International Journal of Physiology, Nutrition and Physical Education 2018; 3(1): 463-466

ISSN: 2456-0057
IJPNPE 2018; 3(1): 463-466 Consumer movement: Origin and development
© 2018 IJPNPE
www.journalofsports.com
Received: 13-11-2017 Dr. Poornima Sharma
Accepted: 14-12-2017

Dr. Poornima Sharma Abstract

Assistant Professor, Institute of The success story of centuries like USA, Canada, Japan, Australia and other developed centuries of
Leadership Development, Jaipur Europe can be traced to strong consumer revolutions. Even drastic political changes in the USSR and
Rajasthan Skill University, Germany can be attributed to the dissatisfaction of their consumer citizens with the political systems
Jaipur, Rajasthan, India which failed to fulfill their consumer’s needs and rights. However, economic dependence continues even
after more than five decades of independence in India. Neither the rich nor the poor are able to exercise
their rights as consumers. The same is the position of other developing countries.

Keywords: Consumer movement, origin, development

Introduction
Consumer movement may be described as the collective power of consumers to take a country
forward with respect to awareness, education and development. The direction of such
movements, which attempt to improve the quality of living of the people, determine the degree
of development in a country (Kotler, Philip, I 988) [1].
Consumerism is the safeguard for the consumers against the unethical and abusive practices of
traders and business people. After World War II, when Ralph Nader Realized that the
Americans were cheated by the service providers in various ways, he spearheaded the
consumer movement. His book ‘Unsafe at any Speed’ created a stir and the people applauded
the benefits of consumerism. In 1962, John, F. Kennedy appreciating the movement
promulgated the Bill of Rights. It was the first Act that recognized four rights of the
consumers. The present concept of consumerism as it is understood in our country, is
essentially the American concept. In Kautilya’s Arthasastra’ (Vol IV) we find that
consumerism occupied important position in the existing administration. May of the measures
mentioned in the ‘Arthasastra’ are still applicable in the twenty-first century (Sarkar, 1989) [3].
The success story of centuries like USA, Canada, Japan, Australia and other developed
centuries of Europe can be traced to strong consumer revolutions. Even drastic political
changes in the USSR and Germany can be attributed to the dissatisfaction of their consumer
citizens with the political systems which failed to fulfill their consumer’s needs and rights.
However, economic dependence continues even after more than five decades of independence
in India. Neither the rich nor the poor are able to exercise their rights as consumers. The same
is the position of other developing countries.

Philosophy of Consumer Movement

The philosophy of the consumer movement centred mainly around testing the consumer goods
and evaluation of services offered, acting as a clearing house of information, promoting the
formation, development of new consumer organizations, organizing seminars, advising and
providing practical assistance in consumer protection and consumer education activities.
In the eighties, a need was felt to adopt a different approach — a change in the philosophy of
consumer movement confining it not only to spread of information and testing of goods, co-
ordination or aid in development or to render technical assistance but also to project an image
of an international advocate to fight against the world-wide trade in hazardous products,
Correspondence wastes and technologies. Multinationals found that consumer response was necessary for
Dr. Poornima Sharma
Assistant Professor, Institute of marketing their products. Corrupt and dangerous marketing practices devised in one country
Leadership Development, Jaipur deceived consumers in other countries. Such trade practices articulated both as philosophy and
Rajasthan Skill University, a programme. In the then president of ICCU, listed what he believed to be the guiding
Jaipur, Rajasthan, India philosophy of consumer movement.
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Critical Awareness: Citizens must be awakened to be more Solution to Consumer problems

questioning about the quality of goods and services: Consumer movement also focuses its activities on solving
consumer problems by interacting with the government to
Involvement or action: Citizens must act with social bring about appropriate, new or amended regulations and for
responsibilities, with concern and sensitivity to the impact of ensuring compliance from manufacturers and for imposing
their actions on other citizens, particularly in relation to the penalties for ensuring compliance from manufacturers and for
disadvantaged groups in the community. imposing penalties for violations. The protection of
consumers from health and environmental hazards is a
Ecological responsibilities: There must be a heightened governmental function. This is particularly important for
sensitivity to the impact of consumer decisions on the developing countries. Absence of effective law encourages
physical environment, which must be developed in a the import of dangerous or ineffective products from
harmonious way for promoting conservation. We must fight developed countries, where the sale of these products might
against the degradation of this most critical factor in have been banned. “To protect the consumers, not only
improving the real quality of life for the present and the governmental controls but also effective laws and legislations
future. are necessary which can help the consumers to find the
solution to their problems”.
Solidarity: The best and most effective action in through co-
operative efforts, the formation of citizens groups who Providing Consumer Information
together can have the strength and influence to ensure that Enacting laws alone cannot solve the consumer problems.
adequate attention is given to the consumer interest. Consumers also need to be informed of these laws. Besides,
These principles broadly cover all aspects of consumer such information, there is a need for making consumers aware
movement, both at local and international levels. Some of about the products. Provisions of adequate information about
these guidelines got crystallized in most of the major products such as quality, price, handling instructions, after
consumers’ campaigns all over the world. These ideas sales services, etc, also form a part of consumer movement.
percolated to other consumer activities, including consumer The consumers need to be informed about the safety measures
education. International Organization of Consumer Union to be followed while using the products. Information can have
(IOCU) currently known as Consumer International (CI) a significant effect on increasing efficiency of consumer
adopted these principles to develop a chapter for Consumer choice and developing consumer loyalty and resultant
Action and included them as part of consumer education profitability of firms that meet this need (George, 1978) [5]
activities.
History of consumer movement
Objectives of consumer movement Historically, the consumer movement can he studied under
A consumer movement anywhere is definitely less radical five period: (1) prior to 1980, (2) from 1980 to 1929 (early
than other movements of mass action. It relies on the efforts consumer movement) (3) from 1929 through the 1950s
of a smaller number of organizations based in capital cities. (renewed consumer interest) (4) the 1960s (consumption) and
Consumer movement is conceived as a social movement 1970s (5) post 1980s.
which seeks to enhance the economic wellbeing and
bargaining power of consumers. “The movement has enjoyed Period prior to 1980s
public support in many countries and maintained a continuous Ancestors of the modern man led a highly individualistic life.
presence in the political field. They wanted freedom and independence and were extremely
With international trade, some of the problems of consumers self-reliant. They were basically self-sustaining and co-
in the exporting countries are transferred to the importing operative. The welfare of consumers depended upon the
countries. Thus, whether a country is developed or is a honesty and buying skill of the few local shopkeepers. Most
developing one, consumers in all countries share the problems goods had no trademarks and barring few with brand names.
of industrialized societies. Consumers in all industrialized The wise consumers knew the merchandise and tried to avoid
countries face similar conditions of production and shaddy products. They have almost no protection against
consumption. They all have a set of core objectives, although merchants who raised prices needlessly, and could do little to
each may differ in some respects. These objectives, are three stop frauds such as misbranding and adulteration. But the
fold. Product safety, solution to consumer problems and effects of rapidly growing society towards the end of the
consumer information. century changed the role of the consumer (Aaker and Day,
198O) [9]. Industrialization and the growth in population
Product safety brought about 40 percent of the people to the cities. Despite
Removing hazardous products, deceptive sales practices and the growth of the doctrine of laissez-faire in the late
consumer exploitation from the market, form the basis for nineteenth century, state and federal governmental concern
consumer movement, as they affect the consumer both with the economy extends back at least to the very first years
directly and indirectly. The consumers are directly affected by of the Republic. Emmettee Redford has stated core of
the deceptive sales practices, i.e. they are the losers when they Governments as (i) to maintain order, (ii) to administer
are exploited by the producers and sellers. The consumers are justice, (iii) to provide a money system, (iv) to provide a
indirectly affected when they purchase and use hazardous postal system, (v) to provide certain facilities of commerce
household products which are likely to affect their safety such as patents, copy rights and uniform weights and
(Warren and Edward, I 975) consumers are deceived when measures, (vi) to protect the market and promote foreign
sub-standard or defective goods are sold to them. Many trade, and (vii) to provide internal aids to commerce such as
consumers face injuries or accidental death due to building roads.
inflammable fabrics, defective electrical appliances, kerosene
stoves, pressure cookers, consumption of hazardous drugs or
adulterated food items.
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“In the United States, there were more overt manifestations of From 1929 through the 1959s
Government services for consumers.”10 Thus, Pennsylvania The stock market crash of 1929 forestalled a widespread
had an extensive amount of regulatory activity in the early consumer movement. One third of labour force were
nineteenth century, including the inspection of various food unemployed. There was bargain sale of pre-depression
stuff, leather, tobacco, lumber, liquor and gunpowder. While merchandise. Consumers were aware of shoddy merchandise.
such activity benefited consumers, the benefit that accrued to Consumer advisory board declared unconstitutional Schlink
consumers were incidental to the prime purpose of legislation. and Kallet’s book entitled 1,00,000,000 Guinea pigs has
The original thrust on post-civil war regulating activity came pointed out loop holes in the 1906 Pure Food and Drug Act.
from farmers. State legislatures granted charters and New Suphanilamide Drug killed nearly 107 people in 1937.
franchises to rail road companies and subsidized them directly Improved food drug and cosmetic Act was passed in 1938.
and indirectly. Resentment to these practices transformed into The post-war period experienced strong economic growth and
political action and the result was the passage of the “Granger rising consumer incomes. Public attention was focused on
Laws” in mid western farm state in the 1870s and 1880s. such consumer problems as inflation and price stabilization,
Between 1868 and 1887 more than 150 bills and the rail road housing shortages, rent control and proposed social security
regulations were introduced in congress. In 1886, the need for legislation. The conception of Consumer protection can be
congressional action became apparent as a result of the seen in the “Programme for Action” recommended to
Supreme court’s decision in the Wabash case. The court held congress by consumer reports in 1949. The recommendations
that the states could not regulate inter state rail road traffic included a cut of military spending price and rent controls, an
within their own boarder even in the absence of congressional excess profit tax, an improved farm price programme, new
regulations. antitrust laws and others” (Herman, 1976).
The passage of the Inter State Commerce Act, I 887 is During the late 1940s and through the 1950s, the only
significant in the development of consumer protection for two consistent voice of consumer interest was consumer union
reasons. First, it was a landmark bill being the first which published consumer reports. While consumer reports
comprehensive regulation of a particular industry, second, it began to run articles on chemicals in food: meat inspection
established the inter State Commerce Commission and and finance rackets, it was largely a voice in the wilderness
established the proceeding of the independent regulatory and the period was one of the general quiescence for
commission. This proved to be a momentous precedent in its consumer protection.
implications for later enforcement of consumer laws. A In 1956, the National Association of Consumers quietly
nationwide system of rail roads served the economic news of merged with the Council on Consumer Information. Increased
those and had moved into urban areas but the congestion also use of Installment credit and buying new houses and new
led to urban poverty, tenement housing, hazardous working durable products prompted inclusion of consumer education
conditions, child labour and a variety of consumer problems. in school curricula.
To fight these problems, people came together. The numerous But the relative prosperity during I 950s and the interest in
reform organizations were also included in this movement. space and national defence kept things rather quiet on the
The populists and progressives promoted economic and social consumer front.
changes. Volunteer groups concerned themselves with local
issues and newly created unions sought equity for people of Consumerism during the 1960s and 70s
working class. 1960s was the beginning of the fourth era of consumer
The 1890s through the 1920s : (Early Consumer Movement) interest which is called consumerism. The “Hidden
The years from the 1890s through the 1920s can be called the Persuaders” by Vance Packard published in 1957, delved into
early consumer movement. The first consumer league was motivation research. Packard argued that the consumer was
formed in 1891 in New York city. In 1899, the National being manipulated largely unconsciously by advertisement.
Consumers League was founded and some branch offices Among other publications, Rachial Carson’s the “Silent
were established in twenty states. Upton Sinclair’s book “The Spring” (1962, environment), Jesica Mitford’s. The American
Jungle” (1906) provided an exposure to working conditions in way of Death” (1962, Funerals), David Caplovitz’s “The Poor
the Chicago meat packing houses. It created such substantial Pay More” (1963, Poverty and Credit), Maurine neuberger’s
outcry that congress was compelled to act, even though it “Smoke Screen” Tobacco and the public welfare (1963,
failed to enact Pure food legislation in the I 890s and again in Cigarettes) and Richard Harris’s The Real voice” (1964, drug
I 902. The Meat Inspection Act followed by The Pure Food safety) were the best selling books.
and Drug Act was passed in 1906. After few years later in The problem of drug safety continued as a pertinent issue.
1914, the Federal Trade Commission (FTC) was established Senator Estes Kafauver’s Antitrust and Monopoly sub-
to curb monopoly and trade practices. committee hearings were held intermittently from 1959
Patriotic fever, war time shortages and post war readjustments through 1962, the focus being the drug prices. The
then diverted much attention from consumer problems thalidomide scandal produced birth defects when taken by
although consumer incomes rose during early I 920s. Buyers pregnant woman. It brought widespread pubic attention. The
were confused by the growing array of products. Newer and drug amendments of 1962 became law on December 10,
unfamiliar consumer products flooded the market during the 1962.
buoyant years of the 1920s. On 15th March 1962, John F. Kennedy Presented the first
The consumerism fires were lit upon publication of “Your presidential message to congress which was directed at
Money’s Worth” by Stuart Chase and F.J. Schlink which consumer concerns. He asked for legislative action and new
became best seller in 1927. It attacked most advertising and programme in several areas. The most important aspect,
called for scientific product stafldards. Consumer’s Research however, was the new famous consumer Bill of Rights : (1)
Inc. was formed by Schlink in 1929 alongwith a Number of the right to safety, (2) the right to be informed, (3) the right to
other product testing laboratories, some of which were run by choose, and (4) the right to be heard. This message became a
departmental stores and trade associations were established. springboard for a new surge of interest in consumer concerns.
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Kennedy was explicit that government was the ultimate are in the headlines everyday and the consumer movement is
guarantor of these rights and hence built the foundation for responding in its attempts to resolve them.
much of the role federal consumerism that plays today. The largest consumer action group Consumer Federation of
In January 1964, President Johnson created a new white house America (CFA) represents approximately 200 local and state
position, Special Assistant for Consumer Affairs. In February organizations. The voice of CFA is being heard increasingly.
1964, Johnson sent a consumer message to congress urging Today every state has an organized consumer action group.
passage of twelve new laws. Other well known issues Strong organizations are in California and Ohio. The Local
advocate movement which had many facts: Women’s Hyde Park Chicago, co-operative is a very active group
Liberation, Gray Panters and so on. Later in 1965. Auto safety “MACAP” (Major Appliance Consumer Action Panel) and
emerged as a major consumer issue. Ralph Nader’s book on dozens of AUTOCAPS are in the cities across the country.
Automobile Industry.” Unsafe at Any Speed” in I 965 was a The list of present day groups relating the consumer interest is
major breakthrough in consumer movement. Moreover, quite long and includes many unions, Chamber of Commerce,
Rachel Carson Polarized the pollution issue with “Silent Co-operatives, Credit Unions and better business bureaus.
Spring”. The National Consumers League, the Family Finance
United States Government took Kennedy seriously and began Association, the National Council of Better Business Bureau,
an activist role. False and misleading advertising was a major and the Co-operative League of the United States are some of
target of the Federal Trade Commission (FTC) leading to the the influential organizations. The American councils on
outset of corrective advertising. Product safety became a consumer interests, successor to the council on consumer
major issue especially in the automobile industry. Products information, is a professional association for those in the
were withdrawn from the market because of pollution and consumer field, and it works in an information exchange
public health danger—DDT being a leading example. capacity. The Society for Consumer Affairs Professionals in
During the mid-sixties, caveat emptor “let the buyer beware” Business serves a similar function for those who work in
was changed to caveat venditor “Let the seller beware”. business.
Consumerism of the sixties also saw house-wives boycotting Both State and local governments actively sustained
supermarkets because of high meat prices expose in the form consumer interest in a number of ways. Large cities and
of book, news articles and radio and television programmes, countries also maintained consumer affairs offices. The
organization of local consumer action groups. expertise and effectiveness of more than 600 government
President Johnson made consumer protection a major part of organization also continued to grow.
his legislative programme. He included consumer proposal in
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