Consumer Awareness And The Institutional Framework For Consumer Protection In India
Author: LawSphereX
Category: Consumer Law
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CONSUMER AWARENESS AND THE INSTITUTIONAL
FRAMEWORK FOR CONSUMER PROTECTION IN INDIA Aayusman Tiwari, School of Law, Christ (deemed to be) University Saurav Dwivedi, School of Law, Christ (deemed to be) University
ABSTRACT
The present paper is an analysis of Consumer Awareness among undergraduate students in India. It provides a brief review of consumer laws, the wide range of harmful practices in the market milieu, and remedial measures. It argues for a strong and organised consumer movement to create a healthy environment to safeguard the interests of the consumers. The purpose of this study is to assess awareness among consumers. The maxim, ‘Caveat emptor’ (let the buyer beware) holds importance in the Indian scenario. The research methodology adopted in this paper includes both doctrinal and non-doctrinal approaches. Enforcement bottlenecks and procedural delays often impede timely justice delivery. Additionally, the digital realm presents novel issues demanding innovative solutions. Bridging the awareness gap through consumer education campaigns becomes important.
Based on the findings, the awareness initiatives in force are not full proof for consumer protection. Furthermore, a survey conducted amongst non-law students pursuing an undergraduate degree indicates a lack of awareness of consumer rights or redressal mechanisms. The paper shows the lack of consumer awareness and highlights the urgency of ‘consumerism’ movements for the protection of consumer rights. Keywords: Awareness Programmes, Educational Initiatives, Institutional Framework, Online Transactions, Safeguards
1. Introduction
The institutional framework for consumer protection in India is characterised by various redressal forums and bodies that aim to resolve legal disputes pertaining to the violation of consumer rights. India has deep historical roots in a system of trade and commerce dating back to the Indus Valley Civilisation. 1 A significant intervention, in lieu of trade and commerce in India, was by the British in the 1600s and their consequent rule of 200 years. The British created a massive impact on the methods of trade in India and highlighted the need for a comprehensive legal framework for regulating trade practices and protecting consumer rights. This was adopted in independent India through various legislations such as the Essential Commodities Act of 1955, the Standard of Weights and Measures Act of 1976, etc.
This paper focuses on the regulatory bodies and redressal forums established for consumer protection. The Consumer Protection Act, 2019 (CPA 2019) is the guiding act with respect to consumer rights and redressal councils. It mandates the setting up of consumer protection councils at the Central, state, and district level with the aim of spreading consumer awareness. This study aims to analyse the growing need of consumer awareness in India. It highlights the need and importance of the CPA 2019, and the loopholes in the existing legislations before its commencement, for example, the Consumer Protection Act, 1986 (CPA 1986). The research also examines the government and non-government educational initiatives in place for promoting awareness among consumers about consumer rights, redressal mechanisms etc.
1.1 International framework
The United Nations Guidelines for Consumer Protection (UNGCP) are a set of principles which outline the main characteristics for consumer protection legislation, enforcements of redressal systems and institutions and also for assisting interested member states in formulating policies, rules and regulation which are suitable for their economic and social environment. It also sets out to promote international enforcement cooperation among the member states and encourage sharing experiences in consumer protection. The guidelines were first adopted by the General Assembly in resolution 39/248 of 16 April 1985, later expanded by the Economic and Social Council in resolution E/1999/INF/2/Add.2 of 26 July 1999, and recently revised by the General 1 Dr. A. Rajendra Prasad, “Historical Evolution of Consumer Protection and Law in India” Journal of Texas Consumer Law.
Assembly in resolution 70/186 of 22 December 2015.2 (United Nations, 2016) International Consumer Protection and Enforcement Network is an organisation which consists of consumer protection authorities from all over the world. The main responsibility of the ICPEN is to transmit information related to consumer protection legislation which might affect the consumer interests, it also aims at international cooperation and coordination among different consumer law institutions.3 (ICPEN) ICPEN's core strategies for Consumer Protection are:
1. To coordinate and cooperate on consumer protection enforcement matters.
2. To share information and intelligence on consumer protection drift and risks.
3. To share best information about key consumer protection laws, enforcement powers
and regulatory approaches to consumer protection.
1.2 Objectives
of the study: ● To assess consumer awareness among college students pursuing an undergraduate degree through an empirical analysis. ● To analyse the institutional mechanisms set up for consumer grievances redressal and the legal framework for consumer protection. ● To analyse the features of the Consumer Protection Act.
1.3 Research problem
The research problem of this study is the growing need of consumer awareness, especially among student buyers, to safeguard them from online deceit and false advertisements. Despite existing legislations like the CPA 2019, which have provisions for promoting consumer awareness, there is still a lack of consumer education among the people. An empirical study is therefore adopted to assess the problem. Students are unaware of their 2UN Trade and Development, Switzerland, available at: https://unctad. org/topic/competition-and-consumerprotection/un-guidelines-for-consumer-protection (last visited on October 10, 2023) 3 International Consumer Protection and Enforcement Network, available at: https://icpen. org/who-we-are (last visited on October 21, 2023) consumer rights and the redressal forums which resolve consumer disputes.
There is a lack of consumer education in the curriculum of educational institutions. 4
1.4 Significance of the study
This study performs an empirical analysis to examine awareness among non-law students pursuing an undergraduate degree. Although empirical data about consumer awareness exists, the target group varies for each study. This study places a special focus on non-law students as law students are likely to be aware about consumer rights, mechanisms, institutions etc. The survey analyses their awareness which is correlated with educational and government initiatives. Technological advancements have stimulated online trades resulting in a large number of sites available for online shopping. Students are proactive buyers, especially in the digital reals which makes them prone to unfair trade practices, deceit by sellers, misleading information, fraud etc.
This study also takes a doctrinal approach by assessing existing legislations for consumer protection and the efficiency of existing redressal forums, such as consumer courts and government councils. 2. Literature Review :
2.1 Consumer rights
The study of Sopanrao G 5 examined the need for consumer protection. A consumer is exposed to numerous unfair trade practices. Consumer protection is necessary against mal-practices, deceit by sellers and unsafe products which cause injury. Adequate rights and remedies through redressal measures ensure protection of consumers. The study of Debnath & Mazumdar 6evaluated consumer rights in the business context. The rights which protect a consumer from being cheated by manufacturers or salesmen or shopkeepers are referred to as consumer rights. Right to safety and right to information are aspects of consumer rights as they enable consumers to make informed decisions and choices regarding purchases. The study of Chaudhry et al.,7 examined the need for consumer protection. Illiteracy and ignorance subject consumers in India
4 N. Indirani, & Kumar, C. A, “Awareness on Consumer Rights among Undergraduate Students in
Tiruchirappalli City” International Journal of Educational Investigations (2016).
5 Sopanrao, G., “The Need For Consumer Protection and Protection Measures” Indian Streams Research
Journal (2014). 6 Debnath, A., & Mazumdar, “An evaluative study on consumer rights in the context of business” International Journal of Humanities & Social Science Studies (2015) 7 Chaudhry, K., Chandhiok, T., & Dewan, P., “Consumer Protection and Consumerism in India” International Journal of Multidisciplinary Research (2011) to fraudulent businessmen. Through deceptive advertising, misleading information regarding the product’s quality, utility and safety is provided which misleads consumers. Duplicate goods give rise to confusion when distinguishing between legitimate and imitated products. Lastly, consumers in India are unorganised, as opposed to producers and traders which leaves them at the latter’s mercy.
2.2 Institutional Framework
The study of Kumar et al. , 8 observed two kinds of Institutional machineries for dealing with the consumer grievances, (i) Government Councils and (ii) Consumer Courts. The government councils function at the national level and the state level through Central Consumer Protection Authority [CCPA] and the State Consumer Protection Council (SCPC) in each state of India respectively. The SCPC is headed by a State Minister In-charge of the Consumer Affairs in the State Government. The study of Chawla & Kumar 9 highlighted the establishment of the Central Consumer Protection Authority [CCPA] under the Consumer Protection Act, 2019 which was in addition to the existing three-tier grievance redressal structure.
The CCPA can suo motu or on a complaint received from an aggrieved consumer or on a directive from the government can regulate/inquire/investigate into consumer rights violations and unfair trade practices. The study of Saha & Khanna 10 studied the evolution of consumer courts in India. A quasi-judicial, three-tier structure for resolution of consumer disputes was provided under The Consumer Protection Act 1986 . The provisions of this Act covered all goods and services. The three-tier structure included the District Forum, the State Commission and the National Commission. If the consumer is dissatisfied by the National Commission’s decision, they can approach the Supreme Court of India. Bhattacharyya 11 studied the role of certain organisations in safeguarding consumer interests.
Apart from government councils and redressal forums, there are approximately 500 non-governmental organisations (N. G. Os), who are making a contribution towards safeguarding consumer interests by promoting the network 8 Kumar, R. , Rao, D. N. , & Narayana, M. S. “Consumer Protection in India” International Journal of Scientific Research in Computer Science Applications and Management Studies (2014). 9 Chawla, N. , & Kumar, B. , “E-Commerce and Consumer Protection in India: The Emerging Trend” Journal of Business Ethics (2021)
10 A. Saha, R. Khanna, “Evolution of Consumer Courts In India
The Consumer Protection Act 2019 and Emerging Themes of Consumer Jurisprudence” 9 International Journal on Consumer Law and Practice 115 (2021) 11 R. Bhattacharya, “An Analysis on the Various Aspects of Consumer Protection in India.” 1 International Journal of Research 1 (2014) of consumer associations and increasing awareness through supporting educational institutions.
2.3 Consumer Awareness
The empirical analysis of Mittal & Gupta 12 studied consumer awareness and knowledge of the natives of rural and urban areas of fifteen districts of Haryana. The survey was filled up by
600 respondents. It was observed at various instances that consumers neglect the malpractices
of traders even if they are aware. Furthermore, it was found that the Indian consumers were becoming increasingly aware of their rights and that the same may be credited to various media sources. The study of Gupta et al. , 13 conducted a doctoral study to analyse the need for ‘Consumerism’ in India. Consumerism refers to a social movement which aims to promote and protect consumer interests. Accounting for its diversity, India is intensely divided on linguistic, cultural, and religious grounds which gives rise to complex and intricate problems. Lack of social awareness and a non-vigilant approach of consumers makes the problem even worse. Ill information, poverty and lack of education are other contributing factors to an urgent need for consumerism in India. The study of Mishra14 examined the nature of consumer rights under which “right to education” is analysed.
This right refers to enabling consumers to make better purchasing decisions by ensuring access to information materials and programmes. Consumer awareness and education aims to provide consumers the required knowledge to make informed choices about goods and services. This can be achieved through consumer awareness campaigns by government and non-government organisations and curriculums of educational institutions.
2.4 Legal Framework
The study of Sarkar & Tiwari 15 provided an overview on consumer protection in India. The two governing acts of consumer protection were analysed as follows - The primary objective of consumer protection Act 1986 is to aware customers about their basic rights such as right to be informed, right to choose, right to safety, right to be heard and right to redress grievances. 12 I. Mittal, R. Gupta, “Awareness as an Instrument to Utilize Consumer Rights: A Consumer Protection.” 8 Mastnath Journal of Management 1 (2013) 13 R. Gupta, I. Mittal, et.al. “Measures for Consumer Protection in India and Consumerism.”, 5 RMS Journal of Management and IT 9 (2011).
14 Dr.Dhiraj Kumar Mishra, Awareness of Consumer Rights and Responsibilities in India: Prospects and
Challenges (2018) (Senior Assistant Professor in law T.N.B. Law College Bhagalpur)
15 R. Sarkar, A. Tiwar, “Consumer Protection In India
An Overview” 4 International Journal of Law Management and Humanities 1248 (2021).
The Act has been amended thrice. Through the Consumer Protection Act 2019, the pecuniary jurisdiction has increased. The amended act has given ample powers to the consumer courts as opposed to the previous Act. The study of Ramesh 16 examined the scope and definition of the Consumer Protection Act 1986 and Consumer Protection Act 2019. Consumer Protection Act
1986 defined a consumer as any person who buys goods or avails services for personal,
domestic, or commercial purposes. The applicability of "commercial purposes," however, gave birth to ambiguities for small businesses. Consumer Protection Act 2019 included teleshopping, online transactions and e-commerce thus widening its scope. It addressed the challenges faced by e-commerce under the previous Act. Parbhakar & Khurana 17 analysed the significant revisions brought by the Consumer Protection Act 2019. A mediation cell would be established by the state government under Section 74 of the Act. E-commerce standards have been introduced through the 2019 Act, which includes identity information security, presentation of terms of contract between seller and an e-commerce organisation, a 14 days time frame to process refund requests etc. The Act also criminalises wrongdoing by designating certain wrongs committed against consumers as crimes.
Lastly Section 89 of CPA 2019 provides punishments for false and misleading marketing done by a service provider or manufacturer. 3. Methodology The research methodology adopted is in the form of an empirical analysis of consumer awareness. The study’s target audience are Indian students who are pursuing an undergraduate degree except Law. The data collected forms a premise for assessing the efficiency of consumer redressal forums. The survey addresses two primary questions - (i) Awareness of redressal mechanisms and councils and (ii) The various sources of information of consumer awareness like educational institutions or media. It was circulated among university students of various states which include Delhi, Maharashtra, Uttarakhand, Karnataka and Haryana through google forms. The form was circulated to seventy non-law students, out of which fifty six responded.
It was in circulation for a period of five days. It contains eleven questions, out of which four collect personal data, for example - name, date of birth, university name and email address. The remaining seven analyse and record awareness among consumers regarding their rights 16 S. Ramesh, “A Comparative Analysis of Consumer Protection Act 1986 and Consumer Protection Act 2019 in India: Strengthening Consumer Rights and Redressal”, 3 Journal of Legal Subjects 1 (2023) 17D. Prabhakar, D. Khurana, “Roadmap of Consumer Protection Laws in India. ” 5 Indian Journal of Law and Legal Research 1 (2023). and redressal forums. The primary reason behind adopting an empirical analysis of the present research methodology is the growing need of consumerism in India.
With such a large and diverse population, it is imperative for our youth to be aware of their consumer rights and the mechanisms in place for the protection of their rights. This study goes beyond the scope of an empirical analysis by adopting a dual approach in the form of a doctoral study on the leading legislations which govern consumer protection and consumer rights. It further examines the consumer redressal mechanisms like consumer courts and government councils. 4. Results:
4.1 Institutional mechanism for consumer dispute resolution –
Consumer protection has become crucial in today's vibrant marketplace, ensuring that purchasers are protected from dishonest activities and given fair treatment in their transactions. The institutional mechanisms for consumer dispute redressal forums, which act as crucial pillars in the consumer protection framework, are at the heart of this safeguarding effort. These Consumer Dispute Redressal Commissions are essential for resolving complaints and ensuring that customers receive justice when they face unfair business practices. These forums were created with the core knowledge that trust between buyers and sellers is the foundation of a healthy, non-partisan economy. Customers require reassurance that their rights are upheld, and businesses profit from a devoted and assured customer base. The accessibility of these systems is one of its primary features.
Consumer dispute resolution forums are frequently set up in a hierarchical structure, starting with forums at the district level and progressing to state and federal commissions. This multi-tiered system guarantees that consumers can seek redress without facing too many administrative obstacles, regardless of their location or economic status. Additionally, these forums are governed by particular consumer protection laws and rules that spell out the obligations of both consumers and corporations. The Consumer Protection Act, 2019, gives these forums authority to resolve complaints, give compensation, and even punish negligent enterprises. Consumers are more confident because they know the law supports their concerns. Numerous forums have adopted online platforms in recent years as a result of the development of digital technology.
The shift to online dispute resolution improves accessibility while also accelerating the settlement procedure, bringing consumer protection laws into line with the quick-paced nature of contemporary trade 18. It becomes clear as we go more into the specifics of these institutional mechanisms that they serve as more than just forums for dispute resolution; they also serve as defenders of consumer confidence, defenders of fairness, and defenders of ethical business practices. With the ultimate goal of understanding how these forums help to build a safe and ethical marketplace for consumers, this research attempts to explore the subtleties of these forums, analysing their structure, purpose, obstacles, and triumphs. Fig 1
4.2 Legislative framework for Consumer Protection in India -
Consumer protection is a feature of many local government activities in India. Special legislation in this area started to emerge in the 1980s alongside the development and strengthening of the movement. Following its passing, the Consumer Protection Act was passed in 1986. It covers a broad range of legal requirements with clear limitations. Several laws relating to consumer protection have been passed. Constitutional Law: Under constitutional law, there is no such law that explicitly mentions consumer protection but
18 Ashok R Patil, “Consumer Protection in Electronic Commerce and Online Dispute Resolution Through
Mediation”, in D. Wei, J. P. Nehf et. al. (eds), Innovation and the Transformation of Consumer Law: National and International Perspectives, 177-190 (Springer Nature of Singapore, 2020). there are many provisions that direct the provisions toward the consumer’s interests. Such as under clause Article 19(1)(g) - freedom of profession, trade, etc. is ensured by the state and a citizen can not be prevented from this provision, but anyhow under article 19(2), no such right could be enforced in cases where business is illegal or dangerous. Licences and permits to carry a business can not depend on the absolute discretion of administration and policies have to be laid to discretion and have to be exercised judicially. In Dr. Shivarao Shantaram Wagle and Others v. Union of India and Others19.
The Supreme Court followed the same principle when it was invited to issue directions to the government to forbear from releasing Irish butter for human consumption, which had been imported into India under the EEC Grant-in-Aid for Operation Food Programme, on the ground of contamination by Chernobyl nuclear fallout. In the matter the Supreme Court appointed a Committee of Experts to give its opinion on the question whether milk and dairy products and other food products containing man made radio nucleus within permissible levels fixed by Atomic Energy Regulatory Board on 27th August, 1987, are safe and/or, harmless for human consumption" 20. When the Committee found the butter in question to be safe and harmless for human consumption, the Supreme Court declined to issue the restrictive orders regarding its release for human consumption.
The Supreme Court followed in the case of Vincent v. Union of India 21 directions were imposed for banning import and export of, manufacture, sale and distributing some drugs which had been recommended to ban by the Drugs Consultative Committee. The Supreme Court held that having regard to the magnitude, complexity and technical nature of the injury involved in the matter and keeping in view implications of the total ban on certain medicines it is clearly indicated that a mere judicial proceeding is not sufficient on determination of such a matter. The distribution of concepts related to product and service between state and centre are placed under Concurrent List 22. Criminal Law: The fraudulent use of weights and measures is defined in Sections 264 to 267 of the Indian Penal Code, 1860, and is punishable by up to a year in prison and a fine. The IPC's Sections
272 and 273 address offenses pertaining to public health, such as adulterating food or selling
noxious food or beverages, for which the same punishment applies as before. In the case of
19 1998 2 SCC 115
20Shivarao Shantaram Wagle & Ors vs Union Of India & Ors on 8 March, 1987
21 1997 2 SCC 165
22 Mohammad Azvar Khan, “Consumer Protection Under Indian Legal Framework” 12 Journal Of
Cardiovascular Disease Research 656 (2021) Sumant Prasad v. Sheojanam23, the Supreme Court ruled that Sheojanam Prasad had committed crimes related to selling items with counterfeit property marks and fraudulent property. The IPC's Chapter 19 addresses criminal breaches of service contracts, with particular penalties for providing and attending to needs related to the safety of consumers. who lacks the ability to perform because of mental instability, immaturity, illness, or physical infirmity. According to Section 153 of the Criminal Procedure Code of 1973, an officer in charge of a police station is authorized to enter any location within its boundaries without a warrant in order to inspect or search weights used for measuring and to have reasonable suspicion that they are being kept for an improper purpose.
The officer is then required to report this information, along with all the objects seized, to the magistrate. 24 Indian Contract Act 1872 The scope of the act is limited due to privity of contract, so the third party can not seek redressal, the judicial approach can be reflected by English cases like Carlil v. Carbolic smoke bait Co. In it the plaintiff on seeing an advertisement about carbolic smoke Ball a remedy against influenza and claimed an award offered by the company. The weaker parties with unequal power are protected by using the fundamental breach of contract of interests' instead of the exemption clauses. The court has given non-contractual duties their due respect. By encouraging competition and limiting monopolists, Section 27 of the act stipulates that agreements restricting commerce are invalid and promotes the interests of consumers. Section
73 and 74 addresses any loss or damage resulting from a violation of contract 25.
Consumer Protection Act 2019: On July 8, 2019, Mr. Ram Vilas Paswan, Minister of Consumer Affairs, Food, and Public Distribution, introduced the Consumer Protection Bill,
2019 in the Lok Sabha. The 1986 Consumer Protection Act was replaced by the Bill. It became
effective on July 20, 2020 Key features of the Bill included: Definition of consumer: A consumer is defined as a person who buys any good or avails a service for a consideration. It does not include a person who obtains a good for resale or a good
23 1972 AIR 2488
24 Mohammad Azvar Khan, “Consumer Protection Under Indian Legal Framework” 12 Journal Of
Cardiovascular Disease Research 656 (2021)
25 Id. at 659.
or service for commercial purposes. It covers transactions through all modes including offline, and online through electronic means, teleshopping, multi-level marketing or direct selling. Consumer rights: The Bill outlines six consumer rights, including the rights to:
1. Be protected from the marketing of goods and services that are dangerous to life and
property;
2. Receive information about the quality, quantity, potency, purity, standard, and price of
goods or services;
3. Have access to a wide range of goods or services at reasonable prices; and
4. Seek redress against unfair or restrictive trade practices.
Only the State and National Appeals from a District CDRC will be heard in complaints against unfair contracts, according to the State CDRC. The National CDRC will consider appeals from the State CDRC. The Supreme Court will hear the final appeal. Jurisdiction of CRDCs: The District CRDC will entertain complaints where value of goods and services does not exceed Rs 1 Crore. The State CDRC will entertain complaints when the value is more than Rs 1 crore but does not exceed Rs 10 crore. Complaints with value of goods and services over Rs 10 crore will be entertained by the National CDRC. Product liability: It is the responsibility of a manufacturer, service provider, or seller to make up for any harm or injury to a customer resulting from a subpar good or subpar service.
A consumer must establish any one of the Actspecified conditions for a defect or deficiency in order to be eligible for reimbursement26. Fig 2
26 Mohammad Azvar Khan, “Consumer Protection Under Indian Legal Framework” 12 Journal Of
Cardiovascular Disease Research 656 (2021)
4.3 Formal education on consumer rights in academic institutions -
Fig 3 Right to consumer education is one of the main consumer rights which Means the right to acquire the knowledge and skill to be an informed consumer throughout life. Ignorance of consumers, particularly of rural consumers, is mainly responsible for their exploitation. They should know their rights and must exercise them. Only then real consumer protection can be achieved with success 27. In the year 2003, all the States/UTs were encouraged to set up a Consumer Welfare Fund at the State level, so that voluntary efforts for promoting the consumer movement could be strengthened at the grassroots level through financial support. The ratio of sharing is 75:25 between the Centre and State (90:10 in the case of Special Category States/UTs) for the Corpus Fund of Rs. 10. 00 crore. With the help of the Government of India Consumer Welfare Fund has been set up in 15 States/UTs viz.
Gujarat, Andhra Pradesh, Orissa, West Bengal, Bihar, Nagaland, Karnataka, Tamil Nadu, Madhya Pradesh, Kerala, Haryana, Jharkhand, Telangana, Rajasthan & Sikkim 28. The Department's goal is to collaborate with academic institutions, government bodies, and reputable, dedicated voluntary consumer organizations to increase consumer awareness and, when feasible, resolve their complaints. It has developed a few significant cooperation platforms to achieve this. Moreover, the Department has broadcast 30- 27 Department of Consumer Affairs, India, available at: https://consumeraffairs. nic. in/organisation-andunits/division/consumer-protection-unit/consumer-rights (last visited on April 30, 2024)
28 Department of Consumer Affairs, Annual Report of 2022-2023
second audio commercials during various AIR programs by using All India Radio's reach. Relevant consumer issues like food waste, unfair trade practices, Swachh Bharat, consumer protection, and service were discussed in audio advertisements in charge. The following are the campaign's details: -
1. Campaign during the 2019 election results
2. Campaign during the June–July ICC Cricket World Cup
3. A campaign in July during the unveiling of the Union Budget 2019
4. A campaign on 2019 Independence Day
5. Prime time promotion during several shows on local radio and main channel
establishments in August 2019.
6. In August 2019, during the India-West Indies cricket series, there will be a Pan India
Campaign.
7. In August 2019, the Pan India Campaign was featured in national news.
An Integrated Grievance Redressal Mechanism in the way of the National Consumer Helpline and 6 Zonal Helplines would work parallel to help consumers resolve their problems. As the country’s largest advice provider, NCH is equipped to deal with any issue, from anyone, spanning various sectors. Through training, information systems, and operational support it provides the highest quality advice to the consumers. The NCH service offers information and advice through face-to-face, phone, and email services. It also takes up consumer advocacy and education responsibilities from a range of consumer issues. NCH under the convergence initiative, provides a platform to complainants to get their complaints addressed and redressed by companies who have voluntarily partnered with the National Consumer Helpline.
Thus NCH Convergence acts as a handholding platform for an Alternate Dispute Resolution of consumer grievances 29. The Indian government's Department of Consumer Affairs introduced the consumer awareness 29Department of Consumer Affairs, India, available at: https://consumerhelpline. gov. in/about-portal. php (last visited on April 30, 2024) initiative Jago Grahak Jago in 2005. Jago Grahak Jago means “Wake up consumers, know your rights when purchasing a product, and check the authenticity. ” Several platforms were established under this program to raise consumer knowledge of their rights and to stop unfair business practices. As a result, numerous persistent wrongdoings were stopped, and consumers received high-quality goods. A consumer forum and consumer court were formed as part of this plan to address consumer cases.
After complaints are received at the consumer forum, legal processes are conducted to resolve the issue. By offering a range of hotline numbers Jago Grahak Jago became extremely well-known and soon made contact with the very end node i. e. consumer 30.
4.4 Roles of Consumer Protection Councils -
1) District Consumer Disputes Redressal Forums (DCDRF)
The Consumer Protection Act of 1986 established District Consumer Disputes Redressal Forums, which are crucial for addressing consumer complaints at the local level in India. They are widespread and provide easily accessible venues for customers to seek justice when they have problems with goods or services. These forums play a crucial function, such as Filing and resolving Complaints: Consumers have the right to register complaints against companies who infringe on their rights, including those involving faulty goods, substandard services, or dishonest business activities. Mediation and adjudication: In an effort to reach a mutually agreeable resolution, they mediate between the parties concerned. In the event that an agreement cannot be reached, these forums have the power to bring legal action and render decisions.
Promoting Awareness: District Consumer Forums also strive to aware consumers of their rights and obligations while raising their level of familiarity with consumer protection laws. These forums have the benefit of being easily accessible to consumers, and they also resolve disputes quite quickly. However, there are issues like differences in efficacy between various forums. In a nutshell, the District Consumer Disputes Redressal Forums serve as the framework for consumer protection in India. They give customers an easy and effective way to file complaints, ensuring that their rights are upheld 31.
30 Dr.Dhiraj Kumar Mishra, Awareness of Consumer Rights and Responsibilities in India: Prospects and
Challenges (2018) (Senior Assistant Professor in law T.N.B. Law College Bhagalpur) 31M. Arora, A.K. Soni, “Redressal of Consumer Grievances through District Consumer Disputes Redressal Forums” 3 International Journal of Advanced Scientific Research and Management 52 (2018).
2) State Consumer Dispute Redressal Forums (SCDRF)
Various decentralized judicial bodies are placed in each state of a nation and are constituted under the Consumer Protection Act, 1986. Their main goal is to offer a quick and accessible process for resolving consumer complaints about products and services. These forums operate at the state level and are geographically dispersed to cover both major cities and isolated rural communities. This makes it possible for customers from various socio-economic situations to access these forums without having to deal with the practical difficulties of travelling to far-off locations. Such accessibility is especially important in nations with large rural populations since their awareness of consumer rights must be coupled with practical channels for resolving disputes. These forums function under a framework of the law that gives them the authority to address a variety of consumer concerns.
Consumers can register complaints about a variety of problems they encounter in the marketplace, from faulty goods to deceptive ads. State Consumer Dispute Redressal Forums have quasi-judicial authority, which enables them to call witnesses, gather evidence, and issue binding rulings. Additionally, the processes in these forums are generally informal, ensuring that customers, who frequently lack legal counsel, can effectively express their issues. This strategy supports the broad goal of consumer protection, which is to help people seek justice without having to deal with complicated legal issues 32.
3) National Consumer Dispute Redressal Forum (NCDRF)
The National Consumer Dispute Redressal Forum (NCDRF) is India's apex consumer dispute resolution authority, established under the Consumer Protection Act, 1986. It handles cases with claims exceeding Rs. 1 crore (approximately 35,000), making it the go-to institution for consumers facing substantial financial losses. The NCDRF comprises a President, usually a retired Supreme Court judge, and members with expertise in various fields. Its functions include:
1. Adjudicating appeals against lower consumer dispute commissions.
2. Facilitating class action suits for groups of consumers with common grievances.
3. Awarding compensation, issuing product recall orders, and punitive damages for severe
32K. Kaur, “Performance Analysis Of Consumer Forum Redressal System Of India”, 15 Gyan Management 29 (2021) violations of consumer rights.
4. Setting legal precedents that guide future consumer protection cases.
The NCDRF's significance lies in its role as the final authority in resolving substantial consumer disputes, ensuring uniformity in interpreting consumer protection laws across India. Its decisions not only deliver justice to individuals but also establish standards for businesses, promoting fair trade practices and compliance with consumer protection laws.33 Fig 4
4.5 Utilisation of mechanisms for consumer dispute resolutions -
Fig 5 33National Consumer Disputes Redressal Commission, India, available at: https://ncdrc.nic.in/ (last visited on April 7, 2024)
4.6 Central Consumer Protection Authority (CCPA) -
Central Consumer Protection Authority: To advance, defend, and uphold consumer rights, the central government will establish the Central Consumer Protection Authority (CCPA). It will govern issues involving consumer rights violations, unfair business practices, and deceptive advertising. A Director-General will lead the CCPA's investigation wing, which may look into or investigate such offenses. The CCPA will perform the following duties, among others: ● Looking into complaints of consumer rights violations, conducting investigations, and filing lawsuits in the proper court; ● Issuing directives to concerned traders, manufacturers, endorsers, advertisers, and publishers to stop or stop providing hazardous goods or services, reimburse customers for their purchases, and stop engaging in unfair trade practices as defined by the Bill.
Penalties for misleading advertisement: A producer or an endorser may be fined up to Rs 10 lakh and sentenced to up to two years in jail under the CCPA for making a fraudulent or misleading advertisement. If there is a second offense, the maximum punishment is Rs. 50 lakh and the maximum sentence for imprisonment is five years. A false advertisement's endorser may also be barred from promoting that specific good or service for a term of up to a year under the CCPA. The period of restriction may be extended to three years for each consecutive offense. However, there are some circumstances in which an endorser won't be responsible for such a fine. Consumer Disputes Redressal Commission: At the district, state, and federal levels, Consumer Disputes Redressal Commissions (CDRCs) will be established34. Consumers have the right to complain to CDRCs about the following:
1. Unfair or restrictive business practices;
2. Defective products or services;
3. Overcharging or misleading pricing; and
34 V.K. Singh, A.K. Singh, “Central Consumer Protection Authority - A Critical Analysis” 8 International Journal Consumer Law and Practice 59 (2020).
4. The sale of products or services that could endanger life and safety.
Fig 6
4.7 Awareness about consumer rights -
The maxim “Vigilantibus non dormientibus jura subveniunt” which means that the law assists those who are vigilant, not those who sleep over their rights plays a vital role here. Citizens are expected to be vigilant and aware of the law and their rights. Fig 7 5. Discussion : The survey questionnaire involved questions directed at assessing and recording the awareness of college students on various aspects of consumer protection, such as the Consumer Protection Act, 2019, the Central Consumer Protection Authority (CCPA) and Consumer Rights. 64. 6 % (Fig 1 - Institutional mechanism for consumer dispute resolution) respondents believe that they are aware of at least one government agency or body that is responsible for ensuring consumer protection. But, only 44. 6 % of respondents are aware of the Central Consumer Protection Authority (CCPA) and its roles.
When it comes to the CPA, 2019, 46. 2 % (Fig 2 - Legislative framework for Consumer Protection in India -) respondents have heard about it, however, they are not familiar with the provisions. 18. 5% haven’t even heard about it. When asked about how informed they feel about their rights as consumers, 55. 4% (Fig 7 - Awareness about their own rights) of the respondents felt somewhat informed and 27. 7% felt ‘not very informed. ’ Majority of the respondents are unaware of the leading legislation and government body that deals with consumer protection. In order to understand their source of knowledge, if any, they were asked if they had ever received formal education or training on consumer rights and protection in their academic life. 46. 2 % (Fig 3 - Formal education on consumer rights in academic institutions) of the respondents have not received any education and 13. 8 % are unsure.
Majority of the students have not been educated about their consumer rights and duties efficiently. This established a lack of consumer awareness programmes in school and college curriculums. Other than government programmes, non-government actors such as ngos’ and media play a crucial role in spreading awareness. In the digital age, where technology has become more accessible, especially for young college students, it is concerning that most students lack a basic awareness about consumer rights and duties. With the advent of online shopping and online transactions and its inclusion in the CPA, 2019, safeguards have been provided against online deceit, fraud, non-payment of refund etc. These students represent a bulk of online buyers which makes it important for them to be aware of these safeguards.
Consumer decisions and transactions are a crucial part of day-to-day life and the majority of the students engage in such transactions. The scenario is not the worst, while students are not explicitly aware of their rights and safeguards, they do have an idea about the roles of consumer protection councils, which are government agencies established to safeguard rights. Students were given multiple options to select what they believe are the roles of consumer protection councils. 81. 5 % (Fig 4 - Roles of Consumer Protection Councils) of the respondents chose ‘all of the above. ’ The options included - a) Educating consumers about their rights, b) Resolving consumer disputes and c) Promoting consumer awareness. The students believe that these should be the roles of a consumer protection body.
It is important to note that law students who are pursuing a 5 year or a 3 year LLB course or LLM were excluded from the survey as consumer protection is likely to be a part of their law curriculums. As each individual is a consumer and is prone to malpractices and deceit by sellers, consumer education needs to be diversified to various courses which are not exclusively related to law or business. Consumer awareness would lead to informed choices, reliability, fast transactions and purchases etc. It is also important for students to be educated about consumer protection as they are important actors in the ‘consumerism’ movements across the nation. Consumers are unable to report malpractices and file complaints as they are unaware of the mechanisms available to them. Sellers make use of this and often escape liability.
Students were asked if they have ever utilised any mechanism for resolving their grievances or for filing complaints. 55. 4 % ( Fig 5 - Utilisation of mechanisms for consumer dispute resolutions ) of the respondents have never utilised any mechanism. The data presented above highlights the importance of consumer awareness. Despite elaborate legislations and numerous redressal forums, many instances of violations of consumer rights in the form of deceit, deficiency in service, fraud etc, are encountered on a daily basis in the world’s second largest consumer market. 6. Conclusion: The survey results indicate a lack of awareness among college students about consumer safeguards, redressal forums and consumer rights. Them being a large fraction of India’s youth population need to be educated about consumer protections in order to establish a healthy consumer market.
By including ‘online transactions' within its ambit, the CPA, 2019 has had significant impacts on e-commerce. Safeguards have been implemented for online buyers who are largely characterised by young students. Awareness initiatives need to be adopted at grassroot levels. Schools and universities should include awareness campaigns as part of their curriculum and consumer awareness should be mandatorily included in syllabuses. Apart from government authorities, NGOs’ should undertake awareness programmes targeted at college students. Overall, a comprehensive policy needs to be implemented to spread consumer awareness and safeguard the rights of Indian consumers. Corroborative initiatives by NGOs and educational institutions are suggested to overcome the lack of awareness.