Chapter 5 — Consumer Rights

Consumer exploitation occurs through unfair trade practices such as shopkeepers weighing less than they should, adding undisclosed charges, selling adulterated or defective goods, and making false claims through misleading advertising. For example, companies may falsely claim products are superior to mother's milk or hide the dangers of cigarettes. Large companies with huge wealth and market power can manipulate markets by passing false information through media to attract consumers. Weak supervision and enforcement make these practices common.

The consumer movement in India arose in the 1960s as an organised social force due to rampant food shortages, hoarding, black marketing, and adulteration of food and edible oils. Till the 1970s, consumer organisations mainly wrote articles and held exhibitions. They formed consumer groups to investigate malpractices in ration shops and overcrowding in transport. The movement succeeded in bringing pressure on businesses and government to correct unfair practices through the enactment of the Consumer Protection Act 1986 (COPRA).

COPRA is the Consumer Protection Act 1986, enacted by the Indian government as a major step to protect consumer interests. It was amended in 2019 to strengthen consumer protections further. COPRA applies to both goods and services and was expanded to include online purchases. Under COPRA, if there is service deficiency or a defective product, the service provider or manufacturer is held responsible and can be penalised or imprisoned. The Act establishes a three-tier consumer dispute redressal system.

The six consumer rights are: (1) Right to Safety—protection against hazardous goods and services; (2) Right to Information—access to details about ingredients, price, batch number, date of manufacture, expiry date, manufacturer address, and usage directions; (3) Right to Choice—freedom to select services and goods without forced bundling; (4) Right to Redressal—compensation based on degree of damage through consumer courts; (5) Right to Representation—consumers can file complaints with or without lawyers; (6) Right to Consumer Education—access to knowledge and skills to make informed purchasing decisions.

India has a three-tier quasi-judicial system set up under COPRA to redress consumer disputes: (1) District Consumer Disputes Redressal Commission—handles cases with claims up to Rs 1 crore; (2) State Consumer Disputes Redressal Commission—handles cases from Rs 1 crore to Rs 10 crore; (3) National Consumer Disputes Redressal Commission—handles claims exceeding Rs 10 crore. If dismissed at district level, consumers can appeal to state and then national commissions. Consumers can file complaints individually or as a group (class action suit) physically or through internet, and conduct proceedings via video conferencing. Recently, settlement through a neutral mediator outside the commission is also encouraged.

These are quality certification logos that help consumers purchase assured quality goods. ISI (Indian Standards Institute) certifies industrial products; Agmark certifies edible oils and cereals; Hallmark certifies jewellery. These organisations develop quality standards and allow producers to use their logos only if they follow specific quality standards. While not compulsory for all producers, these certifications are mandatory for products affecting consumer health and safety or products of mass consumption like LPG cylinders, food colours, additives, cement, and packaged drinking water. The logos provide consumers confidence about product quality and safety.

The Right to Information (RTI) Act 2005 was enacted by the Government of India to ensure citizens have access to information about the functions of government departments. RTI complements consumer rights by expanding the right to information beyond product details to include government transparency. For example, a job applicant can use RTI to obtain information about hiring results and timelines from government agencies. This empowers citizens to question government actions and ensures accountability in public institutions.

Consumers need product information to make informed purchasing decisions and seek redressal if products prove defective. Required information includes ingredients, price, batch number, date of manufacture, expiry date, manufacturer address, washing instructions (for garments), and usage directions or side effects (for medicines). If consumers buy a defective product within the expiry period, they can ask for replacement. If expiry dates are not printed, manufacturers try to shift blame to shopkeepers. Consumers can also complain if someone sells goods at more than the printed Maximum Retail Price (MRP), though they may bargain to pay less than MRP.

The right to choice means any consumer, regardless of age or gender, has the freedom to choose whether to continue receiving a service and which goods to purchase. This right is violated when sellers force bundling—for example, selling toothpaste only if you also buy a toothbrush, or insisting you buy a gas stove when taking a new connection. In a case from the source text, a student was denied the right to opt out of a coaching course without refund, forcing her to continue paying for a year when she wanted to leave after one year. The State Consumer Commission ordered the institute to refund the student and banned such practices.

Consumer protection councils and voluntary consumer organisations guide consumers on how to file cases in Consumer Disputes Redressal Commissions and represent individual consumers in these commissions. Residents' Welfare Associations take up unfair trade practice cases on behalf of their members. These voluntary organisations receive financial support from government to create consumer awareness. They conduct activities like monitoring shops and markets for malpractices. There are over 2000 consumer groups in India, though only about 50-60 are well-organised and recognised for their work. They play a critical role in educating consumers about their rights and helping them seek redressal.

The consumer redressal process is becoming cumbersome, expensive, and time-consuming, requiring many consumers to engage lawyers. Cases require substantial time for filing and attending commission proceedings. In most retail purchases, cash memos are not issued, making evidence difficult to gather. Most purchases are small retail sales where enforcement is weak. Consumer awareness in India is spreading slowly despite over 30 years since COPRA's enactment. Similarly, enforcement of laws protecting workers in the unorganised sector is weak, and rules and regulations for fair market functioning are often not followed. Effective consumer movements require voluntary effort and struggle involving active participation of consumers.

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