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More power to consumer (31-12-2006)

Consumer activism: We have one of the best laws in the Consumer Protection Act

The last two decades have seen a metamorphosis of the Indian consumer-from a passive, apathetic being to a demanding, aggressive entity. Two very significant developments have brought about this spectacular attitudinal shift: the introduction of a path-breaking consumer protection law in 1986 and the opening up of the economy in 1991.
The consumer courts have so far registered 2.7 million complaints. These include complaints against defective goods, deficient services, unfair trade practices and even restrictive trade practices. But the cases against insurance companies form the biggest chunk.
Consumer activism has not been confined to litigation. In the last decade or so, consumers have been effectively using dharnas, road blockades and spontaneous protest demonstrations to register their dissatisfaction with poor services.
More recently, consumers have even begun to use boycott as a weapon, something unheard of earlier. And they are using the latest means of communication such as e-mails and SMSes to consolidate such protests. Last year, consumers in Bangalore boycotted petrol pumps for a day to express their anger over frequent petrol price hikes. And they used SMSes to spread the word. In 2003 and 2006, there were consumer boycotts of colas in response to the reports of the Centre for Science and Environment on pesticide residues in these drinks.
Prior to 1986, consumers would hesitate to take on large corporations and multinationals. But consumer law changed all that. Take for example, the consumer who filed a case against Reliance India Mobile for its failure to shift his telephone from Chandigarh to Kurukshetra. Or the consumer group that took on United Breweries for surrogate advertising.
Public sector undertakings, too, came under fire for deficient services and high-handed behaviour. A senior citizen, for example, took the biggest public sector undertaking to the consumer court, protesting harassment by a Railway employee. The consumer court awarded exemplary damages to the tune of Rs 25,000 (transfer petition no. 49 of 2004). Farmers, too, made use of the law to file class action suits against seed companies that sold substandard seeds, resulting in poor yields.

Pumped up by their newfound power, consumers even challenged strikes by employees of public sector service providers and demanded consequential damages. The apex consumer court turned it down, but said that where such strikes were illegal, consumers could get compensation for the inconvenience and harassment caused to them (Common Cause vs Union of India and others, OP no. 153 of 1993).
But the toughest battle that consumers fought was on the issue of medical negligence. In the absence of a law codifying the rights of patients in the country, it was not easy to take on doctors, particularly when they withheld medical records, thereby preventing consumers from going to court. But today, consumer court orders have made sure that hospitals and doctors recognise and respect the rights of patients. A recent order of the apex consumer court has held that even turning away a patient (for want of a bed) without providing emergency treatment constitutes negligence (Medical Officer, ESI Hospital v. Shri Ranjit Kumar Das, FA no. 313 of 1997).
The Consumer Protection Act (CPA) also promoted the growth of consumer groups in the country. Prior to 1986 there were just about 60 consumer groups; post CPA, the number jumped to 600 and today, India boasts over 2,000 consumer groups. And their work is as varied as their geographic spread. Whether it is comparative testing of products, campaigns against tobacco and genetically modified foods or international trade and competition issues, Indian consumer groups have made their presence felt not just on local and national forums, but also on international platforms.
The process of economic liberalisation set in motion by the government in 1991 saw the end of state monopoly in sectors like civil aviation, insurance, telecommunication and banking, and Indian consumers found themselves enjoying more choices, better quality and reduced tariffs. Nowhere was this more apparent than in the civil aviation sector where fierce competition and the entry of low-cost, no-frill airlines brought down air fares to such an extent that the Railways was forced to lower its upper class fares this year and even come up with promotional offers to attract passengers! Beginning 1999, the telecom sector, too, saw tariff rationalisation and phenomenal lowering of landline, mobile and Internet tariffs.
Regulators and competition certainly made a world of difference, but consumers soon discovered that there was no substitute for consumer activism to curb unfair trade practices and deficient services. This prompted specialisation within the existing consumer groups. It also led to the birth of sector-specific groups dealing with services such as telecom, banking, power and insurance.
From funding consumer groups to starting a toll-free national consumer helpline (1800-11-4000) and hosting a Web site (www.core.nic.in), the Union ministry of consumer affairs has been a constant source of encouragement to consumer groups. All these developments have obviously got the trade and industry worried. Proof of this is in their recent offer to set up a dedicated centre for resolution of consumer complaints and promotion of responsible business practices.
All this does not mean that consumer activism has reached its pinnacle or that consumer sovereignty has been established in India. Far from it. We have one of the best laws in the Consumer Protection Act, but the functioning of the consumer courts is far from perfect. We have over two dozen laws aimed at protecting consumer interest, but their implementation is highly unsatisfactory. And we need new laws to tackle newer problems, particularly in the financial services sector. Consumer safety-be it in food and drugs, services or manufacturing-has not received the kind of attention that it should. There is still a very large percentage of disadvantaged consumers whose basic needs like safe drinking water, power supply and health services have not been met. Most consumer groups are urban-based and much work needs to be done in rural areas.
But compared with the scenario a quarter century ago, we have come a long way. Consumers today have access to better goods and services, their representatives are on policy-making bodies, they have forums like insurance ombudsman and banking ombudsman to resolve their disputes, they have a law that empowers them by giving them the right to information and most important of all, they have a strong, vibrant consumer law. And there is every indication that in the next decade or so, Indian consumers will triumph.
Girimaji is a consumer rights columnist.




ICON H.D. Shourie
Crusader of rights

When the sun rises in Mumbai, it would be as sunny as nine in the morning in Imphal. When the sun sets in Mumbai, it would be as dark as nine in the night in Imphal. But the time on the clock would be 'standard'-the Indian Standard Time.
That means people in the northeast, being dictated by the Indian Standard Time which is determined by the meridian that passes through Allahabad, are deprived of a lot of daylight working hours. No one thought of it, till H.D. Shourie, father of former Union minister Arun Shourie, took the matter to the court seeking that India should have more than one time zone, like the US which has six or Russia, which has nine.
The attempt failed, but till Shourie took up the issue, no one had thought how India was so stuck in its heartland. Shourie always worked in the heartland of issues-for the marginalised. During his 35 years in the Indian Administrative Service, he was responsible for setting up the National Productivity Council and the Indian Institute of Foreign Trade. After retirement and a short stint abroad, Shourie set up a public interest organisation called Common Cause which specialised in consumer rights. It was mainly after the relentless campaign by him and a few others that the government came forward with a Consumer Protection Act, and set up a string of consumer courts.
The causes he took up till his death at the age of 95 last year varied from suffering caused to the litigant by lawyers' strikes, to arbitrariness in electricity and telephone billing. It was on a petition filed by him that the apex court gave detailed directions leading to the reduction of burden of criminal cases pending in courts.
It was Shourie again who litigated and secured from the Supreme Court an order to political parties to maintain accounts.
Though the public interest litigation jurisdiction of the courts has been made use of by many activists for causes such as human rights and environment protection, no one made it as effective a tool as Shourie did in ensuring the rights of the consumer. In fact, he even made use of the consumer protection law, which he helped draft, to discipline striking flight engineers, bank employees and lawyers. Till Shourie came on the scene, the issues of striking bank employees or flight engineers were seen only as dispute between the employer and the labourer. Shourie told them, and the courts and the country, that there was one more person who had to be heard in these disputes-the consumer.
R. Prasannan

More power to consumer (31-12-2006)

Consumer activism: We have one of the best laws in the Consumer Protection Act

The last two decades have seen a metamorphosis of the Indian consumer-from a passive, apathetic being to a demanding, aggressive entity. Two very significant developments have brought about this spectacular attitudinal shift: the introduction of a path-breaking consumer protection law in 1986 and the opening up of the economy in 1991.
The consumer courts have so far registered 2.7 million complaints. These include complaints against defective goods, deficient services, unfair trade practices and even restrictive trade practices. But the cases against insurance companies form the biggest chunk.
Consumer activism has not been confined to litigation. In the last decade or so, consumers have been effectively using dharnas, road blockades and spontaneous protest demonstrations to register their dissatisfaction with poor services.
More recently, consumers have even begun to use boycott as a weapon, something unheard of earlier. And they are using the latest means of communication such as e-mails and SMSes to consolidate such protests. Last year, consumers in Bangalore boycotted petrol pumps for a day to express their anger over frequent petrol price hikes. And they used SMSes to spread the word. In 2003 and 2006, there were consumer boycotts of colas in response to the reports of the Centre for Science and Environment on pesticide residues in these drinks.
Prior to 1986, consumers would hesitate to take on large corporations and multinationals. But consumer law changed all that. Take for example, the consumer who filed a case against Reliance India Mobile for its failure to shift his telephone from Chandigarh to Kurukshetra. Or the consumer group that took on United Breweries for surrogate advertising.
Public sector undertakings, too, came under fire for deficient services and high-handed behaviour. A senior citizen, for example, took the biggest public sector undertaking to the consumer court, protesting harassment by a Railway employee. The consumer court awarded exemplary damages to the tune of Rs 25,000 (transfer petition no. 49 of 2004). Farmers, too, made use of the law to file class action suits against seed companies that sold substandard seeds, resulting in poor yields.

Pumped up by their newfound power, consumers even challenged strikes by employees of public sector service providers and demanded consequential damages. The apex consumer court turned it down, but said that where such strikes were illegal, consumers could get compensation for the inconvenience and harassment caused to them (Common Cause vs Union of India and others, OP no. 153 of 1993).
But the toughest battle that consumers fought was on the issue of medical negligence. In the absence of a law codifying the rights of patients in the country, it was not easy to take on doctors, particularly when they withheld medical records, thereby preventing consumers from going to court. But today, consumer court orders have made sure that hospitals and doctors recognise and respect the rights of patients. A recent order of the apex consumer court has held that even turning away a patient (for want of a bed) without providing emergency treatment constitutes negligence (Medical Officer, ESI Hospital v. Shri Ranjit Kumar Das, FA no. 313 of 1997).
The Consumer Protection Act (CPA) also promoted the growth of consumer groups in the country. Prior to 1986 there were just about 60 consumer groups; post CPA, the number jumped to 600 and today, India boasts over 2,000 consumer groups. And their work is as varied as their geographic spread. Whether it is comparative testing of products, campaigns against tobacco and genetically modified foods or international trade and competition issues, Indian consumer groups have made their presence felt not just on local and national forums, but also on international platforms.
The process of economic liberalisation set in motion by the government in 1991 saw the end of state monopoly in sectors like civil aviation, insurance, telecommunication and banking, and Indian consumers found themselves enjoying more choices, better quality and reduced tariffs. Nowhere was this more apparent than in the civil aviation sector where fierce competition and the entry of low-cost, no-frill airlines brought down air fares to such an extent that the Railways was forced to lower its upper class fares this year and even come up with promotional offers to attract passengers! Beginning 1999, the telecom sector, too, saw tariff rationalisation and phenomenal lowering of landline, mobile and Internet tariffs.
Regulators and competition certainly made a world of difference, but consumers soon discovered that there was no substitute for consumer activism to curb unfair trade practices and deficient services. This prompted specialisation within the existing consumer groups. It also led to the birth of sector-specific groups dealing with services such as telecom, banking, power and insurance.
From funding consumer groups to starting a toll-free national consumer helpline (1800-11-4000) and hosting a Web site (www.core.nic.in), the Union ministry of consumer affairs has been a constant source of encouragement to consumer groups. All these developments have obviously got the trade and industry worried. Proof of this is in their recent offer to set up a dedicated centre for resolution of consumer complaints and promotion of responsible business practices.
All this does not mean that consumer activism has reached its pinnacle or that consumer sovereignty has been established in India. Far from it. We have one of the best laws in the Consumer Protection Act, but the functioning of the consumer courts is far from perfect. We have over two dozen laws aimed at protecting consumer interest, but their implementation is highly unsatisfactory. And we need new laws to tackle newer problems, particularly in the financial services sector. Consumer safety-be it in food and drugs, services or manufacturing-has not received the kind of attention that it should. There is still a very large percentage of disadvantaged consumers whose basic needs like safe drinking water, power supply and health services have not been met. Most consumer groups are urban-based and much work needs to be done in rural areas.
But compared with the scenario a quarter century ago, we have come a long way. Consumers today have access to better goods and services, their representatives are on policy-making bodies, they have forums like insurance ombudsman and banking ombudsman to resolve their disputes, they have a law that empowers them by giving them the right to information and most important of all, they have a strong, vibrant consumer law. And there is every indication that in the next decade or so, Indian consumers will triumph.
Girimaji is a consumer rights columnist.




ICON H.D. Shourie
Crusader of rights

When the sun rises in Mumbai, it would be as sunny as nine in the morning in Imphal. When the sun sets in Mumbai, it would be as dark as nine in the night in Imphal. But the time on the clock would be 'standard'-the Indian Standard Time.
That means people in the northeast, being dictated by the Indian Standard Time which is determined by the meridian that passes through Allahabad, are deprived of a lot of daylight working hours. No one thought of it, till H.D. Shourie, father of former Union minister Arun Shourie, took the matter to the court seeking that India should have more than one time zone, like the US which has six or Russia, which has nine.
The attempt failed, but till Shourie took up the issue, no one had thought how India was so stuck in its heartland. Shourie always worked in the heartland of issues-for the marginalised. During his 35 years in the Indian Administrative Service, he was responsible for setting up the National Productivity Council and the Indian Institute of Foreign Trade. After retirement and a short stint abroad, Shourie set up a public interest organisation called Common Cause which specialised in consumer rights. It was mainly after the relentless campaign by him and a few others that the government came forward with a Consumer Protection Act, and set up a string of consumer courts.
The causes he took up till his death at the age of 95 last year varied from suffering caused to the litigant by lawyers' strikes, to arbitrariness in electricity and telephone billing. It was on a petition filed by him that the apex court gave detailed directions leading to the reduction of burden of criminal cases pending in courts.
It was Shourie again who litigated and secured from the Supreme Court an order to political parties to maintain accounts.
Though the public interest litigation jurisdiction of the courts has been made use of by many activists for causes such as human rights and environment protection, no one made it as effective a tool as Shourie did in ensuring the rights of the consumer. In fact, he even made use of the consumer protection law, which he helped draft, to discipline striking flight engineers, bank employees and lawyers. Till Shourie came on the scene, the issues of striking bank employees or flight engineers were seen only as dispute between the employer and the labourer. Shourie told them, and the courts and the country, that there was one more person who had to be heard in these disputes-the consumer.
R. Prasannan