,
television, radio etc. should devote some time for the benefit of the consumers.

Four pronged strategies should be adopted to ensure better consumer

protection:
1) Self-help on the part of consumers,
2) effective working of consumer organizations as watch dogs of consumer
interest
3) Self-discipline on the part of the businessmen, resort to fair trade practices
and
4) The Government intervention to take legislative and administrative
measures more effectively.

What is essential for the success of consumerism in India is the awareness of

consumers of India. Every consumer must habituate himself to check properly
and if he finds any malpractices, he must immediately report to the authorities
concerned. Then only the consumer movement will be successful. The
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consumers should be highly conscious of their rights and asserts them in case
of any cheating or exploitation by traders. Consumer service / guidance centres
should be set up by all the business and Government departments to maintain
a close liaison with consumers with a view to create an organizational image of
them and to win their confidence. More and more consumer organizations must
be formed at taluk or sub division, district, state and national levels and they
should be run more effectively. The Indian Consumer Movement lacked a
carefully planned programme of action. Hence, there is an urgent need for a
proper coordination between all consumer organizations. This will, no doubt,
facilitate an organized and united action by all organizations simultaneously to
help to achieve to the objectives faster.