.· .. ,. ....· .~· .. .·~ ~ .... •.•. ....· 1 1.'_•. •.• .. ... . ,..,.· C O N T E N T S Foreword iii A few introductory words for teachers v Chapter 1 DEVELOPMENT 2 Chapter 2 SECTORS OF THE INDIAN ECONOMY 18 Chapter 3 MONEY AND CREDIT 38 Chapter 4 GLOBALISATION AND THE INDIAN ECONOMY 54 Chapter 5 CONSUMER RIGHTS 74 Suggested Readings 90 NOTES FOR THE TEACHER CHAPTER 5 : CONSUMER RIGHTS This chapter proposes to discuss the issue of understand the issues at a deeper level. Making consumer rights within the context of the ways posters collectively is another way to think about markets operate in our country. There are many these issues. This lesson contains activities, aspects of unequal situations in a market and which require visits – visit to consumer poor enforcement of rules and regulations. Hence, protection councils, consumer organisations, there is a need to sensitise learners and encourage consumer court, retail shops, market places, etc. them to participate in the consumer movement. Organise the visits to maximise learners’ This chapter provides case histories – how some experience. Have a discussion with them about consumers were exploited in a real life situation the purpose of the visit, things they need to do and how legal institutions helped consumers in beforehand and things that need to be collected getting compensated and in upholding their rights and the task (report/ project / article, etc.) they as consumers. The case histories would enable would carry out after the visit. As part of this the students to link these narratives to their life chapter, the learners may do letter-writing and experiences. We have to enable students to speaking activities. We may have to be sensitive understand that the awareness of being a well- to the language aspect of exercises. informed consumer arose out of consumer movement and active participation of people This chapter contains materials collected through their struggles over a long period. This from authenticated websites, books, newspapers chapter also provides details of a few and magazines. For example, http:// organisations helping consumers in different www.mca.gov.in is a website of Central ways. Finally it ends with some critical issues of Government Ministry of Consumer Affairs. the consumer movement in India. Another website www.cuts-international.org is the website of a consumer organisation working in Aspects of Teaching / Sources of Information India for more than 20 years. It publishes a variety of materials to create consumer This chapter has questions, case studies and awareness in India. They need to be shared activities. It would be preferred that students among learners so that they can also collect discuss these in groups orally. Some of these materials as part of their activities. For example, could be answered in writing individually. case histories were taken from newspaper While carrying out each activity you could clippings and consumers who fought in start with a brainstorming session about the consumer courts. Let learners collect and read activity. Similarly there are many opportunities such materials from different sources: consumer for role-play in this chapter and this could be a protection councils, consumer courts and useful way to share their experiences and internet. 7744 UUUUNNDDEEEERRSSSSTTAANNDDDDIINNGG EEEECCOONNNNOOMMIICCCC DDDDEEVVVVEELLOOPPMMEENNTT CHAPTER 5 CCCCOOOOONNNNSSSSUUUUMMMMEEEEERRRR RRRRIIIIGGGGHHHHTTTTTSSSSS The collage you see below contains what are the ways in which they can some news clippings of consumer exercise their rights as consumers to court verdicts. Why did the people go get a fair deal from the sellers when to the consumer court in these cases? they felt they had been denied a just These verdicts came about because treatment? some people persisted and struggled to get justice. In what ways were they denied justice? More importantly, THE CONSUMER IN THE MARKETPLACE We participate in the market both as Likewise, rules and regulations are producers and consumers. As required for the protection of the producers of goods and services we consumers in the marketplace. could be working in any of the sectors Individual consumers often find discussed earlier such as agriculture, themselves in a weak position. industry, or services. Consumers Whenever there is a complaint participate in the market when they regarding a good or service that had purchase goods and services that they been bought, the seller tries to shift need. These are the final goods that all the responsibility on to the buyer. people as consumers use. Their position usually is – “If you didn’t like what you bought, please In the preceding chapters we go elsewhere”. As if the seller has no discussed the need for rules and responsibility once a sale is regulations or steps that would completed! The consumer movement, promote development. These could be as we shall discuss later, is an effort for the protection of workers in the to change this situation. unorganised sector or to protect people from high interest rates Exploitation in the marketplace charged by moneylenders in the happens in various ways. For informal sector. Similarly, rules and example, sometimes traders indulge regulations are also required for in unfair trade practices such as when protecting the environment. shopkeepers weigh less than what they should or when traders add For example, moneylenders in the charges that were not mentioned informal sector that you read about before, or when adulterated/defective in Chapter 3 adopt various tricks to goods are sold. bind the borrower: they could make the producer sell the produce to them Markets do not work in a fair at a low rate in return for a timely loan; manner when producers are few and they could force a small farmer like powerful whereas consumers Swapna to sell her land to pay back purchase in small amounts and are the loan. Similarly, many people who scattered. This happens especially work in the unorganised sector have when large companies are producing to work at a low wage and accept these goods. These companies with conditions that are not fair and are huge wealth, power and reach can also often harmful to their health. To manipulate the market in various prevent such exploitation, we ways. At times false information is have talked of rules and regulations passed on through the media, and for their protection. There are other sources to attract consumers. organisations that have struggled For example, a company for years for long to ensure that these rules are sold powder milk for babies all over followed. THEY PURPOSELY MADE IT SO IT WOULD FALL APART AFTER A FEW MONTHS SO THAT I WILL BUY A NEW ONE! the world as the most scientific EVERYONE KNOWS product claiming this to be better TOBACCO KILLS PEOPLE, than mother’s milk. It took years of BUT WHO CAN SAY THAT TOBACCO COMPANIES struggle before the company was SHOULD NOT BE FREE forced to accept that it had been TO SELL TOBACCO? making false claims. Similarly, a long battle had to be fought with court cases to make cigarette- manufacturing companies accept that their product could cause cancer. Hence, there is a need for rules and regulations to ensure protection for consumers. LET’S WORK THESE OUT 1. What are the various ways by which people may be exploited in the market? 2. Think of one example from your experience where you thought that there was some ‘cheating’ in the market. Discuss in the classroom. 3. What do you think should be the role of government to protect consumers? CONSUMER MOVEMENT The consumer movement arose out quality of goods and services on the of dissatisfaction of the consumers sellers. as many unfair practices were being In India, the consumer movement indulged in by the sellers. There was as a ‘social force’ originated with the no legal system available to necessity of protecting and promoting consumers to protect them from the interests of consumers against exploitation in the marketplace. For unethical and unfair trade practices. a long time, when a consumer was Rampant food shortages, hoarding, not happy with a particular brand black marketing, adulteration of food product or shop, he or she generally and edible oil gave birth to the avoided buying that brand product, consumer movement in an organised form in the 1960s. Till the 1970s, or would stop purchasing from that consumer organisations were largely shop. It was presumed that it was engaged in writing articles and the responsibility of consumers to be holding exhibitions. They formed careful while buying a commodity consumer groups to look into the or service. It took many years for malpractices in ration shops and organisations in India, and around overcrowding in the road passenger the world, to create awareness transport. More recently, India amongst people. This has also witnessed an upsurge in the number shifted the responsibility of ensuring of consumer groups. CCONSSUMERR RRIGHHTTS 7777 Consumers International In 1985 United Nations adopted the UN Guidelines for Consumer Protection. This was a tool for nations to adopt measures to protect consumers and for consumer advocacy groups to press their governments to do so. At the international level, this has become the foundation for consumer movement. Today, Consumers International has become an umbrella body of 240 organisations from over 100 countries. Because of all these efforts, the movement succeeded in bringing pressure on business firms as well as government to correct business conduct which may be unfair and against the interests of consumers at large. A major step taken in 1986 by the Indian government was the enactment of the Consumer Protection Act 1986, popularly known as COPRA. You will learn more about COPRA later. LET’S WORK THESE OUT 1. What could have been the steps taken by consumer groups? 2. There may be rules and regulations but they are often not followed. Why? Discuss. CONSUMER RIGHTS SAFETY IS EVERYONE’S RIGHT RReeeejjjjii’’’’ssss SSSSuuffffeerrrriiiinngggg Reji’s suffering shows how a hospital, due to negligence by the Reji Mathew, a healthy boy studying in doctors and staff in giving Class IX, was admitted in a private clinic in anaesthesia, crippled a student for Kerala for removal of tonsils. An ENT life. While using many goods and surgeon performed the tonsillectomy services, we as consumers, have the operation under general anaesthesia. As a right to be protected against the result of improper anaesthesia Reji showed marketing of goods and delivery of symptoms of some brain abnormalities services that are hazardous to life and because of which he was crippled for life. property. Producers need to strictly His father filed a complaint in the State follow the required safety rules and Consumer Disputes Redressal Commission regulations. There are many goods claiming compensation of Rs 5,00,000 for and services that we purchase that medical negligence and deficiency, in require special attention to safety. For service. The State Commission, saying that example, pressure cookers have a the evidence was not sufficient dismissed safety valve which, if it is defective, can it. Reji’s father appealed again in the cause a serious accident. The National Consumer Disputes Redressal manufacturers of the safety valve have Commission located to ensure high quality. You also need in New Delhi. The public or government action to see National Commission that this quality is maintained. after looking into the However, we do find bad quality complaint, held the products in the market because the hospital responsible supervision of these rules is weak and for medical negligence the consumer movement is also not and directed it to pay strong enough. the compensation. LET’S WORK THESE OUT 1. For the following (you can add to the list) products/services discuss what safety rules should be observed by the producer? (a) LPG cyclinder (b) cinema theatre (c) circus (d) medicines (e) edible oil (f) marriage pandal (g) a high-rise building. 2. Find out any case of accident or negligence from people around you, where you think that the responsibility lay with the producer. Discuss. CCONSSUMERR RRIGHHTTS 7799 Information about goods and product and find it defective well services within the expiry period, we can ask for a replacement. If the expiry period When you buy any commodity, you was not printed, the manufacturer will find certain details given on the would blame the shopkeeper and will packing. These details are about not accept the responsibility. If people ingredients used, price, batch sell medicines that have expired number, date of manufacture, expiry severe action can be taken against date and the address of the them. Similarly, one can protest and manufacturer. When we buy complain if someone sells a good at medicines, on the packets, you might more than the printed price on the find ‘directions for proper use’ and packet. This is indicated by ‘MRP’ — information relating to side effects and maximum retail price. In fact risks associated with usage of that consumers can bargain with the seller medicine. When you buy garments, to sell at less than the MRP. you will find information on ‘instructions for washing’. In recent times, the right to information has been expanded to Why is it that rules have been made cover various services provided by the so that the manufacturer displays this information? It is because consumers Government. In October 2005, the Government of India enacted a law, have the right to be informed about the particulars of goods and services popularly known as RTI (Right to that they purchase. Consumers Information) Act, which ensures its can then complain and ask for citizens all the information about the compensation or replacement if the functions of government departments. product proves to be defective in any The effect of the RTI Act can be manner. For example, if we buy a understood from the following case. WWaaiittiinngggg...... Amritha, an engineering graduate after submitting all the certificates and attending the interview for a job in a government department, did not receive any news of the result. The officials also refused to comply with her queries. She therefore filed an application using the RTI Act saying that it was her right to know the result in a reasonable time so that she could plan her future. She soon got her call letter for appointment. 8800 UNNDERSTTAANDIING EECCONOOMIC DEEVELLOOPMENNT LET’S WORK THESE OUT 1. When we buy commodities we find that the price charged is sometimes higher or lower than the Maximum Retail Price printed on the pack. Discuss the possible reasons. Should consumer groups do something about this? 2. Pick up a few packaged goods that you want to buy and examine the information given. In what ways are they useful? Is there some information that you think should be given on those packaged goods but is not? Discuss. 3. People make complaints about the lack of civic amenities such as bad roads or poor water and health facilities but no one listens. Now the RTI Act gives you the power to question. Do you agree? Discuss. When choice is denied A RReefunndd Abirami, a student of choose. The Institute Ansari Nagar, joined a two- again appealed in the year course at a local State Consumer Com- coaching institute for mission. The State professional courses in Commission upheld the New Delhi. At the time of district court’s direction joining the course, she and further fined the paid the fees Rs 61,020 institute Rs 25,000 for a as lumpsum for the entire frivolous appeal. It also course of two years. directed the institute to However, she decided to opt out of the pay Rs 7000 as compensation and course at the end of one year as she litigation cost. found that the quality of teaching was The State Commission also restrained not up to the mark. When she asked all the educational and professional for a refund of the fee for one year, it institutions in the state from charging was denied to her. fees from students for the entire When she filed the case in the District duration of the course in advance and Consumer Court, the Court directed that too at one go. Any violation of this the Institute to refund Rs 28,000 order may invite penalties and saying that she had the right to imprisonment, the commission said. What do we understand from this if you buy a tooth brush. If you are incident? Any consumer who receives a not interested in buying the brush, service in whatever capacity, regardless your right to choice is denied. Similarly, of age, gender and nature of service, has sometimes gas supply dealers insist the right to choose whether to continue that you have to buy the stove from to receive the service. them when you take a new connection. Suppose you want to buy In this way many a times you are toothpaste, and the shop owner says forced to buy things that you may not that she can sell the toothpaste only wish to and you are left with no choice. CCONSSUMERR RRIGHHTTS 8811