Introduction: -Even though, in the modern competitive
market consumer is regarded as the king but in reality he gets exploited by
manufacturers and sellers. They are in superior position than consumers. So,
consumers need to be protected. Consumer protection means safeguard the
interest of the consumers and allowing him to exercise his rights. Protection
of the interest of consumers with the help of various laws is a recent
development. But history shows that even in ancient time's kings and emperors
have taken note of protection of consumer rights.
The following extract from the book
"Consumer Protection Administration, organization and Working" by
Cheena Gambhir talks about Consumer Protection in ancient times.
"Arthashastra of Kautilya details
the precepts and practices of the Mauryan State where it was the duty of the
superintendents to put government products in the market under favorable
conditions and to supervise their sales at reasonable rates. Merchants who
cheated or interfered generally with the normal functioning of the market
(prices) were open to heavy punishment."
The following points emphasis the
importance of consumer protection:
1.
Seller
dominant market:
-If the market is dominated by sellers
than the consumer's choice as well as his welfare gets the last preference. All
the transactions are finalized in favour of sellers, middlemen and
manufacturers. E.g. if there is shortage of goods then the buyer will have to
buy a product at the price quoted by the seller.
2.
Ignorance
of consumers:
-Ignorance of consumers about their rights, market
conditions, price levels, product details, etc. result into consumer
exploitation. Many times consumers do not even realize that they are being
cheated. E.g. a shopkeeper may sell a product which is actually received by him
as free sample; fee gifts offered by company may not reach upto the consumer.
3.
Tendency
of the Consumers:
-Majority of the consumers get attracted towards the
products of cheap prices, discounts, various schemes, etc. this weakness of the
consumers leads to their exploitation without their knowledge.
4.
Unorganized
Consumers:
-Consumers are neither organized nor united.
Compared to them the producers and sellers are in a superior position. An
individual consumer cannot fight against powerful traders. Thus, it is easy to
exploit unorganized and widely spread consumers.
5.
Nature
of Products:
-Modern products are the end results of
complicated production processes. It is beyond the capacity of poor and
illiterate consumers to judge the quality or safety aspects of a product.
Moreover these consumers/customers cannot take legal help even though they
realize that they are being cheated because they do not understand production
process thoroughly.
6.
Lack
of Information:-
Today's consumer lives in a complex world.
Distance between producer and consumer is vast. It is impossible to establish
direct contact between producer and consumer. After globalization and
liberalization policy of the government, the market is full of domestic as well
as imported products. But it is difficult for the consumer to get reliable
information about the product before it is purchased.
7.
Lack
of Participation of Consumers: -It is observed that
certain decisions, which directly affect consumer's interest, are taken without
any consultation with consumers or their organizations. E.g. charges of daily
necessities such as public transport, cooking gas, telephone, electricity, etc.
only a strong consumer movement can pressurize various organizations to allow
consumer participation in the decision making process.
8.
Increase
in consumption rate:
-compared to earlier period, consumption rate is
increased due to increase in population as well as tendency of the people to
lead a comfortable life. It results into mass production, many varieties,
increased prices, unfair trade practices, etc. such a situation in the market
confuses the consumers and they fall prey (victim) to
exploitation.
9.
To
restrict unfair trade practices:-When more and
more consumers start talking support of Consumer Protection Act (1986) to
resolve their grievances then it will automatically pressurize the
manufacturers, middlemen and traders for not conducting the trade by unfair
means.
