2nd Part
Q. Consumer Cooperatives 5
A. Consumer Co-operatives are sometimes mentioned as the starting point of the Consumer Movement. In general, consumer co-operatives have been successful in halting some of the abuses of the monopolies and in improving conditions of the lower-income classes. They have undertaken consumer education, elementary product improvement and other projects of interest. The first consumer co-operative store in India came up in Madras in 1904.
From the Third Five Year plan onwards, much emphasis was given by the governments on the development of consumer co-operatives and to make them viable. In 1975-76, Rs. 5.5 crores were invested in consumer co-operatives in accordance with the 20 point program. Consumer co-operatives are very important for improving the distribution of essential goods through the Public Distribution System (PDS) and thus helps in combating inflation. It has been announced that 10 to 20% of the supplies of basic requirements like baby foods, bicycles, blades, cloth, and students' needs, etc. would be through co-operatives. At present, the co-operatives are distributing about 28% of the consumer goods under P.D.S through retail outlets (fair price shops) in rural areas. Nearly 51,000 village societies and their various branches distributed Rs. 2500 crores worth of consumer articles in rural areas in 1989-90.
Q. Public Distribution System 5
A. The PDS is meant to take care of the minimum nutritional requirements of the economically vulnerable sections of society. The PDS now covers a population of around 500 million through a network of nearly 5 lakh fair price shops. Rice, wheat, sugar, kerosene oil are included in the list of items distributed to the cardholders through the PDS. In some states items such as edible oils, handloom cloth, tea, iodized salt, and a few other products are also supplied through the system. Consumer co-operatives play an important role in improving the distribution of essential goods through the Public Distribution System (PDS) and combating inflation. But the huge subsidies involved in running the PDS, estimated at Rs. 5,000 crores, and the leakages in the system have prompted the government to have a re-look at the PDS and specify targeting of beneficiaries. In fact, the system now in. operation is the TPDS-Targeted Public Distribution System.
Q. Directive principles of state policy. 5
Q. Explain the constitutional provisions that not only empower the citizens in general but also empowers them as consumers. 10
A. The Constitution provides for Directive Principles of State Policy. Although these are not enforceable by law like fundamental rights, Article 37 asserts that "the Directive Principles of State Policy are fundamental in the governance of the country and it is the duty of the state to apply these principles in making laws".
Art. 38(i)- Directive Principles envisage that the state should strive to promote the welfare of people by securing and protecting as effectively as it may, a social order.
Article 39 states "The state is required to frame its policy that promotes the security, life, health, and environment".
Art. 39(a)- It also states that the citizens, men, and women equally, have the right to an adequate means of livelihood.
Art. 39e - that the health and strength of the workers, men, and women, and the tender age of children should not be abused & that citizens should not be forced by economic necessity to enter vocations unsuited to their age or strength.
Art. 39(c) That the operation of the economic system does not result in the
concentration of wealth and means of production in the hands of the few which is harmful to the common people.
Section 39A That free legal aid is provided to the poor and that opportunity for securing justice are not denied to any citizen due to poverty or other disabilities.
Art.47. - It is the responsibility of the state to improve nutrition and raise the standard of living, improve public health and in particular, the prohibition of consumption of intoxicating drinks and use of drugs which are injurious to health
Art. 48A - Provisions are to be made for protection and improvement of environment and safeguarding of forests and wildlife.
Thus, one can see that the Indian state has been enjoined by the constitution to take care of the citizens as consumers.
Q. Discuss the changing trends in the consumer movement. 10
A. Historically, the consumer movement was focused to a large degree on the rational behavior within the market system; often only the local market. The main aim was to educate people to obtain 'value for money' by purchasing the goods and services based on informed choice. This approach stressed greater equality between producers /distributors and consumers at the point of purchase.
Over a period of time 'Value for People' has become an additional fundamental aim of the consumer movement. This essentially means that consumer education should enable people to develop a critical and analytical view of the goods and services, being aware of consumer rights and responsibilities, and the fundamental socio-political and economic factors (both local and international) that affect the supply of, products and services.
As the concept of 'Green Consumerism' became widespread, consumer education today is orienting the societies to consume products and services that are based on an ethical and environmental conscienceless. Producers and their products are no longer merely judged on quality, durability, performance, price and after-sales services. More and more consumers now evaluate the products and producers based on three additional criteria; i.e., Ethics, Ecology, and Equity.
Today because of consumer movement the business enterprises, both government and private, are judged for their social responsibility by the consumers. The parameters of social responsibility being - (a) respect for the environment (b) sensitivity to cultural diversity (c) public accountability through disclosure of information (d) advancement of women's rights and position (e) impact on local community-based industries and (f) employment policies and a fair deal for workers including health and safety standards at the workplace.
Q. What are the basic reasons for the development of consumer movement in the world including India? Explain the factors that stimulated consumer movement in recent years. 20
A. In west -
The rapid growth of consumer organizations in the West was due to two important economic reasons. First, was the mass production of goods and the second was the rising income has increased in the purchasing power of consumers. Shops were full of various kinds of merchandise and buyers were in need of independent and reliable information that can guide about the quality, price and advertisement claims of these products. With the advent of new materials and new production processes, the choice before consumers became increasingly "difficult. As the choice before consumers became more complicated it led to the development of consumer movement. The first consumer organization started in America and it spread to the rest of the world latter.
In India
The origin and growth of consumer movement in India have many similarities to the movements elsewhere in Asia, however, it was completely different from the circumstances in the west. In the 1960s, organisations such as the Consumer Guidance Society of India (Bombay) were formed to inform and educate consumers on the quality of goods and services and to conduct simple tests on goods of daily consumption. Shortages in the supply of essential commodities and the unsatisfactory functioning of the public distribution system (PDS) led activists to form consumer organisations in their towns and localities to ventilate their grievances to the concerned authorities. Several such organisations which were formed between 1970-1980 were primarily concerned with the problems of inflation, food adulteration, quality of goods and the loopholes in the public distribution system. These organisations serve a very useful purpose as voluntary vigilance groups in the market place.
The third phase of growth of consumer movement covering the period from 1981 to 1990 signifies the expansion and consolidation of the consumer movement in India, specially after 1986. With the enactment of the Consumer Protection Act 1986, there has been a spurt in the number of new organisations in the country.
The modern consumer movement that began more than 50 years ago, has an important role to play in realizing a just and fair society. Its objective today is that the conditions in which consumers have to live must become better and more equitable. It approves of economic growth only when this leads to general well-being and happiness. Through careful research and concerted action, it tries to remove the imbalance in knowledge and power between suppliers and consumers.
Some of the factors that stimulated the consumer movement in recent years are(agendas of consumer movement) -
1 Participation by consumer organisations on an equal footing with other corporate groups in society for the formation of policies that affect those they represent;
2 Ensuring that the basic needs of all consumers are met these include adequate food, clothing, shelter, health care, sanitation, and education;
3 To promote rules and regulations, laws that safeguard consumers from hazardous goods and services. Its agenda also includes a reduction in social costs and environmental pollution;
4 Procedures to provide effective redressal to consumer complaints at all income levels;
5 Accurate and adequate information to help consumers choose;
6. Consumer education to ensure that all people may acquire the knowledge and skills necessary to become active and informed consumers. They can thus exercise their rights and play their economic role. Special attention must be given to the needs of vulnerable groups such as children, handicapped and the elderly.
7. Measures to enhance fair competition and stopping of unfair trade practices. It opposes restrictive trade practices or barriers to trade in order to "protect" business and state enterprises at the expense of the private individual;
OR
The basic reason for the development of consumer movement in India is different from those in the West. In India, the basic reasons for the consumer's movement have been:
# Shortage of consumer products; inflation of the early 1970s
# Adulteration and the Black Market.
# Inferior quality of goods and lack of product choices due to the inferior quality of technology available
# Thrust of consumer movement in India has been on availability, purity, and prices
The factors which stimulated the consumer movement in recent years are:
# Increasing consumer awareness, Spread of education and knowledge have made people aware of better standards of living and their rights as consumers.
# Declining quality of goods and services
# Increasing consumer expectations because of consumer education
# Influence of the pioneers and leaders of the consumer movement
# Organised effort of various consumer organizations for complaint redressal.
Q. Power of Consumer Boycott 5
A. The boycott of companies and products, the power of consumers not to buy any product, is one the most powerful instrument in the hands of the consumers. The consumer should use this power individually and collectively in a much more assertive manner for its full impact. The companies can be forced to realize that they can’t function in isolation and that their survival also depends on customer satisfaction. However, the lack of unity among consumers is one of the major problems in organizing consumer resistance or boycott programs by consumer organizations. Economic inequalities among consumers themselves are another factor. It is said that the 'Consumer is a King in the Market Place'. This statement can be true only if consumers can get together for an effective boycott of high priced goods, defective and shoddy merchandise and profiteering businessmen.
Q. What is the role of public opinion in building consumer awareness? 10
A. It is one thing to have rights enshrined in the statute books and altogether different in getting these rights enforced. A very small percentage of knowledgeable consumers exercise their rights. Consumer justice through Consumer legislation and enforcement procedures is possible only when there is consumer awareness.
The public opinion helps in disseminating information and it helps in creating awareness in the society. It checks the producers and provides information to the consumers. A consumer movement is a unique form of social action. It requires people who are genuinely concerned with issues such as exploitation of consumers by business groups, faulty public distribution system, adulteration of food, manufacture of spurious drugs, unfair trade practices, misleading advertisements, the safety of goods, public transportation, lackluster health services, false weights, and measures, growing environmental pollution and poor civic amenities.
Consumer activists who are well-versed consumer laws, various state & central government orders under the Essential Commodities Act, Prevention of Food Adulteration Act, Sale of Goods Act, Drugs and Magic Remedies Act, the Packaged Commodities Order, etc. relating to consumer protection can help in creating public opinion in the society. If the need arises they can join hands with consumers for the boycott of certain producers and products besides filling PIL in courts. Thus through public awareness, the companies can be forced to realize that they can’t function in isolation and that their survival also depends on customer satisfaction.
Hence, in many countries, there is a growing realization of the need to impart consumer education to people at a young age. It prepares them to play an active role in the economic field and the social life of the country. In this way, they can make a meaningful contribution to the improvement of the quality of life of the people in society..
Q. Green consumerism. 5
A. 'Green Consumer' means an informed consumer who takes care of the environment, conservation of resources and prevention of pollution while consuming the goods. As the concept of 'Green Consumerism' becoming widespread, consumer education today is orienting the societies to consume products and services that are based on an ethical and environmental consciousness. Producers and their products are no longer merely judged on quality, durability, performance, price and after-sales services. More and more consumers now evaluate the products and producers based on three additional criteria; i.e., Ethics, Ecology, and Equity. A green consumer asks the following:
a) Is production ethical? Does the concerned company engage in business practices that take advantage of lenient legal, social and environmental regulations in Third World host countries? This is as compared with the strict regulations existing in the company's home country. Does the company engage in malpractices like bribery and corruption?
b) Is the production ecological-friendly? Is the production process in harmony with the environment?
C) IS the production equitable? Is it fair to the traditions and economics of local communities in the vulnerable Third World societies?
Q. Discuss the progress and development of Consumer Movements in: 20
(a)The United States of America, and
(b)Developing/Third world countries.
A. The USA was the first country in which people raised their voices against the malpractices of the business community. Later, it spread to the other parts of the world. The United States has witnessed three distinct phases in the consumer movement; one in early 1900, another in the mid-1930s and still another one in the mid-1960s.
Pre-Thirties(First Phase)
The first consumer movement, which started in the pre-thirties, was the outcome of rising prices, drug scandals, and other related factors. These factors contributed to consumer awareness and the first phase of consumer movement began with protests and investigations. As a result of these protests two landmark laws were enacted in the 1906 - Food and Drug Act and Meat Inspection Act. These were meant to protect the interests of the consumers.
The Thirties
The second phase of the American Consumer movement was induced by factors like the Great Depression and the Housewives' strike. A tragic case of cosmetic use that led to blindness made the American Consumers more conscious of their rights. This phase provided a sort of ideological background to the consumer movement. The origin of the consumer movement can be traced to back the literature of this period. They helped to broaden the grass-root support for a consumer movement. During the 1930s, there appeared many periodicals that were devoted to consumer problems. This phase of consumer movement was marked by the effective implementation of laws to protect consumer interest.
Mid 60's
In the 1960s, a new wave of consumerism developed. It was less economic and more social in its orientation. It showed less concern for getting your money's worth of goods and paid more attention to the legislation aimed at correcting the imbalance of power between the buyers and sellers. The government began to enact new consumer rules and corporations started creating their own in house consumer departments. Different groups like senior citizens, students, etc. started advocating legislation to promote their interests.
Today, in America, consumer movement continues to be a viable and active social movement. There are more than 400 state and local consumer groups with 2 million members. The movement has become diversified and institutionalized and has broadened Its base.
The consumer movement in developing countries
All developing countries severely lack in consumer protection measures. A large number of factors contribute to such situations. The market conditions are unfavorably skewed against consumers. The consumer movement was also affected in developing countries because of poverty, illiteracy, and ignorance. With such a background, just providing information will not serve the purpose; which
is the case in developed countries. What was needed was a proper consumer education including information and knowledge about market processes, budgeting, decision-making, asserting consumer rights and accepting consumer responsibilities.
The credit for initiating consumer movement in the Third World goes to C.I. (formerly known as IOCU) which by 1964 decided to broaden its vision beyond consumers in the West. Asia, Latin America, and the Caribbean were the first among Third World regions to invite its attention. Remarkably in 10 years, it encouraged organizations to come up in India, Iran, South Korea, Malaysia, Pakistan, and Singapore. C.I. set up a Regional Office for Asia and the Pacific in 1974.
Q. Describe some of the imp. characteristics of the consumer movement in Japan. 10
A. Unlike in the U.S.A., consumer movement in Japan made its initial progress under the leadership of women. Also, while the concern of leaders of consumer movement in the U.S.A. was with the safety of automobiles, in Japan it was the basic problems relating to day to day living. The leadership of testing consumer products in Asia belonged to Japan. There was a competition between the Japan Consumer Association, the Japan Housewives Association, and the Japan Consumer Union.
In Japan immediately after the end of the war in 1945, the Kansai League of Housewives was formed. This was organized further in 1948 on the occasion of a protest rally in Tokyo against inferior match sticks. The League's office tested items of daily use and exposed inferior and defective merchandise. It was the league's discovery of false merchandising In 1960 when 'Canned Beef', instead of 'Whale' and
'Horsemeat' were found. As a result of it, the law for the prevention of 'false labeling' and 'false premium drawn' was enacted by the Fair Trade Commission. In 1956, the consumer movement was joined by men and in 1961, Japan Consumer Association came into existence. In 1964 the 'Livelihood-School Movement', a voluntary and decentralized local was inaugurated. In every elementary school district, groups of 50 to 100 housewives formed 'Livelihood Schools'. They organized meetings to discuss the problems by inviting producers, officials, scholars, etc. This created an awareness about the consumer movement and moved local governments to establish consumer affairs offices.
An important event in the history of consumer movement in Japan was the agitation against the double pricing system and boycott of color televisions. This was in September 1970. The success of this agitation led to slashed prices.
Today, in Japan the consumer movement is still dependent on government support to a great degree. But, there is a growing community movement in problem areas like pollution, clean environment, garbage disposal, etc. Women's decade has given a new impetus to the consumer movement in Japan.
Q. # Discuss the important role played by consumer organizations in shaping the Consumer Movements in our country. 10#
A. Till 1970, the average Indian consumer was not seriously concerned about the problem of rising prices or shortages of essential communities. Rationing schemes providing a certain quantity of assured supply of food grains and other commodities at fixed prices that provided insurance against vagaries in supplies and fluctuations in prices. The money in Consumer Movement goods circulation was also limited and therefore inflation was under check.
However, after 1972, then things started looking grim. There was an unexpected shortage of everything from foodgrains to toilet soaps. Adulteration was the order of the day. As a result of it the consumers began to feel the need to organize themselves into pressure groups to voice their grievances. A few groups emerged as spokespersons for the consumer community. These groups identified the weaknesses in the system, examined their rights and the position of the consumers in the existing legal framework.
The Public Distribution System (PDS) meant to supply essential commodities to consumers in the rural and urban areas was the first area of concern and action for these consumer groups. Thus, complaint handling, grievance redressal and activating the inactive and indifferent government machinery were the items on the agenda of about 20 odd consumer organizations across the country that were functioning by 1974. Though limited, the success stories of these consumer groups which were highlighted by the media spread hopes among several others and thus, more consumer groups came into being. By 1976, there were over 60 consumer organizations in the country.
By the 80s, consumer concerns were getting enlarged from problems of short supply and distribution of food grains to short weights, adulteration, food safety, quality, consumer education and training, environmental issues, problems of the poor and vulnerable sections of the society. From a study of the existing laws such as the Essential Commodities Act, the Weights and Measures Act, the Prevention of Food Adulteration Act, consumer groups found that these and several other laws were insufficient to deal with consumer protection and they felt the need to regulate trade and industry. The groups, thereafter, lobbied with the government and political parties on the immediate need for comprehensive consumer protection legislation. These efforts ultimately resulted in the government coming up with the Consumer Protection Act 1986 (CPA). This has been implemented from 15th April 1987 onwards.
Q. # Explain the achievements of the Consumer Movement. 10
A. Some of the achievements are -
Consumer Protection is being incorporated in the courses at different levels in schools and colleges. Full-fledged courses have been introduced in the management and law schools.
A number of large business organizations have set up Consumer Grievance Cells to redress the problems of consumers. Life Insurance Corporation of India (LIC) has set up claims review committees at the zonal and central levels. Petroleum Companies, Railways, Banks, Income Tax Departments, have also initiated setting up of public grievance cells. The Government of India has set up a separate Directorate called Directorate of Public Grievances in New Delhi. They deal with complaints relating to hawks, railways, insurance, pensions and related matters. In the long run, they will cover all the ministries. The nationalized banks are observing 15th of every month as the 'Customer Grievance Day’ where an aggrieved consumer can walk into the manager's offices in their respective town, district or zone. Federation of Indian Chambers of Commerce and Industry (FICCI) has set up a Consumer Business Forum which meets once a quarter in different cities of the country. All stock exchanges in the country have also set up similar cells. The Advertisement Standard Council of India (ASCI), Confederation of Indian Industry (CII) and FICCI have evolved a code of ethics for their activities.
Another significant achievement of the consumer movement has been the representation given to various consumer organizations on the policymaking bodies (regulator machinery) of governments. They are also given representation on the Advisory Welfare Committees of big business organizations and in the service sector. Central and State (Government) Consumer Protection Councils, regulatory departments of Preventions of Food Adulteration, Supplies of Food and Drugs, Weights and Measures Department, Quality Control Institutions like Bureau of Indian Standards (BIS) and AGMARK, Petroleum Product Department, Railway Commuters Welfare Committees, Regional Advisory Committees for Indian Airlines Services all have representatives of the various consumer organizations. Thus, consumers get full opportunity to participate in policymaking aspects.
Q. Trace the formation of the first Consumer League in the city of New York. 10
A. The first consumer league was formed in 1891 in the city of New York. Since this was a very limited effort, it did not grow into a full-fledged organization. Forty-five years later in 1936, the Consumers Union (CU) of the United States was formed. For many years, it was the only consumer organisation of its kind in the world. Consumer movement was induced by factors like the Great Depression and the Housewives' strike. A tragic case of cosmetic use that led to blindness made the American Consumers more conscious of their rights. This phase provided a sort of ideological background to the consumer movement. The origin of the consumer movement can be traced to back the literature of this period. They helped to broaden the grass-root support for a consumer movement. During the 1930s, there appeared many periodicals that were devoted to consumer problems. This phase of consumer movement was marked by the effective implementation of laws to protect consumer interest.
The Consumers Union's objective was to provide consumers with impartial information and advice on consumer goods and services. It covers all the matters concerning family expenditure; through the monthly magazine called "Consumer Reports." The headquarter of the CU was at Mount Vernon in New York. Colston Warne was its founder and president for 44 years. "Consumer Reports," the monthly magazine of Consumers Union proved to be a runaway success. By 1957 its circulation had reached nearly 800,000 copies. The magazine became an important means of spreading the concept of independent testing of goods. On the basis of test reports, they provided sound and unbiased information to consumers.
Q. Discuss the scope &growth of Consumer Movement in the modern period 20
A. Historically, the consumer movement has focussed to a large degree on rational behavior within the market system; often only the local market. The main aim was to educate people to obtain 'value for money' by purchasing goods based on informed choice. In today’s environment, consumer education is orienting societies
to consume products and services based on an ethical and environmental conscience. Producers and their products are no longer merely judged on quality, durability,
performance, price and after-sales services. More and more consumers now evaluate products and producers based on three additional criteria; i.e., Ethics, Ecology, and Equity.
Business enterprises, both government and private, are judged for their social responsibility by criteria such as
(a) respect for the environment
(b) sensitivity to cultural diversity
(c) public accountability through disclosure of information
(d) advancement of women's rights and position
(e) impact on local community-based industries and
(f) employment policies and a fair deal for workers including health and safety standards in the workplace.
Ecological or 'green' issues are particularly important and consumers use their power of not buying products that are likely to
(a) cause significant damage to the environment due to undesirable exploitation of natural resources,
(b) consume a disproportionate amount of energy during manufacture, use or disposal
(c) cause unnecessary waste either because of over packing or because of unduly short product life,
(d) use material derived from threatened species or from threatened environments
(e) involve the unnecessary use of or cruelty to animals, whether this is for toxicity testing or for other purposes and
(f) adversely affect other countries and communities, particularly in the Third World.
In protecting and promoting more sustainable and environmentally sound economic development through more responsible consumption patterns and lifestyles, consumer groups must aim at :
a) A qualitative change in the manufacture and supply of products and services in a way that will reduce environmental pollution, wastage of raw materials and utilization of energy.
b) A quantitative change in the consumption of certain products and services, which are considered exploitative, elitist and/or a waste of resources.
The consumer movement in India will have to address itself to the challenges posed by the process of economic liberalization and the subsequent opening up of the rural markets to high pressure advertising and merchandising by all-powerful MNCs. These bodies have the skills and the wherewithal to change age-old and healthy traditional patterns of consumption overnight. Economic liberalization may bring in a faster growth rate and an increase in the per capita income, but would perhaps not bring about a better life for the poor because of a discriminatory distribution built into the system. A vibrant consumer movement can throw up these contradictions in the system and create awareness among the well-to-do consumers so that they realize their social responsibility.
In a country like India, the consumer movement has to address various issues. These include fulfillment of the needs of the ~eo~lmea. i maintenance of standards and quality, threats to environment and issues arising with the arrival of foreign companies. India's socio-economic structure which is full of poverty, inequalities, vast population, shortages and illiteracy also poses many problems. Therefore, here both state and nongovernmental agencies have to work to offer consumer protection and maintenance of balance. In this, consumer education and the role of consumer organizations in creating suitable public opinion assume considerable significance.
In the emerging new world, issues of consumer protection are not only limited to choice, information or safety. Now, issues like the fulfillment of the needs of all, protection of the environment, use of media to create demands, competition between foreign and domestic companies, etc. have also become important. Therefore, the trend is changing from 'value for money' to 'value for people. New criteria are ethics, ecology, and equity. The consumer movement has to take note of these and work in the desired direction.
Q. What is meant by Consumer Movement? Discuss the history and growth of the consumer movement in India. 20
Q. Discuss the historical perspective of the Consumer movement in India. 10
A. The origin and growth of consumer movement in India have many similarities to the movements elsewhere although it was different from the circumstances in the west. In the 1960s, organisations such as the Consumer Guidance Society of India (Bombay) were formed to inform and educate consumers on the quality of goods and services and to conduct simple tests on goods of daily consumption. Shortages in the supply of essential commodities and the unsatisfactory functioning of the public distribution system (PDS) led activists to form consumer organizations in their towns and localities to ventilate their grievances to the authorities concerned. Several such organizations that were formed between 1970-1980 were primarily concerned with the problems of inflation, food adulteration, and the public distribution system. These organizations serve a very useful purpose as voluntary vigilance groups in the market place.
The third phase of growth of consumer movement covering the period from 1981 to 1990 signifies the expansion and consolidation of the consumer movement in India, especially after 1986. With the enactment of the Consumer Protection Act 1986, there has been a spurt in the number of new organizations in the country.
The period from 1991 to 2000 AD is being considered as a period that would empower the Indian consumer. The major programs include consumer education, product testing, product safety, promotion of eco-friendly labeled products and conservation as compared to the mindless consumption of goods.
The Consumer Movement today is undergoing a silent revolution. The movement is bringing qualitative and quantitative changes in the lives of people enabling them to organize themselves as an effective force to reckon with. As the concept of 'Green Consumerism' became widespread, consumer education today is orienting the societies to consume products and services that are based on an ethical and environmental conscienceless. Producers and their products are no longer merely judged on quality, durability, performance, price and after-sales services. More and more consumers now evaluate the products and producers based on three additional criteria; i.e., Ethics, Ecology, and Equity.
Today because of consumer movement the business enterprises, both government and private, are judged for their social responsibility by criteria such as
(a) respect for the environment
(b) sensitivity to cultural diversity
(c) public accountability through disclosure of information
(d) advancement of women's rights and position
(e) impact on local community-based industries and
(f) employment policies and a fair deal for workers including health and safety standards at the workplace.
The first stage of movement was more representational in nature, i.e., to make consumers aware of their rights through speeches and articles in newspapers and magazines and holding exhibitions. The second stage was direct action based on the boycotting of goods, picketing, and demonstration. However, direct action had its own limitations, which led to the third stage of professionally managed consumer organizations. From educational activities and handling complaints, it ventured into areas involving lobbying, litigation and laboratory testing. This gave good results. Thus, for instance, the business sector has started taking notice and co-operating with the movement. It has played an important role in hastening the process of passing the Consumer Protection Act, 1986 which has led to the fourth stage. The Act enshrines the consumer rights and provides for setting up of quasi-judicial authorities for redressal of consumer disputes. This act helps in providing justice in the socio-economic sphere to the common man.
Q. Discuss the problem's that consumer movements face in developing countries and suggest remedial measures of any, to overcome them. 10
A. Problems faced by Consumer Movements -
Consumerism in developing countries is shaped by two broad types of factors. On one hand, there are the relatively & indigenous characteristics of markets and consumers in these nations. On the other hand, developing nations import goods, the vision of the good life and Consumer policies from the more developed nations. In developing countries, the priorities of the consumer policy are generally the
reverse of those in developed countries. All developing countries severely lack in consumer protection measures. A large number of factors contribute to such situations. The market conditions are unfavourably skewed against the consumers. The lack of consumer movement is because of poverty, illiteracy, and ignorance. The dominant features of the market in developing countries affecting consumer interests are :
# Predominance of indigenous products which are of varying quality.
# Inadequate storage facility and transport problems, especially for perishables like food.
# Deliberate adulteration, black-marketing, shortage in weights and measures and inflation.
# Consumer apathy and absence of consumer grievance redressal mechanism
Remedial measures -
With such a background, just providing information will not serve the purpose; which is the case in developed countries. What is needed is a proper consumer education including information and knowledge about market processes, budgeting, decision-making, asserting consumer rights and accepting consumer responsibilities. There are external influences of consumerism in developing countries today. Imports and exports are increasing with liberalization and globalization, having both negative and positive effects. Unnecessary desires are created by the companies and agencies about the products. Thus consumer organizations have to play a significant role in making consumers aware of the marketing gimmicks.
The credit for initiating consumer movement in the Third World goes to C.I. (formerly known as IOCU) which by 1964 decided to broaden its vision beyond consumers in the West. Asia, Latin America, and the Caribbean were the first among Third World regions to invite its attention. Remarkably in 10 years, it encouraged organisations to come up in India, Iran, South Korea, Malaysia, Pakistan, and Singapore. C.I. set up a Regional Office for Asia and the Pacific in 1974.
Q. Changing trends in the consumer movement . 5
A The first stage of movement was more representational in nature, i.e., to make consumers aware of their rights through speeches and articles in newspapers and magazines and holding exhibitions. The second stage was direct action based on the boycotting of goods, picketing, and demonstration. However, direct action had its own limitations, which led to the third stage of professionally managed consumer organisations. From educational activities and handling complaints, it ventured into areas involving lobbying, litigation and laboratory testing. This gave good results. Thus, for instance, the business sector has started taking notice and co-operating with the movement. It has played an important role in hastening the process of passing the Consumer Protection Act, 1986 which has led to the fourth stage. The Act enshrines the consumer rights and provides for setting up of quasi-judicial authorities for redressal of consumer disputes. This act helps in providing justice in the socio-economic sphere to the common man.
Q. Describe how consumer Cooperative has helped consumer protection. 10
A. Consumer Co-operatives are sometimes mentioned as the starting point of the Consumer Movement. In general, consumer co-operatives have been successful in halting some of the abuses of the monopolies and in improving conditions of the
lower-income classes. They have undertaken consumer education, elementary product improvement and other projects of interest to members as well as to other low-income consumers. However, in contrast to activities to which the term 'Consumer Movement' has been applied, co-operatives have sought to perform certain services for themselves, thus replacing private enterprises in these areas. From the Third Five Year plan onwards, there has been much emphasis on the development of consumer co-operatives by the governments to make them viable. In 1975-76, Rs. 5.5 crores were invested for consumer co-operatives in accordance with the 20 point program. On the other hand, movement activities have been directed towards modification of business practices, either with or without the aid of government.
Consumer co-operatives are very important for improving the distribution of essential goods through the Public Distribution System (PDS) and combating inflation. It has been announced that 10 to 20% of the supplies of baby foods, bicycles, blades, cloth, and students' needs etc. would be through co-operatives. At present, in the
distribution of cosumer goods the co-operatives under P.D.S. account for about 28% of retail outlets (fair price shops) in rural areas. Nearly 51,000 village societies and their various branches distributed Rs. 2500 crores worth of consumer articles in rural areas in 1989-90. In general, co-operatives have been successful in halting abuses of the monopolies and improving conditions of the lower income groups.
