ACS- 01

6th Part 

Q.  "Consumers have certain rights but with that, there are certain responsibilities, which devolves on every consumer." Explain.  10

A  A responsible consumer is a person is the one who is fully aware of the implication of his right to choice and is accountable or answerable to other consumers and to the environment for his purchase decisions. Some of the responsibilities are-

Critical Awareness

-  A consumer should be alert and question about the price and quality before purchasing of goods and services used.

- He shouldn’t be tempted by clever and misleading advertisements with exaggerated claims of products and services. He must critically examine the utility of the product and enquire about the guarantees and warranties attached to them.

-  The consumer should always check correct weights and measures, dates of manufacture and expiry, pricing and ingredient labeling, the inclusion of quality marks (ISI, Agmark, Eco-mark),  etc., before making a purchase.

-  Adopting a non-compromising attitude on the quality of goods and services to ensure full value for money paid. 

Being prepared to act

-  To behave like a watchdog to the activities of trade and industry and raise one's voice against any form of exploitation by Trade and Industry. He must join hands with the people to launch consumer resistance measures like demonstrations or boycott of goods to protest for violation of any of the consumers' rights. He should be prepared to ask for redressal of consumer grievances.. 

Social Responsibility

The social responsibility includes responsibility towards other consumers and to the environment. None of his/her actions or choices should affect the rights and responsibilities of the other fellow consumers. In other words, any responsible consumer must not act in a selfish manner or for getting short term pleasure or profit. The consumer responsibility also includes the empowerment of the disadvantaged sections of the society.

Environmental Awareness 

As a citizen, he must be aware of the relationship between human society and the environment. He must behave knowing fully well that the environment is fragile enough and that it must be taken care of, nurtured by each generation. By doing so, the future generations can benefit. The consumer's responsibility not only involves nurturing the environment but also to reverse the damage done so far by augmenting the conservation of resources. 

Solidarity

To be ready to join forces with other consumers, consumer organizations in order to strengthen the consumer movement. They can ensure consumer protection measures through networking, campaign, and advocacy programs besides filling PIL on various consumer issues. 

Q.  What is meant by Consumer Responsibility? What are the methods of inculcating Consumer Responsibility?            20

A.  The methods of inculcating Consumer Responsibility are -

Educational institutions, as well as parents, have the primary responsibility of inculcating responsible consumer behavior in young citizens. Responsible Consumer behaviour can be inculcated by teaching the young to use public services and utilities responsibly. For example, conservation of electricity and water can be taught at home and in the institutions. Health-related lessons in nutrition should be given to make them aware. Another area of concern that can be taught is the ways of minimizing pollution and preserving green areas in and around the home and places of work. The awareness of environmental issues determines the choice of products For example use of Chloro Flouro Carbon (CFC) - free air- conditioners and refrigerators. It also involves a conscious rejection of non-biodegradable packaging like polythene, and minimal use of chemicals at home.    

Q. Explain the meaning & importance of the concept of social accountability.   10

A.   Meaning -

The producers, manufacturers, and providers of services are supposed to be conscious of their duties towards society in which they operate. That is, their sole concern should not be profit only. With the emergence of industrial production, the idea of social responsibility and accountability has become more important. At present, there are pressures from the social, legal, and judicial institutions in addition to those from the consumer and environment movements and groups to ensure social accountability. It means that all institutions in any society should fulfill and serve social objectives, and should be responsible and accountable to the society. 

Importance

           Social responsibility concerns are emerging from the broader socioeconomic processes and problems of equity and social justice. While the economic growth is measured in term of capital-output ratio and the rate of growth (GNP) of the economy, the value orientations such as social democracy, self-reliance, protective discrimination, the standard of living, and quality of life of a community as a whole are considered equally important today. These parameters are considered of equal importance in the process of social development. Thus the purely economic link between 'share-holders' and production organizations is expanded so as to include all sections of the community as 'stake-holders' in the health, well-being, and prosperity of the community.

         As a result of this expanding horizon and the emerging linkages between institutions and the community, the corporate organizations are increasingly becoming aware of the need for social accountability, either through internal evolution or due to external pressures from the governments and judiciary. The consumer organization is acting as a watchdog who accepts economic progress only when it leads to general wellbeing and happiness. The citizens and interest groups such as consumers, trade unions, environmentalists organize and inform people on how aware and committed they are and they should be to their social responsibilities. 

Q. How does the legislative & judicial process encourage social Accountability? 10

A. The very definition of social accountability should be outside the framework of the law. Such an accountability should be voluntary but not statutory. However, if voluntary accountability is missing then legislation and legislated norms are imposed by society. With the emergence of industrial production, the idea of social responsibility and accountability has become more important. At present, there are pressures from the social, legal, and judicial institutions in addition to those from the consumer and environment movements and groups to ensure social accountability. Thus, a spate of legislation has been enacted to include areas such as minimum wage, conditions of employment, hours of work, safety at work, effluent treatment, consumer protection, and safety.  

        Although the role of judiciary primarily is the interpretation of law and administration of justice but in terms of social accountability, the judicial domain has surpassed the legislated norms. The Supreme Court has stated that it would be a travesty of justice if large corporations are allowed to defer the prosecution brought against them and avoid facing the trial because of technical flaw for their alleged, deliberate and willful breach of the provisions of legislation such as the Water (Prevention and Control of Pollution) Act 1974. Similarly, the Supreme Court observed on a number of occasions how, especially the public sector corporations, (which are projected as model employers) fight needless litigations, raising needless objections, and adopting needless postures and procedures. The Supreme Court also passed orders on several corporations for dragging on the litigation in order to harass the weaker sections in prolonged court battles.

        The people in high authority have observed and recommended that unless continuous vigilance and pressure was maintained, the powerful links between bureaucracy and business and industrial houses which vitiate the system cannot be broken. Even the existing legislation needs to be tightened on several counts. The Sachar Committee that was formed to suggest measures on social accountability have suggested that expenses on litigation between employers and employees should be met from the corporate funds.

Q.  Discuss the social objectives and responsibility cast upon industrial and business organizations.                               10

A.  The nations all over the world have adopted industrialization as an instrument of social development. While the economic growth is measured in term of capital-output ratio and the rate of growth (GNP) of the economy, the value orientations such as social democracy, self-reliance, protective discrimination, the standard of living, and quality of life of a community as a whole are considered equally important today. These parameters are considered of equal importance in the process of social development. Thus the purely economic link between 'share-holders' and production organizations is expanded so as to include all sections of the community as 'stake-holders' in the health, well-being, and prosperity of the community.

         As a result of this expanding horizon and the emerging linkages between institutions and the community, the corporate organisations are increasingly becoming aware of the need for social accountability, either through internal evolution or due to external pressures from the governments and judiciary. Social objectives include issues such as :

a)  value the premises (industrial democracy; participatory management);

b)  developing business ethics where the only concern is not profit but also includes welfare and development of the society.

c)  moving away from the view that "social responsibility is a business opportunity to turn a social problem into economic opportunity, into well-paid jobs, and into wealth".

d)  moving away from practices such as management-sponsored trade unions, and shifting of units from regulated to less regulated areas;

e)  recognition that every business decision has implications for society;

f)  conformity to the spirit of law and compliance to rules and regulations ; 

g)  not allowing private and partisan interests that may result in industrial sickness and

h) concern for not only the quality of work but also for the quality of life of the community.

The four facts of social responsibility are

(a) involvement in community issues; 

(b) human resources development and utilization 

(c) the utilisation of material resources both renewable and non-renewable and to improve the environment; and 

(d) safety, service, and fair trade practices to the consumers.

      Social responsibility by the marketing professionals should lead them away from selling on the basis of untruths, false promises and fears, indecency, unfair advertising, restrictive practices, lavish advertising and public relations budgets, and generating artificial needs.                 

 Q.  Explain in detail the Right of consumer mentioned in the UN guidelines on consumer protection, 1985.                   20  

A.   The generally accepted Rights of Consumers as contained in the United Nations Guidelines adopted by the United Nations on 9th April 1985 are as follows:

THE RIGHTS OF CONSUMERS

The right to basic needs means that all consumers have the right to basic goods and services which guarantee survival. It includes adequate food, clothing, shelter, health care, education, and sanitation.

The right to safety means the right to be protected against the product, production processes, and services which are hazardous to health or life. It includes concern for consumer's long term interests as well as their immediate requirements.

The right to be informed means the right to be provided about the facts needed to make an informed choice or decision. Consumers must be given with adequate information enabling them to act wisely and responsibly. They must also be protected from misleading or inaccurate publicity material, whether included in advertising, labeling, packaging Empowering the Consumer, or by other means.

The right to choose means the right to have access to a variety of products and services at competitive prices and, in the case of monopolies, to have an assurance of satisfactory quality and service at a fair price.

The right to be heard means the right to advocate consumers' interests with a view to their receiving full and sympathetic consideration in the formulation and execution of economic and other policies. It includes the right of representation in governmental and other policy-making bodies as well as in the development of products and services before they are produced or set up.

The right of redress means the right to a fair settlement of just claims. It includes the right to receive compensation for misrepresentation of shoddy goods or unsatisfactory services and the availability of acceptable forms of legal aid or redress for small claims where necessary.

The right to consumer education means the right to acquire the knowledge and skills to be an informed consumer throughout life. The right to consumer education incorporates the right to knowledge and skills needed for taking action to influence factors that affect consumer decisions.

The right to a healthy environment means the right to a physical environment that will enhance the quality of life. It includes protection against environmental dangers over which the individuals have no control. It acknowledges the need to protect and improve the environment for present and future generations.

The protection and empowerment of consumers, in turn, would depend upon the various measures that are taken to enforce each of the rights.

The following gives an outline of some of the possible measures.

Right of Safety

1)  Measures and standards to ensure the safety and quality of goods and services.

2)  Facilities for testing and certification of essential goods and services.

3)  Policies to ensure that manufacturers compensate for defective or hazardous products.

Right to Choice

1) Control of abusive and restrictive business practices. 

2) Providing of after-sales service and genuine spare parts to ensure the reliability of the brands of goods produced.

3) Protection of consumers from unfair contracts and regulation of promotional markets and sales.

Right to Redress

1) Government setting up expeditious, fair, inexpensive, and accessible avenues.

2) Companies resolving disputes in a fair, expeditious, and informal manner. This can be done by setting up voluntary mechanisms such as advisory services and informal problem-solving procedures for consumers' benefit.

Right to Information

1) Information for consumers on proper use and risks associated with certain consumer products.

2) Free flow of relevant information relating to consumer products.

3) Governments developing consumer information programs in mass media aimed at rural and illiterate consumers.

Right to Consumer Education

1) Introducing consumer education in the basic curricula of the education system.

2) Education programs particularly for the benefit of low-income consumers in rural and urban areas.

3) Governments organizing training programs for personnel in education, mass media, and other professions.

4) Business and Trade Sectors initiatives participation in factual and relevant consumer education programs.

Right to Representation

1) Governments to facilitate the development of independent consumer groups.

2) Providing opportunities for consumer groups to present their views during appropriate times in the course of decision-making by the governments.

Right to Basic Needs

1) Adopting food safety measures, including safety criteria, food standards, and dietary requirements, effective monitoring, inspection, and evaluation mechanisms.

2) Adopting food standards of FAO, WHO, CODEX Alimentarius, or generally accepted international food standards.

3) Improving the quality and appropriate use of pharmaceuticals through integrated national drug policies.

4) Developing national drug policies that could address procurement, distribution, production, licensing arrangements, registration systems, and availability of reliable information on pharmaceuticals taking into consideration the relevant work and

recommendations of the WHO.

5) Developing, maintaining, and strengthening national policies to improve the supply, distribution, and quality of drinking water.

Right to Health Environment

l) Adopting measures relating to the use, production, and storage of pesticides and chemicals and services.

2) Including health environmental information in the labels of pesticides and chemicals. 

Q. Explain the definition of a complaint under the Consumer Protection Act, 1986. 5

A.  Complaint means any allegation in writing made by a complainant that-

I)  an unfair trade practice or a restrictive trade practice has been adopted by any Trader leading to an explanation of the complainant ;

ii)  the goods bought by him or agreed to be bought by him suffer from one or more defects;

iii)  the services hired or availed of or agreed to be hired or availed of by him, suffer from a deficiency in any respect;

iv)  a trader has charged for the price of the goods which is in excess of the price fixed by or displayed on the goods or any package containing such goods;

v) goods which will be hazardous to life and safety of the consumers when used, are being offered for sale to the public in contravention of the provisions of any law for the time being in force. It requires traders to display information in regard to the contents, manner, and effect of the use of such goods. 

6. Goods that are misbranded or turns out to be adulterated or damaged.