BBM 306

CONSUMERISM AND CONSUMER PROTECTION

PRESENTED BYIQRA AFSAR 107520 BBM 5th Semester

CONTENTS 1. 2. 3. 4. 5. 6. 7. 8. 9 INTRODUCTION WHAT IS CONSUMERISM? Why Is It Needed Components Of Consumerism Consumer Protection UN Guidelines for Consumer Protection Parties involved in Consumer Protection Conclusion Bibliography

INTRODUCTION
A consumer is a person or group of people that are the final users of products and or services generated within a social system. A consumer may be a person or group, such as a household. The concept of a consumer may vary significantly by context Consumer rights are an integral part of our lives like the consumerist way of life. We have all made use of them at some point in our daily lives. Market resources and influences are growing by the day and so is the awareness of ones consumer rights. These rights are well defined and there are agencies like the Government, consumer courts and voluntary organizations that work towards safeguarding. While we like to know about our rights and make full use of them, consumer responsibility is an area which is still not demarcated and it is hard to spell out that all the responsibility is that a consumer is supposed to shoulder. Consumer rights are the rights given to a "consumer" to protect him/her from being cheated by salesman/manufacturer/shopkeeper. Consumer protection laws are designed to ensure fair trade competition and the free flow of truthful information in the marketplace. The laws are designed to prevent businesses that engage in fraud or specified unfair practices from gaining an advantage over competitors and may provide additional protection for the weak and those unable to take care of themselves. Consumer Protection laws are a form of government regulation which aim to protect the rights of consumers. The process of development coupled with increasing liberalization and globalization across the country has enabled consumers to realize their increasingly important role in society and governance. However, concentration of the market power in the hands of a select few has affected consumers behaviour over time. In a developing country like India where the incidence of poverty and unemployment is very high and the level of literacy is very low, the people face a volume of problems, particularly in the context of consumer related issues. Unlike in the developed world, consumers in these countries have not been able to play a greater role in the development process.

CONSUMERISM

Consumerism is a social and economic order that encourages the purchase of goods and services in ever-greater amounts. Sometimes, the term "consumerism" is also used to refer to the consumerists movement, consumer protection or consumer activism, which seeks to protect and inform consumers by requiring such practices as honest packaging and advertising, product guarantees, and improved safety standards. In this sense it is a movement or a set of policies aimed at regulating the products, services, methods, and standards of manufacturers, sellers, and [2] advertisers in the interests of the buyer. In economics, consumerism refers to economic policies placing emphasis on consumption. In an abstract sense, it is the belief that the free choice of consumers should dictate the economic structure of a society. The term "consumerism" was first used in 1915 to refer to "advocacy of the rights and interests of consumers" (Oxford English Dictionary) but in this article the term "consumerism" refers to the sense first used in 1960, "emphasis on or preoccupation with the acquisition of consumer goods .

Consumerism as the protection of the interests of the buyers of goods and services against defective or dangerous goods etc. "Consumerism is a movement or policies aimed at regulating the products or services, methods or standards of manufacturers, sellers and advertisers in the interest of buyers, such regulation maybe institutional, statutory or embodied in a voluntary code occupied by a particular industry or it may result more indirectly from the influence of consumer organizations" As commonly understood consumerism refers to wide range of activities of government business and independent organisations designed to protect rights of the consumers. Consumerism is a process through which the consumers seek redress, restitution and remedy for their dissatisfaction and frustration with the help of their all organized or unorganized efforts and activities. It is, in-fact a social movement seeking to protect the rights of consumers in relation to the producers of goods and providers of services. In-fact consumerism today is an all-pervasive term meaning nothing more than people's search for getting better value for their money. Consumer is the focal point of any business. Consumers' satisfaction will benefit not only business but government and society as well. So consumerism should not be considered as consumers' war against business. It is a collective consciousness on the part of consumers, business, government and civil society to enhance consumers' satisfaction and social welfare which will in turn benefit all of them and finally make the society a better place to live in.

Components of Consumerism:

First and foremost is self-protection by consumer. Consumers' consciousness determines the effectiveness of consumerism. Voluntary Consumer Organizations engaged in organizing consumers and encouraging them to safeguard their interests is another important element of consumer movement The success of consumerism lies in the realization of the business that there is no substitute for voluntary self-regulations. Regulation of business through legislation is one of the important means of protecting the consumers. Consumerism has over the time developed into a sound force designed to aid and protect the consumer by exerting, legal, moral and economic pressure on producers and providers in some of the developed countries. Consumer needs protection against mal-practices and deceit by sellers. Consumer should have adequate rights and right of recourse to redressal measures against defaulting businessmen.

Why Is It Needed?
Short supply of many goods and services, especially of essential items, is a very serious problem afflicting the Indian consumer. The Indian consumer is also the victim of lack of effective or workable competition. Many products with which consumers in advanced countries are quite familiar are still new to a very large segment of the Indian consumers. The unfamiliarity of the consumers with product features makes the sale of substandard, inferior or even defective products easier in India than in advanced countries. . Due to low literacy levels and unsatisfactory information flows, the Indian consumers, by and large, are not conscious of all their rights. It has been said that the legal process in India is comparatively time-consuming and cumbersome. This discourages the consumers from seeking the redressal of their grievance by means of the judicial process. 6. Consumerism in India is not well organized and developed. 7. Though the public sector had not been developed and expanded to serve the public interest by providing effective competition to the private sector, increasing production, improving distribution, etc., it failed to produce benefits that were commensurate with the investment. 8. Though there are a number of laws to safeguard the interests of consumers, they are not effectively implemented and enforced to achieve the objectives.

CONSUMER PROTECTION

Consumer protection consists of laws and organizations designed to ensure the rights of consumers as well as fair trade competition and the free flow of truthful information in the marketplace. The laws are designed to prevent businesses that engage in fraud or specified unfair practices from gaining an advantage over competitors and may provide additional protection for the weak and those unable to take care of themselves. Consumer protection laws are a form of government regulation which aims to protect the rights of consumers. Consumer protection is linked to the idea of "consumer rights" (that consumers have various rights as consumers), and to the formation of consumer organizations, which help consumers make better choices in the marketplace and get help with consumer complaints. The UN Guidelines developing policies for consumer protection: Physical safety; Promotion and protection of consumers economic interests; Standards for safety and quality of consumer goods and services; Distribution facilities for essential consumer goods and services; Measures enabling consumers to obtain redress; Education and information programmes; Promotion of sustainable consumption; and Measures relating to specific areas like water, food and pharmaceuticals.

For effective consumer protection, a practical response on the part of three parties:-

GOVERNMENT Government has accorded top priority to 'Consumer Education, Consumer Protection and Consumer Awareness. India is a country, which has taken a lead in introducing progressive legislation for consumer protection. The most important milestone in Consumer Movement in the country has been the enactment of the Consumer Protection Act, 1986. The Act enshrines all the consumers rights which are internationally accepted. As per the Act, consumer protection councils have been established at Central, State and District levels to promote and protect the consumer rights. They are: Right to Safety Right to information Right to Choose

 Right to be heard Right to Seek Redressal Right to Consumer Education

Government has taken up number of activities and schemes in creating consumer awareness in the country as part of this Consumer Awareness Scheme. 1. Joint Campaign The slogan Jago Grahak Jago has now become a household name as a result of the publicity campaign undertaken in the last 4 years. Through the increased thrust on consumer awareness in the XIth Five Year Plan, the Government has endeavoured to inform the common man of his rights as a consumer. As part of the consumer awareness scheme, the rural and remote areas have been given top priority.

2. JAGRITI-An initiative towards making an informed consumer JAGRITI was organized at international polytechnic for women in New Delhi in February 2012 for spreading the message of consumer protection.Consumer Awareness Program at New Delhi Institute of Management, New Delhi Multi Media Publicity Campaign Publicity through print media using news paper advertisements, electronic medium by telecast of video on various consumer related issues such as Grievance Redressal system, MRP, ISI Hall-Mark, Alternate Dispute, Redressal system, weights and measures, Rights of Consumers etc. Participation in India International Trade Fair Keeping in view the large number of visitors to India International Trade Fair, the Department displayed its activities through a stall of jago grahak jago. On the spot guidance was also given to consumers during the Trade Fair.

The Business
The business ,comprises of the producers and all the element of the distribution channels. The success of consumerism lies in the realisation of the business that there is no substitute for voluntary self-regulations. Little attention from the business will not only serve consumers interest but will also benefit them. Some businesses in India have come together to adopt a code of conduct for regulating their own activities.
EXAMPLE

AKSHAYA It has grown into one of the most respected real estate companies in the state, reputed for its transparent business practices and innovation. Akshaya launch a consumer awareness initiative called "Akshaya Home Facts" through which the customers are educated on all the nuances involved in purchase of real estate property.

Currently, the Financial Consumer Agency of Canada (FCAC) undertakes a number of financial literacy initiatives, focusing mainly on the creation of tools, programs and publications to build awareness and develop the financial literacy of Canadians. These regulations limit business practices that are not beneficial to consumers and require the provision of clear and timely information to Canadians about credit products,

THE CONSUMER/CONSUMER ORGANIZATIONS

Consumer must be aware of his rights, raise voice against exploitation and seek redressal of his grievances. Consumers' consciousness determines the effectiveness of consumerism. It is the duty of the consumer to identify his rights and to protect them. Voluntary Consumer Organisations engaged in organising consumers and encouraging them to safeguard their interests is another important element of consumer movement

CONSUMER NGOs IN INDIA

Consumer Guidance Society of India Consumer Guidance Society of India (CGSI) was founded in 1966 to eliminate all possible forms of consumer exploitation. CGSI has been instrumental in promoting consumerism by publishing its flagship monthly periodical "Keemat", performing product testing, providing consumer education at the grass root level such as schools, and giving legal guidance to consumers with grievances

Association for Consumers Action on Safety and Health Association for Consumers Action on Safety and Health (ACASH) is a consumer organization that focuses on health-related consumer issues. It has programs aimed at the general public promoting consumer rights and overall dispersion of information regarding consumer safety. Founded by a group of doctors, lawyers and other eminent personalities, ACASH today helps consumers in India through education & awareness, training, developing IEC (Information, Education and Communication) material, networking, advocacy and lobbying and follow-up action. Consumers' Forum

Consumers' Forum is one the consumer organizations that existed in India long before the Consumer Protection Act 1986 was passed. The mission of the organization, at its start, was to promote consumerism by making aware, training and educating the consumers on their rights.

CONCLUSION
Invariably, consumers are a vulnerable lot for exploitation, more so in a developing country with the prevalence of mass poverty and illiteracy. India too is no exception to it. Instances like overcharging, black marketing, adulteration, profiteering, lack of proper services in trains, telecommunication, water supply, airlines, etc are not uncommon here. From time to time, the government has attempted to safeguard consumer's interests through legislations and the CPA 1986 is considered as the most progressive statute for consumer protection. Procedural simplicity and speedy and inexpensive redressal of consumer grievances as contained in the CPA are really unique and have few parallels in the world. Implementation of the Act reveals that interests of consumers are better protected than ever before. However, consumer awareness through consumer education and actions by the government, consumer activists, and associations are needed the most to make consumer protection movement a success in the country.

BIBLIOGRAPHY
BOOK:BUSINESS ENVIRONMENT (Francis Cherumlam) INTERNET SITES: http://www.nationalconsumerhelpline.in/DataFiles/jagriti-IPW.pdf http://akshayahomes.indiaproperty.com/index.php http://www.onestopias.com/ias-articles/indian-administrativeservices/details/%E2%80%98jago-grahak-jago%E2%80%99-%E2%80%93-aninitiative-towards-consumer-education-and-awareness-222.asp http://www.oft.gov.uk/OFTwork/consumer-protection/ http://www.centralchronicle.com/godrej-appliances-launches-largest-consumerinitiative-on-green.html http://www.espreson.com/news-of-india/west-bengal-governments-new-onlineinitiative-for-consumers-affairs/