ACS -01

7th Part

Q  Discuss the salient features of the Bureau of Standards Act, 1986.        10

A  For the standardization, marking and quality certification of goods, the Bureau of Indian Standards Act, 1986 was enacted by the Parliament. Section 10 of the Act lays down the functions of the Bureau incorporated under the Act. The powers include - 

1) The power to establish, publish, and promote in such a manner as may be prescribed in relation to any article or process. 

2  The power to recognize any standard established by any other institution in India or elsewhere, in relation to any article or process

3  The power to recognize any institution in India or outside which is engaged in the standardization of any article or process or the improvement of the quality of any article or process;

4  The power to specify or recognize a Standard Mark to be called the Bureau of India Standards Certification Mark. 

5   The power to establish, maintain, and recognize laboratories for the purpose of standardization and quality control of an article or process or for some other purpose as may be prescribed.

6  The power to undertake research for the formation of Indian Standards in the interests of consumers and manufacturers.

7  The power to provide services to manufacturers and consumers of articles or processes on such terms and conditions as may be mutually agreed upon

8  The power to appoint agents in India or outside for the inspection, testing and such other purpose as may be prescribed

9  The power to make an inspection of any article or process, at such times and at such places as may be prescribed in relation to the standard Mark when such article is brought or intended to be brought into India from a place outside India; 

10  The power to coordinate activities of any manufacturer or association of manufacturers or consumers that are engaged in standardisation and in the improvement of the quality of any article or process or in the implementation of any quality control activities. 

11 The power to make an inspection and take the samples of any material or substance as may be necessary for relation to any article or process which has been given the Standard Mark, the objective is to see if it conforms to the Indian Standard or whether the Standard Mark has been improperly used in relation to any article or process with or without a license.

Section 11 of the Act prohibits improper-use of the Standard Mark. Section 33 provides for the penalty for improper use of Standard Mark.

Q  Sale of Goods Act, 1930 or The salient features of the sales of good Act, 1930       5

A  The Sale of Goods Act deals with the contracts of sale of goods. The Act was enacted to define and amend the law relating to the sale of goods. Section 14 to 17 of the Act contains the provisions that are designed to protect the interests of the buyers. They are given the right to avoid the transaction, besides the claim for damages, in case certain conditions are not satisfied by the seller according to the contract. Section 14(b) & 14(c) of the act contain the provisions whereby a buyer is entitled to claim damages in case the right of quiet possession of a buyer is distributed or the goods purchased turn out to be subject to a change. Besides, Sections 57 to 59 contains the provisions whereby a buyer can exercise certain rights for non-delivery of goods or for any other breach of the contract. These rights include a claim for damages, specific performance, etc. 

Q  Q  Features of the Weights and Measures Act, 1976           10

Q  Examine the objectives & importance of Standards of Weights and Measures Act 1976.     

A  The Parliament of India enacted the Standards of Weights and Measures Act, 1976 to replace the Standards of Weights and Measures Act, 1956 in order to modernize the system of weights and measures in the country. This act not only provides for the enforcement of the standards of weights and measures but also provides better protection to the consumer in terms of meteorological accuracy in commercial transactions, industrial measurements, and measurement that ensures public health and human safety. The main features of the Act are: 

1  The extension of legal control to cover meteorological accuracy in commercial transactions, industrial measurements, and measurements involved in ensuring public health and human safety.  

2  The creation of effective enforcement machinery in the states.  

3  The registration of users of weights and measures which are subject to periodical Verification.   

4  The regulation of the manufacture, repair, and sale of weights and measures. 

5  The regulation of sale and distribution of packed commodities in intra-state trade or commerce;  

6  The regulation of the sale of commodities which are sold by heaps; and

7  The punishment for offences that are committed against the legislation. 

Provisions in this act have been made for the appointment of Controllers, Inspectors and other officers and staff for exercising the powers  conferred or imposed on them under the Standards of Weights and Measures (Enforcement) Act.

 Section 16 of the Act states that no person shall use any weight or measure in any commercial transaction or for industrial measurement unless he is registered under the Act. Section 24 states that any person having any weight or measure in his possession, custody, or control that is intended or likely to be used by him shall firstly be verified by the Controller.

 The Act prohibits the use of non-standard weights and measures and provides for the penalty for the manufacture of non-standard weights and measures. A six month imprisonment or a fine of one thousand rupees or both can be given to an offender for using any weight or measure other than the standard weight or measure and for the second time subsequent offence, the imprisonment can be for a period of two years. 

Section 39 of the Act provides that the quantities and origin of various commodities in the packaged form are to be declared and on every package the name of the manufacturer, the packer or distributor is required to be inscribed. 

Q  Explain the salient features of the Agricultural Produce (Grading and Marking) Act, 1937.   5

A  With a view to providing for the grading and marking of agricultural and other products, the Agricultural Produce (Grading and Marking) Act, 1937 was enacted. The failure to provide standard agriculture goods of expected quality is an offence under Sections 488,489 of the Indian Penal Code. It is punishable with imprisonment up to three years or with fine or with both. In many cases, this also constitutes as an offence under Section 4 of this Act, which is punishable with imprisonment for a term not exceeding six months and fine not exceeding Rs. 5000/-. In the public interest or for the protection of consumers, the Central Government has been authorized under Section 58 of the act to declare compulsory grade designations in respect of certain agricultural products. By the newly added Section 5C, it has been provided that not only the central government or the state government or any officer authorised , but also a recognised consumer association, or the aggrieved person whether the person aggrieved is a member of that association or not, may make a complaint about taking cognizance of an offence which is punishable under the Act. 

Q  Explain the salient features of the prevention of Food Adulteration Act, 1954.     10

A  The Prevention of Food Adulteration Act, 1954 was passed by the Parliament to provide comprehensive legislation for preventing the adulteration of foodstuffs and check various kinds of nefarious acts connected with articles of food. Prior to this enactment, different states of India had their own laws for the prevention of food adulteration. Since these state laws were not adequate, the Parliament passed this Act of 1954. 

The Act provides for the establishment of a Central Committee for food standards and also for a Central Food Laboratory for testing of food articles. Import of certain articles of food has been prohibited and powers have been given to customs officers to seize any prohibited article of food that is being imported. Certain articles of food have also been prohibited, from being manufactured. Adulterated food is examined by public analysts and food inspectors who are appointed by the government to enforce the law. The manufacturers, distributors, and dealers of food need to give a warranty for the good quality and contents of food. Sellers have to disclose the name of the people from whom they have originally purchased the food. Instances of food poisoning are to be reported by medical practitioners to such officers as may be notified by state governments. Strict penalties have been imposed for violation of the law. Courts have been empowered to punish those found guilty, forfeit their property and also impose a heavy penalty. 

Central Food Laboratory

The Central Government will establish one or more Central Food Laboratories as per the provisions of this Act. Its functions include analyzing the samples of food and submitting certificates of analysis, inspecting, and fixing the standard of any article of food. 

Prohibition of Import of Certain Articles of Food

The Act prohibits the import of food articles into India which are adulterated, misbranded or any food article which is in violation of the conditions of the import license or any provision of the Act or Rules made thereunder. Powers have been given to customs officers to seize any prohibited article of food that is being imported. 

Food Inspectors

Both the Central Government and the State Governments have been empowered to appoint food inspectors. A medical officer who is in charge of the health administration of a local area can also be appointed as a food inspector. The duty of a food inspector is to inspect the premises, take samples for testing, carry out searches, ask for records or examine them. 

Food Poisoning Cases

Instances of food poisoning coming within the knowledge and jurisdiction of medical practitioners are to be reported to such officers as may be notified by state governments. 

Offenses and Penalties

Any person who is found guilty for importing or manufacture, sale, store or distribute any article of food which is adulterated, or in contravention of any provision of this Act shall be punished with imprisonment for a term up to 6 months which may extend to 3 years and fine of Rs.10000. 

Q  Discuss the important provisions of the Drugs and Cosmetics Act, 1940.

A.   To protect the consumers from the ill effects of adulterated, wrong medicines and harmful cosmetics, The Drugs and cosmetic Act 1940 were enacted. According to this Acts, the import, manufacture, sale, storage, and distribution of drugs and cosmetics which are not of standard quality or are misbranded, adulterated or spurious are prohibited as per the law. The provisions are setting up - 

The Drug Technical Advisory Board

The Board has been set up by the Central Government to advise it and the State Governments on technical matters related to the administration of this Act and for carrying out other functions laid down under this Act. 

Central Drugs Laboratory

This is established by the Central Government and it is under the control of a Director to carry out functions laid down under the Act. Its functions include analysis or testing of various samples of drugs and cosmetics etc.

The Drugs Consultative Committee

This has been constituted by the Central Government as an advisory committee to advise the Central, State Governments, and the Board on any matter related to the administration of this Act. It has representatives of the Central & State Governments. 

A Cosmetic shall be deemed to be misbranded if it contains a color that is not of standard quality. A Cosmetic can be deemed as spurious for the same reasons as specified for a drug. 

The Central Government has the power to prohibit the import of drugs or cosmetics which are not of standard quality or are misbranded, adulterated or spurious or which are in violation of the conditions of the import license or in which the contents are not disclosed or which has harmful ingredients. Customs officials can seize any drug or cosmetics which is prohibited from being imported. Any person involved in imports any prohibited drug or cosmetic shall be punished under the law. 

Manufacture, Sale, and Distribution of Drugs and Cosmetics

No person shall himself or through his agent manufacture for sale, distribute, sell or stock or exhibit or offer for sale drugs & cosmetics which are not of standard quality, or misbranded,

adulterated or spurious or in contravention of the provisions of the Act. Both the Central Government & the State Governments can appoint inspectors under the Act. The inspector can inspect premises, take samples, carry out searches, ask for records or examine them.

Ayurvedic, Siddha and Unani Drugs

Similar but separate provisions have been made in this Act for these drugs. There is a separate Technical Advisory Board, Consultative Committee. As per the law, the manufacture and sale of Ayurvedic, Sidha, and Unani drugs which may not be of the requisite standard quality, or are adulterated, misbranded or spurious are prohibited.

Penalty -

The Penalty for manufacture, sale, distribution, etc. of adulterated, spurious drugs and cosmetics could lead to imprisonment from three years to life and fine up-to Rs.10,000/-. It can’t be considered as defence for the accused to say that he was ignorant about nature, quality of the drug, or cosmetic or that the purchaser or user was not prejudiced by the sale. Thus, the Drugs and Cosmetics Act, 1940 seeks to secure the rights of the consumer of drugs and cosmetics.

Q.    Discuss in detail the remedies available for negligence in ‘Banking Service’.

A.    The bankers are professionals, who undertake to pay on consumer's cheques to the extent of money available in their credit balance. The failure to do so is called negligence on part of banks and make them liable to pay for damages. The banks are liable to pay for damages for any kind of forgery related to the cheque committed by third persons. If the signatures of the customer on the cheque are not genuine, there is no mandate on the bank to pay. A bank which makes a payment on a forged cheque, cannot make the customer liable except on the ground of negligence committed by the consumer. In such a case, blaming the customer of negligence, such as leaving off the cheque-book carelessly so that a third party can easily get hold of it, can not be considered as a defence to the bank. Similarly, if a bank fails to carry out the instructions of a customer, it will be liable for negligence.

There are two laws enacted to safeguard the interests of customers of banking services they are -

1)   The Usurious Loans Act, 1918 - 

            Section 1 of the Money Lenders Act, 1900 empowers the courts to reopen transactions of money or loans, in cases where the Court is satisfied

(1) that the interest or other return is excessive and

(2)  that the transaction is substantially unfair, 

and after investigation of the circumstances, the court can direct both the attendant and antecedent to revise the transactions between the parties. If necessary it can ask them to reduce the amount payable to such amount, as the Court after understanding the risk and all the circumstances of the case, may decide to be reasonable. Section 3 of the Act provides for the re-opening of certain transactions.

2)  The Banking Ombudsman scheme, 1995 -   

The main objective of the scheme is to enable the resolution of complaints related to the banking services and to facilitate the settlement of such complaints. Under this scheme, the Reserve Bank of India has to appoint one or more persons to be known as the Banking Ombudsman to carry out the functions entrusted upon them under the Scheme.

Procedure for redressal of grievance: Clause 16 of the Scheme provides that any person having a grievance against a bank, may himself or through an authorized representative Can make a complaint in writing to the Banking Ombudsman under whose jurisdiction the branch or office of the bank, against whom the complaint has been made is located.

Under Clause 17 of the Scheme, the Banking Ombudsman can ask the Bank to provide any information or furnish certified copies of any document related to the subject matter of the complaint which is or is alleged to be in possession of the bank.

Under clause 18 of the Scheme, it is the duty of the Banking Ombudsman to promote a settlement through agreement between the complainant and the bank by means of conciliation or mediation. For this purpose, the Banking Ombudsman may follow any procedure as considered appropriate and is not bound by any rule of evidence. 

Recommendation for settlement:- If a complaint is not settled by agreement within a period of one month from the date of receipt of the complaint or any further period considered necessary by the Banking Ombudsman, then under Clause 19 of the Scheme, he may make a recommendation which according to him is fair under the circumstances. Such a recommendation is binding upon the complainant if he accepts all terms of recommendation as a full and final settlement of the complaint. The recommendations so accepted by the complainant shall be binding on the bank, if acceptable to it.

Award by the Banking Ombudsman - Where the complaint is not settled by agreement or recommendations, the Banking Ombudsman, under Clause 20 of the Scheme, shall inform the parties of his intention to pass an Award. The parties may submit any further representation or evidence in support of their claim. The Banking Ombudsman shall pass an Award after giving sufficient time to the parties and chance to present their case.

No complaint to the Banking Ombudsman can be made unless - 

a)   The complainant before making a complaint to the Banking Ombudsman has made a written representation about his grievance to the bank and either the bank had rejected the complaint or the complainant had not received any reply within a period of two months from the date of making his representation or the complainant is not satisfied with the reply of the Bank.

b)  The complaint is made not later than one year after the bank had rejected the representation or sent its final reply to the representation of the complainant.

c)  The complaint is not in respect of the same subject matter which was settled through the office of the Banking Ombudsman in any previous proceedings whether received from the same complainant or any one of the parties concerned with the same subject matter.

d)  The complaint is not the same subject matter, for which any proceedings before any court, tribunal or arbitrator or any other forum is pending or order of dismissal had already been passed by any such court, tribunal, arbitrator or forum.

e)  The complaint is not frivolous or vexatious in nature.

Q  Remedy for negligence against Railways                     10

A  Railways as a common carrier is an insurer of goods that is under its charge and is responsible for their safe transport and delivery. Therefore in case of loss or damage to the goods, it is liable even when there is no negligence on its part. A railway is duty-bound to take care of passengers and carry them safely to their respective destinations. It is the responsibility of railways to provide good coaches which are required for safe transportation of passengers and also competent drivers. The railway is liable for any loss or damage caused to passengers by its negligence during the journey. 

General Liability of Railways Towards Passengers in Accident Cases -

Under section 124 of the Railways Act, 1989 the extent of liability of the railways is as follows :

While during the course of the journey in a railway if an accident occurs, either due to a collision between trains or the derailment, whether or not there has been any wrongful act, neglect, or default on the part of the railway administration, the passenger is entitled to receive compensation. A passenger who has been injured or has suffered a loss or damaged his goods is entitled to recover damages. 

1) An application for compensation under Section 124 may be made to the Claims Tribunal:

a) by the person who has sustained an injury or suffered any loss during the journey, or

b) by any agent duly authorized by such a person on his behalf, or

c) where such person is a minor, then by his guardian, or '

d) where death has resulted because of the accident, then by any defendant of the deceased or where such a defendant is a minor, then by his guardian.

2) Every application by a defendant for compensation under this section shall be for the benefit of every other defendant.

3)  Provisions have been made under Section 126 to give interim relief to the affected by the railway administration.

Notice of Claim for Compensation and Refund :

Section 106 of the Railways Act, 1989 provides:

1) A person shall not be entitled to claim compensation against a railway administration for the loss, destruction, damage, deterioration or non-delivery of goods carried by railway unless a notice thereof is served by him or on his behalf:

a) To the railway administration which was entrusted with goods for carriage; or

b) To the railway administration on whose destination the station lies.

Q  What are the remedies available to the consumers for negligence committed by medical professionals? Discuss. 10

A  It is important to understand what constitutes medical negligence. A doctor owes certain duties to the patient who consults him for illness. A deficiency in this duty on the part of the doctor can be called negligence. The diagnosis of a disease is normally the first matter with which the medical man is concerned. But it must be remembered that a mistaken diagnosis does not necessarily mean negligent diagnosis. A doctor can only be held liable for negligence in this regard if his diagnosis is so palpably wrong that there is no doubt that it is a blatant case of negligence. That means his mistake is of such grievous nature which implies an absence of reasonable skill and cares on his part. 

To initiate action for negligence against a doctor, the plaintiff has to prove :

(1) that the plaintiff was under the care of a doctor and the accused doctor was duty-bound to take care of the plaintiff to avoid the damage complained of,

2) that there was a breach of duty on the part of the defendant doctor and 

3) that the breach of duty was the real cause of the damage complained of and such damage was avoidable and reasonably foreseeable.     

The legal action that can be taken against a medical practitioner for medical negligence can broadly be put into three categories:-  

(i) Criminal liability, 

(ii) monetary liability, and 

(iii) disciplinary action.

Criminal liability - Section 304A of IPC can be applied in case of medical negligence, where it has resulted in the death of the patient. It may lead to imprisonment for a period of up to 2 years. Similarly, other general provisions of IPC, such as Section 337 (causing hurt) and 338 (causing grievous hurt), are also often deployed in relation to medical negligence cases.

Civil liability - monetary compensation can be given to the patient or his defendant under the general law by appropriate civil court or consumer forums. 

Disciplinary Action - Another consequence of medical negligence could be in the form of imposition of penalties, suspension of a license pursuant to disciplinary action.

Q. Define the terms 'defect' & 'deficiency' under the Consumer Protection Act, 1986 with the help of decided case laws.     20

A  Defect: Under the CPAct, the word 'defect' means any fault, imperfections or shortcoming in the quality, quantity, potency, purity, and standard of an article that is required to be maintained under any law for the time being in force or under any contract by the trader in relation to any goods.

Case law For Defect -

A ration shop supplied a ration card holder rapeseed oil which was adulterated with the known toxic adulterants. The complainant, and his family, as a result of that rapeseed oil consumption, suffered severely. As a consequence of consuming adulterated oil, the complainant was attacked with paralysis of lower limbs, and in spite of prolonged treatment, he did not recover fully. His wife, in spite of medical treatment, was not able to carry on her ordinary duties as a housewife effectively because of ailment. His two daughters and a son, who were growing children were also affected because of the consuming adulterated oil, and according to the medical reports, their bodies had suffered severely. Their educational carrier was doomed. Considering all these facts, the Commission awarded a sum of Rs. 1,50,000/- to the complainant and Rs. 50,000/- for his wife and Rs. 25,000/- to each of the children resulting in awarding of a total of Rs. 2,75,000/- (Barsad Ali vs. Managing Director, West Bengal Essential Commodities Supplies Corp. 1993)

Deficiency: Under CPA, whereas the 'defect' was related to goods, the 'deficiency' is used in relation to services. It means any fault, imperfections or shortcomings in the quality, quantity, potency, purity or standard which is required to be maintained under any law for the time being in force or has been undertaken to be performed by a person in relation to any service.  

      Case law for the deficiency -

Maina Devi Bairalia v. Life Insurance Corporation of India (decided by the National Commission,1993). In this case, Maina Devi's husband took a life insurance policy for Rs. 50,000. Before the second premium can be paid, he died due to sudden illness. The claim made by Smt. Maina Devi, the widow of the insured, was not entertained for as long as 14 years. It was only when she got her miseries published in newspapers and certain MPs took up the matter in Parliament that she was sent a cheque for Rs. 50,310. On a suit before National Commission, it was held that the Corporation had been highly negligent in the performance of its services. Smt. Maina Devi, the complainant, had suffered hardship and loss on account of deficiency in service by LIC. She was held entitled to receive compensation in the form of interest at 12 % p.a. on the original amount from the date of expiry of 3 months from the date of death of the insured till the amount was paid to her. The Commission also awarded her compensation Rs. 15,000 for mental torture and harassment at the hands of Corporation.

Another case - In Lucknow Development Authority v. Roop Kishore Tandon (1990), the failure on the part of a Housing Board to give possession of the flat to the complainant even after payment of the full amount and after registration of the flat in favor of the allottee. It was held to be a deficiency in service on the part of LDA.

Q.  State if the following are consumers under the Consumer Protection Act, 1986 :  

(a) The purchaser of a sewing machine for earning her livelihood.  

(b) passengers traveling by train.   

A  (a) Purchaser of a sewing machine for earning her livelihood - 

 b) passengers traveling by train - In General Manager, Southern Railway v. Anand Prasad Sinha (1989), it was held that passengers traveling by trains m payment of the stipulated fee charged for the ticket are consumers' and the facility of transportation by rail provided by the railway administration is a 'service' rendered for consideration as defined in the Act. 

Q. Discuss briefly various 'Services' covered under the Consumer Protection Act,1986.    10

A  Section 2 (1) (0) provides that Service means service of any description which is made

available to potential users and includes the provision of facilities in connection with banking, financing, insurance, transport, processing, the supply of electrical or other energy, boarding or

lodging or both, housing construction, entertainment, amusement or the purveying of news or other information, but does not include the rendering of any service free of charge or under a contract of personal service.

Government Hospitals not under services - complaints

against government hospitals cannot be entertained under the Act on the ground that person receiving treatment in such hospitals is not a consumer as the patient does not hire the services of the hospital; moreover, the treatment provided is free of charge, and therefore, it does not amount to 'service'. It further observed that this was their interpretation within the scope of the Act and if the Legislature intended otherwise, the Act ought to be amended suitably. However, service rendered by doctors in private hospitals for consideration would come under the purview of service (Cosmopolitan Hospitals v. Smt. Vasantha P. Nair 1992. 

Q  What is your opinion are the three most important features of the Consumer Protection Act, 1986.

A  The three most important features of the Consumer Protection Act, 1986 are:

a) This is the first legislation of its kind in as much as it provides for reliefs against different kinds of exploitation including defective goods, unsatisfactory or deficient services, restrictive and unfair practices.

b) The Act provides for speedy and inexpensive redressal of grievances through three-tier machinery at the District, State, and National level. It is an Act that also provides for an inexpensive method of seeking relief. No court fee or any other charge is to be paid. Moreover, the consumer can argue his own case. Engaging an advocate is not necessary.

c) This Act gives statutory recognition to the right of consumers.  

Q  State, if the following are the consumers under the Consumer Protection Act, 1986:

i) Purchase of a sewing machine for earning her livelihood.

ii) A person registered for gas-connection but before allotment of the same.

iii) User of electricity

A  i) Yes..The purchase of a sewing machine for earning a livelihood is not a purchase for commercial purposes.

ii) Yes. See Mahindra Gas Enterprises v. Jagdish Poswal (1992).

iii) Yes. Refer to the National Commission decision in Y.N. Gupta v. DESU (1992).

Q  Are the following 'goods' under the Consumer Protection Act, 1986:

i) Growing crops

ii) Shares before allotment

A  i) Yes. See the definition of 'goods'.

ii) Yes. See decision of the Supreme Court in Morgan Stanley Mutual Fund v. Kartick

Das (1994)

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.

ACS- 01

5th Part

Caveat Emptor - Let the buyer beware continued to be the governing rule. The helpless and harassed consumer did not really get effective remedies. Consumers remained the king only in the literature on economics. The seller/manufacturer/supplier continued to roll the roost.

Q.  Consumers should not only seek rights but also behave as responsible consumers. Do you agree? State the duties of consumers.

Q  DUTIES OF CONSUMERS AS A COROLLARY TO CONSUMERS' RIGHT

A.  In social life rights and duties are the two sides of the same coin. Consumer duties are :

i) they should check properly the quality and prices before purchasing the goods or hiring the services.

ii) they should be aware about the existing consumer protection laws and law enforcing machinery.

iii) they should have the courage to protest against the exploitation and seek redressal of grievances.

The first duty of the consumer is to himself which means the enforcement of his own rights. For instance, for meaningful enforcement of rights to safety, it is our duty to buy only quality certified goods, particularly where safety is of primary importance, for example, in case of road safety one should purchase only ISI marked helmets. Similarly, in terms of electric /electronic items, only ISI marked equipment should be purchased. Likewise for eatables, particularly, spices, oils, ghee, atta, etc. our duty is to buy packed foods with only quality certification such as AGMARK. The AGMARK products ensure the following four rights to the consumers -

(I) the right to safety; (2) the right to be informed (3) the right to choose, and (4) the right to be heard. It is also our duty to check correct weights and measures, dates of manufacture and expiry, pricing and ingredient labeling, the inclusion of quality marks (ISI, Agmark, Eco-mark), batch number, Warranties, and guarantees, etc., before making a purchase of packed items.     

Two duties towards others and the environment. These can be called our social and ecological responsibility. This means as a responsible consumer one should be aware of the implications of his right to choice and he is answerable to fellow consumers and to the environment for his buying decisions. 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.

Pollution, exhaustion of resources, and energy and dumping of toxic wastes all over the planet are some of the problems associated with irresponsible consumption. Purchase of a sub-standard vehicle emitting too much smoke affects others' right fur healthy environment. Bulk purchase or hoarding of goods which are in short supply affects other consumers' rights to availability and fair price, etc. Therefore it is important to understand that the choices we make as consumers affect others and in particular the environment.

Q.  Discuss some of the limitations in the Consumer Protection Act. 1986.

A.  1.  the Act should be suitably amended to include free medical and municipal services provided by the government. A victim of medical negligence in a government hospital should be entitled to compensation by enlarging the definition of consumer and bringing free services provided to the public by the government.

2. The Consumer redressal Fora should be vested with powers to issue interim injunctions restraining a person from carrying on any unfair trade practice as defined in Act.

3.  The Consumer Redressal Fora should be empowered to take up the cases suo motu.

4.  In case the unfair trade practice about which a complaint has been made; and about which the consumer Redressal Forum has given relief to the complainant, then if Forum is of the opinion that the alleged unfair trade practice is against the public interest, it should be empowered to pass an order that the practice shall be discontinued and shall not be repeated. This is commonly called 'cease and desist' ordered.

5.  It is absolutely essential to ensure the quality and competence of non-judicial members who are selected to work on the Benches of Consumer redressal agencies. Moreover, the anomaly in emoluments should be rectified.

6.  The consumer redressal agencies should be equipped with the personnel for execution of their orders, and in this way, the necessity of depending on Civil or Criminal Courts would be obviated.

7.  There is a need to provide the essential infrastructure to the District Forums and State Commissions so that they can function effectively.

8.  The presence of lawyers should be permitted only where the complainant engages a lawyer which will justify the engagement of the lawyer by the respondent.

9.  A procedure must be established which makes it necessary for the court to immediately give a copy of the order to the parties so that no excuse is given for the delay in submission of appeals.

10.  Consumers should be allowed to lodge complaints with the Consumer Forums even

where an alternative remedy is available under another enactment.

11.  The Act should be modified to recognise a very important right of consumers viz. the right to a healthy environment.

12.  The Act should be amended to make the six rights of consumers justiciable.

13.  The Act should be amended to empower Consumer Courts to publish the names of manufacturers, traders, and dealers whose goods are found to be hazardous to public safety. This empowerment would work as a deterrent to the erring business community.

14.  The Act should be amended as to streamline the procedure that would facilitate quick disposal of consumer cases.

15.  The act should be amended so that liability can be imposed on the chief executive, manager, or director where an offense is shown to have been committed.

16.  The Act should be amended providing that the consumer forums shall not order dismissal of a complaint merely on the ground that the complaint is of a complex nature and that it should be filed before a Civil Court of competent jurisdiction.

Q.  Consumers remain exploited in spite of the various rights conferred upon them under the Consumer Protection Act, 1986. Do you agree? Give reasons for your answers.

A.          

   1. Lack of Awareness

There is an utter lack of awareness about rights among the consumers. An only limited number of knowledgeable consumers exercise their rights. The ignorance of the consumers especially in rural areas is largely responsible for their exploitation at the market place. Consumer justice through consumer legislation and enforcement is only possible if there is consumer awareness. Therefore, there is a need for spreading consumer awareness among various sections of society, particularly the illiterates. CPA itself provides for consumer education therefore it becomes the responsibility of the state to impart consumer education among the masses. These efforts need to be strengthened by voluntary organizations, media, informed citizens, teachers, students, and journalists in particular.

2) Responsibilities

Apart from lack of awareness, there is also a lack of sense of responsibility among the consumers. The responsibility is of two types. the first and foremost responsibility of the Consumers is to oneself. This means that he should ensure value for his money spent on the purchase of goods or services. Simultaneously, it becomes his individual responsibility to make other people aware of their rights and responsibilities. None of his 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 for getting short term pleasure or profit. The second responsibility is towards the environment.

i) ignorance of the law,

ii) corruptions in the law enforcing machinery

iii) lengthy legal process

Q.  What is meant by consumer responsibility? Discuss.         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.

 The components of a consumer's responsibility include:

-  one who recognizes his power & ability to control his consumption practices or habits.

-  one who creates an environment-friendly lifestyle.

-  one who is accountable for his actions and purchase decisions

-  a consumer with capacity for rational thinking

-  Being a watchdog over the activities of the industries and businesses

-  one who demands the goods of standard quality.

Citizen as Responsible Consumer 

As a responsible consumer, the area of his activity expands to include not only what he can carry from the market to his home for personal use, but what he can give in return to society and to the environment. This involves not only action but also the decision not to act in a certain established or acceptable manner. For example, as a user of market commodities, the consumer takes partial responsibility for garbage disposal.

       The dimension of consumer responsibility is - 

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), Warranties and guarantees, etc., before making a purchase. This is the first dimension of the consumer's responsibility as a citizen.

The second dimension of consumer responsibility is towards the environment which is global and thus makes him a citizen of the world. 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.

Ethical Consumer 

The ethical consumer buys and invests appropriately and ethically. Price and profits are not the only priority for him. The ethical behavior means one who takes the right decision in most situations for most of the people. An Ethical Consumer is also a green consumer, the one who cares for the environment. 

Q   Explain the three phases of Consumer Responsibility.       10

A.  The three phases of Consumer responsibility are as follows.

Initially, the consumer was supposed to be concerned only with value for money, information, and production of consumer goods. In the second phase, the aware consumer challenged the large corporations and their marketing strategies and advocated consumer cause. In the third and the current phase, the consumer is expected to be aware of the environmental implications of each product on the market shelf and be aware of his/her duties and responsibilities as a consumer and as a citizen.

      Currently, the crucial area of concern is the question of consumer priority. In other words, this means what the consumer should look for: Whether to purchase cheaper and more easily available products or to look out for fair trade practices, environmental costs, and public health.

     Citizen as Consumer 

A person's range of activities and interactions extends from his/her home to the market place as a consumer. But as a citizen, the area of his/her activity expands to encompass not only what he/she can carry from the market to his/her home for personal use, but what he/she can give in return to society and to the environment. This involves not only action but also the decision not to act in a certain established or acceptable manner. For example, as Consumer Responsibilities a user of market commodities he/she takes partial responsibility for garbage disposal.

       The following are some of the areas where consumer intervention can influence the market to act responsibly towards the consumer. For that 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), Warranties, and guarantees, etc., before making a purchase. This is the first dimension of the consumer's responsibility as a citizen. His/Her other dimension of responsibility is to the environment which is global and thus makes him/her a citizen of the world. This awareness of environmental issues determines the choice of products which provides a negative environmental impact. For example use of Chloro fluoro Carbon (CFC) - free air- conditioners and refrigerators. It also involves a conscious rejection of non-biodegradable packaging, and minimal use of chemicals at home.

Ethical Consumer 

The ethical consumer buys and invests appropriately and ethically. Price is not the only priority for he/her; ethical behavior means one is doing what is right and good in most situations for most people. An Ethical Consumer is also a green consumer. The evolution of a consumer into a green consumer means that the consumer exercises He/her vote, not only in favor of market responses to his needs but also the individual's responsibility towards the environment.

Q.  Discuss the role of Consumer Responsibility towards society. 

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. In fulfilling his responsibility the consumer tries to make a conscious effort in improving the quality of life both of himself as well as the other people in the society. Consumer responsibility also includes the empowerment of the disadvantaged sections of the society. It also includes behaving as a watchdog to the activities of the industry.

       The need for consumer responsibility has come at a time when consumerism has created a chasm or division in society making the consumer into a passive person. The market too has reduced the capacity of the consumer to choose. The companies use advertisement as a medium to pretend that they will take care of all the needs of the consumers. In doing so, only new needs were created. Many times, artificial needs were also developed.

       The consumer should be aware that the target of the market is his/her pocket, earnings, and savings. Hence, the first and foremost responsibility of the Consumers is to oneself. This means that he should ensure value for his money spent on the purchase of goods or services. Simultaneously, it becomes his individual responsibility to make other people aware of their rights and responsibilities. None of his 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 for getting short term pleasure or profit.

       Consumer's responsibility towards society is fulfilled only when he assumed responsibility as an aware and alert citizen. 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.