Very often it is argued that the interests of consumers and producers are anti thetical. Thus if a consumer gains by some development the producers is believed to have lost. And vice versa. Thus the relationship between a consumer and a producer is regarded as a zero sum game. This is simply not correct. As argued so eloquently by Porter both would benefit by improving the quality of goods and services. Certainly there could be cases where a consumer is simply cheated by a producer or trader – but this is not a sustainable model of growth and development. Only a handful of fly by night operators would use such tactics. Serious long term players would need to invest heavily in keeping their flock of consumers happy and satisfied.

Against this background I would now go on to give the framework of any sound policy of consumer protection. Thereafter the policy framework and the XI plan programme is set out.

Consumer Entitlement and Empowerment.
Increasingly the Indian consumer is offered a variety of product and service offerings. The customer has to choose between the various options before him/her. Competition is expected to drive prices and quality to acceptable levels. However a key element of competition is information. Unless consumers have access to timely and reliable information they will not be able to make the right choices. Consumers being a largely unorganized group the Government has to step in and correct the asymmetry of information that exists in the market. Thus one of the important constituents of our policy is to enable consumers to have access to such information.

The first of the measures that we have been taking is to ensure that the consumer has access to certain basic information about the products he/she is buying. The Standards of Weights and Measures Act,1976 provides the legal framework for ensuring reliable weighment and measurement of articles sold in the market. The Legal Metrology Department at the Centre and the states is charged with this responsibility.

Only machines that are stamped for accuracy by the department can be used for measurement. In addition under the Packaged Commodities Rules framed under the Act all packaged commodities have to display certain basic information like the quantity, Maximum Retail Price, name and address of the manufacturer/importer, helpline number for complaints/assistance etc. These rules are supplemented by rules framed under other Acts like the Prevention of Food Adulteration Act, Drugs and Cosmetics Act which require additional information like ingredients, expiry or best before dates.

The second part of this aspect of our policy is to lay down standards. This is done by the Bureau of Indian Standards which is a statutory body under the BIS Act 1986. Most of the standards are voluntary but some are mandatory. Articles whose consumption can affect health and safety are considered for being made mandatory. Drinking water and electrical appliances are two such articles which cannot be manufactured without a license from BIS. These articles are then marked with the ISI mark so that consumers know that a certain safety standard has been assured.

Thus with the help of the Legal Metrology Department and the BIS consumers are guided with information about the quality, price, quantity and other crucial parameters to make informed choices. This would also help to empower the consumer to know his entitlement and take steps to ensure that his rights are protected.

Consumer Awareness
While the framework given above sets out the entitlement of the consumer it is equally important that the consumers is made aware of these rights. A constant awareness campaign is thus absolutely necessary. This is aimed at guiding the consumers on what he/she should expect and what they can do to ensure that their rights are respected.

This has to be complemented by policies that seek to encourage a healthy growth of voluntary consumer organizations. These organizations complement the efforts of the Government by providing guidance and support to the individual consumers who do not have the resources to access all the information that they should rightfully possess.

Grievance Redressal
Where a consumer does not approve the goods or services offered by a seller he/she would look at other sellers. However in many cases the consumer finds a deficiency after purchase. Or in the offering itself he/she finds a fundamental defect that violates the law. In such cases there must be a mechanism by which the consumer can get relief. The Consumer Protection Act, 1986 provides the framework for this. Under the Act there are consumer courts at the District, State and National level. The District fora have jurisdiction upto Rs 20 lakhs, the State fora have jurisdiction upto Rs one crore and beyond that cases come to the National Commission. The Act lays down the type of practices against which consumers can seek relief. These courts have played a very important role in ensuring that the rights of the consumers are protected.

XI Plan programme The XI plan has seen a quantum jump in the planned activities of the Department of Consumer Awareness.

Planned outlay has grown to Rs. 1083 crore in the Eleventh Plan from Rs 55 crore in Tenth Plan.

Revised outlay for Tenth Plan is Rs. 283.27 crore, figures for Eleventh Plan is not available.

Actual Expenditure for Tenth Plan is Rs. 257.42 crore and for Eleventh Plan is Rs. 268 crore (expected upto 31.3.2009).

Thus in the first two years of the plan itself we would have spent more than what was spent in the entire X Plan period. In the X plan itself the expenditure was far in excess of what was originally planned. Now in the remaining part of the XI Plan we would be spending, on an average, every year more than what was spent in the entire stepped up X plan period.

The major activities in the XI Plan are the following:

Consumer Entitlement and Empowerment Weights and Measures
This part of the Department has seen the sharpest increase in the level of activity. From a mere Rs 7.7 crores in the X Plan the outlay has been ramped up to Rs 187 crores in the XI Plan. In the first year of the XI Plan alone an expenditure of Rs 10.25 crores has been incurred and a further Rs 23.4 crores will be spent in 2008-09. The main thrust in this sphere is to modernize the department at the centre and the states. Corresponding investments will also be made in skill upgradation of the personnel. This also proposed to be complemented by a revision in the legal framework and a new Bill – the Legal Metrology Bill,2008 was introduced in the Rajya Sabha on October 24, 2008.

Standards and Testing
The BIS is being strengthened by a scheme for improving the system of National standardization, keeping track of International developments in the fields of standards, better training facilities etc. The total XI plan outlay is Rs 120 crores as against the X Plan outlay of Rs.5.75 crores. Changes are also contemplated in the BIS Act,1986 which has not been amended since inception. These changes are expected to bring in greater flexibility in adapting to the rapidly changing international environment.
The department also has a testing facility called the National Test House (NTH) which has its headquarters at Kolkatta and labs in different parts of the country. These labs are being modernized at a total cost of Rs 75 crores in the XI Plan – against the outlay of Rs. 25 crores in the X Plan.

Consumer Awareness and Grievance Redressal

Publicity
A major thrust is being given to inform consumers about their rights, the way to get their grievances redressed. Going beyond the activities of this department the XI Plan programme will also cover publicity about other departments like housing, telecom, education, energy etc. The main theme of this campaign is “Jago Grahak Jago” which has now become widely popular. The total outlay for this activity is Rs 409 crores as against the X plan outlay of Rs 148 crores.

Consumer Protection
Under this component the various consumer fora would be strengthened by providing buildings, computerization, training. In addition helplines would be set up in the States to guide consumers (there is at present only one National Helpline working at Delhi). The total outlay for these activities is Rs 185 crores against the X Plan outlay of Rs 90 crores. The Plan activities are also proposed to be complemented by amending the Consumer Protection Act. These amendments and plan activities are expected to cut down delays and give the consumer access to much better information.

Non Plan Activities
These plan activities would be complemented by non plan activities. The major part on this side would be the use of the Consumer Welfare Fund to support voluntary consumer organizations in activities like comparative testing, awareness generation, research and consumer assistance.

It may thus be seen that in the XI Plan period we have an ambitious programme for expanding and modernizing the institutions of this Department. This cover all facets of the policy for consumer protection – entitlement, empowerment and grievance redressal. With the march of technology it is becoming easier to network and share information. There is also greater competition in the provision of goods and consumers – both within the country and from imports. All of this augurs well for making the vision of Gandhiji a reality. (PIB Features)

*Author is Secretary, Department of Consumer Affairs

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