Unit 16 Trends in Consumer Empowerment: Structure
Unit 16 Trends in Consumer Empowerment: Structure
Unit 16 Trends in Consumer Empowerment: Structure
EMPOWERMENT
Structure
Objectives 1
Introduction
Definition
16.2.1 Consumer
16.2.2 Conslamer Empowerment
16.2.3 Sustainable Consumption and Production
Consumer Empowernlent
Need for Consumer Empowerment
16.4.1 Market Control of Consumer Options -
s Advertising
16.4.2 Depletion Of Natural Resources To Fulfil Artificial Needs
De-Linking of Source From End Product
b Disassociation With Natural Resource Eiase
16.4.3 Consumer Empowerment and Global Perspective
16.0 OBJECTIVES - - - - - -- -
16.1 INTRODUCTION
The world has undergone drastic social, economic and environmental changes in the last half
century. It is now increasingly being realised that no nation, people or strata of society can
distance itself from its rights or responsibilities as consumers. A situation has developed
whereby the growing middle class consumers of Southern, developing nations have begun
replicating wasteful and excessive consumption patterns of their Northern counterparts.
b e r L h y Iswes Trends On the other side, developed nations in an effort to correct environmental damages in their
own parts of the world, tiy to redress and compensate their own loss by controlling
environmental policies and the planning procedures of poorer countries. Also, one of their
objectives is to give themselves not only the right to sell their produce in developing
countries' market but also to buy their natural resources and cheap labour, In the name of
development, highly polluting and environmentally unaffordable lifestyle have been imposed
upon the traditionally sustainable lifestyle of the community.
Every human is a natural consumer. The identity as a consumer has attained special
significance as people ,start leaving bigger consumer footprints with heightened wasteful
consumption patterns taking root. Consumer Empowerment becomes imperative not just to
check such deleterious developmenrs but also advocate less h m techniques of production
and consumption. Consumer empowerment also serves the purpose of bringing consumers to
the foreground of the decision making process so that they play a proactive role in the
drawing up of legislation, regulations and policy matters which in effect, would directly have
bearing on their rights and choices as consumers.
16.2 DEFINITIONS
16.2.1 Consumer
"Consumer" means any person who buys any goods or avails of any service for a consideration
which has been paid or promised in full or otherwise. A transaction under a system of
deferred payment is also covered. The term consumer also means any user of product or
beneficiary of service who avails the same with the approval of original consumex but does not
include a person who obtains such goods for reslrle or for any commercial purpose.
1) The right to satisfaction of basic needs has different meaning for different societies and
countries. In the developing norld. basic needs of a consumer would be interpreted as
adequate food, clothing and sheltcr \\hereas the American or European continent would
interpret basic needs of a consumer as fair quality of consumers goods or prompt,
ensured and accountable service.
The right to Choice is also open to various interpretation. An element of responsibility is
inherent in this right. The right to choice is the freedom to choose the most well-suited
product from a variety of products available for the same purpose. But of late, with
increased marketing and with the commercial world acquiring a 'global village'
character, the right to choice has come to sign* consumption of goods and s e ~ c e s
which involve longer transportation miles and human labour and resources cost. For e g.
the year round availability of exotic fruits and vegetables is being termed as right to
choice by some commercial interests. On the other hand, right to choice also pertains to
choice of lifestyle options involving the right to choose an eco-friendly lifestyle based on
local and / or regional priorities. This would lead to reinterpreting current competition
profile in market . the local market responsive to local needs ought to have precedence
over MNCs pushing international names in developing.
The Right to be heard pertains to the right of the consumer to express his opinion,
observations and grievances at appropriate fora, which have to be in place and accessible
to the consumer.
The right to redress is the consumer's right to seek legal compensation and justice when
his rights are impinged upon. Redress mechanisms like consumer courts, lawsuits and
compensations provide the consumers with a cover against fraudulent practices and
trends.
Right to consumer Education is consumers' right to know and be aware of all
developments concerning his environment which might affect h s choices. Consumer
Education has many sources and caters to different age groups and sections of the society
through various systems of education. One of the pressing needs of consumer
empowerment today is to initiate the younger generation into the consumer education
mainstream.
Emerging Issues and Tmnds 6) The right to safety has expanded in purview now. In the past, the right to safety was
viewed in conjunction w t h physical safety regarding electric goods and other such
goods. With teclinological advancement, safety from a large number of existing and
potential dangers is needed. For e.g. consumers need to be protected from unchecked
introduction of genetically modified food in tlie mainstream. Various committees like the
Codex Alimentarius Comm~ssionhave been formed to look into the safety and viab~lity
aspect.
7) The k g h t to be lnformed has become a vital right for consumers today on account of
developments in the market and production processes taking placc everyday. Scientific
developments in laboratories like genetic engineering has far reaching effects not just on
consumers' health but also on the natural resource base of the planet. Such activities
have the potential to alter the genetic map of the planet forever. It is for this reason that
consumer organisations have been demanding adequate labelling of everyday food
products. In the developed world, laws to this effect are already in place requiring
labelling, to show ingredients (e.g. broccoli, beef), processing (e.g. frozen, homogenised,
irradiated), conformance to standards of identity (e.g. peanut butter must be made from
peanuts), and additives (e.g. sulfites, presewatives), Some countries require fat, protein,
carbohydrate and vitamin content of food to be labelled as well. The Codex. Alimentarius
Commission, an agency of the United Nations World Health Organisatio~land Food and
Agriculture Organisation, has been considering a proposal to adopt a guideiine
recommending that all countries require labelling of genetically engineered food. Codex
guidelines are not binding, but are often adopted by developing countries and can be
used to settle trade disputes (if a country adopts a Codex standard, that standard cannot
be challenged as protectionist). On the other hand, the inarket interests are decryillg such
consumer protection moves to protect their profit shares hive been projecting a
'skyrocketing food products cost scenario' to ward off compulsory labelling in Australia
and New Zealand.
8) The right to a Healthy Environment is in fact implicit to all rights ehat human beings
have in every aspect of life. It is the riglit to lead a healthy life style without dangers of
water, air, soil and nolse pollution. Healthy environment includes both global and local
environmental conditions. For e g. ozone depletion, global warming and increase in toxic
wastes are as much infringement of the right to healthy environment as po(1uted
groundwater supply or air laden with toxic gases at local levels. Recently the punlieur of
healthy environment for consumers has progressed to the natural disaster occurrences
which have increased marlifold due to unsustainable development and unchecked growth.
Consumers are now demanding the right to a safe and natural environment
1) What is consumer empowerment? Suggest some ways from your. own experiences in
which consumers can be empowered.
............................................................................................................................................
- Trends In Consumer
16.5 SUSTAINABLE CONSUMPTION AND THE CONCEPT Empowerment
OF CONSUlMER EMPOWERMENT
Ecological footprint is a concept about the area of land needed to provide the necessary
resources and absorb the wastes generated by a community-to highlight the impact of cities on
the environment. According to an estimate, a typical North American city with a population of
650,000 would require 30,000 square kilometres of land-an area roughly the size of Vancouver
Island, Canada-to meet domestic lleeds alone without even including the environmental
demands of industv. In comparison, a similar size city in India would require 2,800 square
kilometres.
Sustainable Consumption is also important to safeguard scarce natural resources and bio-
diversity. Sustainable consumption and consumer empowerment go hand in hand. This can be
explained by the example of patenting and bio-piracy which is rampant in the developing
world currently. Unsustainable and unethical production patterns have driven the Western
economies to seek monetary benefits by raiding developing world's rich bio-diversity. The
developing world consumers, apart from practising sagacious consumption benefits
themselves, need to empower themselves to fight plunder of their natural resources. They need
to be aware of the legal aspects of the problem and prepare themselves to safegtmd what is
rightfully theirs.
16.6.1 UN Guidelines
The origins of UN guidelines can be traced to the 1970's when the UN recognised and
emphasised the importance of consumer protection for d l round economic and social
development of countries all around the world. In 1977, the Economic and Social Council
asked the Secretary General to prepare a survey of national institutions and legislation in the
field of consumer protection. This was follow& -by a series of events which culminated in the
adoption of guidelines for consumer protection in April 1985.
The guidelines provide a framework, with special emphasis on the developing world, to use in
establishing and elaborating consumer protection policies and legislation.
Objectives
To assist countries in achieving or maintai6Lg adequate protection for their population
as consumers;
0 To facilitate production and distribution patterns responsive to the needs and desires of
consumers;
To encourage high levels of ethical conduct for those engaged in the production and
distribution of goods and services to consumers;
To assist countries in curbing abusive business practices by all enterprises at the national
and international levels which adversely affect consumers;
To facilitate the developing of independent consumer groups;
To further international co-operation in the field of consumer protection;
0 To encourage the development of market conditions which provide consumers with
greater choice at lower prices.
Guidelines
1) Physical Safety
4)
\
,
Standards for the safety and quality of consumer goods and services
Distribution facilities for essential consumer goods and services
5) Measlures enabling consumers to obtain redress
6) Education and information programmes
7) Measures relating to specific areas
16.6.2 Consumer Welfare Fund
Consumer Empowerment has taken various forms, one of which is the creation of 'Consumer
Welfare Fund' by the Government of India with the amount accumulated from excess excise
tax and customs duties not refundable to the manufacturers and importers. The main aim of
establishment of the fund is to strengthen consumer empowerment and the Consumer
movement, creating consumer awareness, informing consumers of the latest trends in courts
and strengthening voluntary organisations engaged in consumer education.
16.6.3 Legislation
Consumer Protection Act, 1986
The Consumer Protection Act came into effect on July lst, 1987 in the whole of India. It was
meant to check unf'air trade practices and deficiency in goods and services. Before the
Consumer Protection Act, the issue of consumer protection was addressed partially in other
acts like the Sale of Goods Act, PFA Act, the MRTP Act etc. this left a lacunae in effective
pursuit of consumer protection and thus the Consumer Protection Act was the first
comprehensive Act 16 deal with the issue of consumer protection and empowerment.
In 1993, the Act was arr~endedto endow more powers to consumer courts and to makc the Act
still more comprehensive in addressing co:lsumer grievances and problems.
Changes B m g h t abmt by Amendments in Consumer Protection Act
The pcuniary value of complainant to k adjudicated on by the District Fora and State
Commission was raised to Rs 5 lakhs and Rs 20 lakhs respectively, compared to the previous
value sf ?eF 1 lakh and Rs 10 lakh respectilrely
The scope of consumer protection has increa.& marlifold to cover in its ambit, rnancrs of
mdical negiigence, dcfects in goods, deficiency In services by construction agencies,
insurance, bmks, teiecoln, postal and othcr service scctor agencies
Also, the Supreme Court has held that the relation between tlie medical practihmr and the
patient carries wittun it, certain amount of t m t and therefore the contract between the
medical practrtioner arid the patlent cannot be treated as a contract of personal m i c e but that
of contract of senices and senice rendered by medical practitioner to his patient under such a
contract is n6t covered by the exclusionary part of the definition of service contained in
Section 2 (1) (0)of the Act.
Therefore the services rendered to a patient by a medical practitioner ( except where the
doctor renders service free of charge to every patient or under a contract of persMlal service)
by way of consultation diagnosis and treatment, both medical and surgcal, would fall within
the ambit of 'service'. They are not excluded from the ambit of Consumer Protection Act.
- -- -
Surl-ogate Advertising . Indirect a& crtjsing by way of using another event or activity
as a means to subtly advertise the product. FOPe.g.
sponsoring sports and cultural events is a fonn of surrogate
adpertising.
1) Over-consumption places great stress on the natural reserves of energy resources because
the earth is the source of all energy supplies of energy for e.g. coal, water, minerals,
wood, food, medicines, herbal plants etc. With the ever-growing population, earth's
limited and fast vanishing resources are already under great pressure. This scenario is
compounded by excessive, wasteful and unnecessary consumption.
2) Physical Safety
Promotion and protection of consumers' economic interests
Standards for the safety and quality of Consumer goods and senices
Distribution facilities for essential consumer goods and services
Measures enabling consumers to o b t a i ~redress
Education and information programmes
Measures relating to s w i c areas
3) See Section 4, Consumer Empowerment ;
NOTES