NATIONAL SEMINAR ON CONSUMER PROTECTION-NEW AGE CHALLENGES

Consumer Rights and Responsibilities

By: Ankita Shukla1

Consumers are the largest economic group in the country’s economy and that is what we all
know. Without a consumer, not even the entire economy but not even a single company can run.
We have seen the situation in past and studied also that the entire economy runs on the concept
of demand and supply. Now these days because of so much advertisement, so much publicity
and because of the image of the brand ambassador, companies try to cheat the customers. If it’s
an economical product, one can digest that but if it’s expensive, it hurts.

Twenty-seven years ago, the Consumer Protection Act gave Indian consumers the right to repair,
replacement or refund if products sold to them turned out to be defective. Yet, businesses do not
recognize this right to date. It is referred to as the Right to Safety and protection from aeren-
powwow. The Right to be Informed and protected against deceitful, fraudulent or information
that misleads and have an access to correct information as well as facts required to go for
informed choices along with decisions.

The Right to Choose and have easy access to different types of products and services offered at
competitive and fair prices. The Right to be heard helps to express and represent interests of
consumer in the making of political and economic decisions. The Right to Redress and getting
compensation for misrepresentation, unsatisfactory services or shoddy goods is important
for consumers and the Right to Consumer Education helps the consumer to become informed
and capable of functioning properly in the market. The Right to a Healthy Environment enhances
the quality of life and gives protection from environmental issues for present as well as future
generations.

There is a well-known saying that ‘there cannot be rights without responsibilities’. Having
examined the consumer rights and the purpose served by them, it is necessary to consider

1
Assistant Professor, AIALS, Amity University, Noida, Contact Number-7042356002
Email ID- [email protected]
whether consumers should also be responsible enough to be entitled to exercise their rights. For
instance, to be able to exercise their right to be heard, consumers should avail of the
opportunities to know and keep informed about consumer problems.

Keywords: Consumer, Consumer Protection Act, Rights, Responsibilities.

The growing interdependence of the world economy and international character of many
business practices have contributed to the development of universal emphasis on consumer rights
protection and promotion. Consumers, clients and customers’ world over, are demanding value
for money in the form of quality goods and better services. Modern technological developments
have no doubt made a great impact on the quality, availability and safety of goods and services.
But the fact of life is that the consumers are still victims of unscrupulous and exploitative
practices. Exploitation of consumers assumes numerous forms such as adulteration of food,
spurious drugs, dubious hire purchase plans, high prices, poor quality, deficient services,
deceptive advertisements, hazardous products, black marketing and many more. In addition, with
revolution in information technology newer kinds of challenges are thrown on the consumer like
cybercrimes, plastic money etc., which affect the consumer in even bigger way. ‘Consumer is
sovereign’ and ‘customer is the king’ are nothing more than myths in the present scenario
particularly in the developing societies. However, it has been realized and rightly so that the
Consumer protection is a socio- economic programme to be pursued by the government as well
as the business as the satisfaction of the consumers is in the interest of both. In this context, the
government, however, has a primary responsibility to protect the consumers’ interests and rights
through appropriate policy measures, legal structure and administrative framework.

Consumers participate in the marketplace by using a particular product. Had there been no
consumer no company would exist. The status of consumer is more or less pathetic as far as
consumer rights are concerned.. You can recall the case of dropsy because of adulterated mustard
oil. No matter how bad quality you get, chances are you will get a rude response from the
shopkeeper if you dare to complain.
Consumerism: Conceptual Consideration

According to McMillan Dictionary (1985) “Consumerism is concerned with protecting

consumers from all organizations with which there is exchanged relationship. It encompasses the
set of activities of government, business, independent organizations and concerned consumers
that are designed to protect the rights of consumers”. In the good olden days the principle of
‘Caveat emptor’, which meant buyer beware governed the relationship between seller and the
buyer.

In the era of open markets buyer and seller came face to face, seller exhibited his goods, and
buyer thoroughly examined them and then purchased them. It was assumed that he would use all
care and skill while entering into transaction. The maxim relieved the seller of the obligation to
make disclosure about the quality of the product. In addition, the personal relation between the
buyer and the seller was one of the major factors in their relations. But with the growth of trade
and its globalization the rule no more holds true. It is now impossible for the buyer to examine
the goods beforehand and most of the transactions are concluded by correspondence.

Further on account of complex structure of the modern goods, it is only the producer / seller who
can assure the quality of goods. With manufacturing activity becoming more organized, the
producers / sellers are becoming stronger and organized whereas the buyers are still weak and
unorganized. In the age of revolutionized information technology and with the emergence of e-
commerce related innovations the consumers are further deprived to a great extent. As a result
buyer is being misled, duped and deceived day in and day out.2 Mahatma Gandhi, the father of
nation, attached great importance to what he described as the “poor consumer”, who according to
him should be the principal beneficiary of the consumer movement. He said: “A Consumer is the
most important visitor on our premises. He is not dependent on us we are on him. He is not an
interruption to our work; he is the purpose of it.

India has been observing 15 March since 1989 as the National Consumers’ Day. This day has a
historic importance as it was on this day in 1962, when the Bill for Consumer Rights was moved
in the US Congress. During his speech President John F. Kennedy had remarked:

2
http://www.legalservicesindia.com/article/article/consumer-protection-law-in-india-1739-1.html
“If a consumer is offered inferior products, if prices are exorbitant, if drugs are unsafe or
worthless, if the consumer is unable to choose on an informed basis, then his dollar is wasted, his
health and safety may be threatened, and national interest suffers.”

Consumer rights are now an integral part of our lives like a consumerist way of life. They have
been well documented and much talked about. 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 one's consumer rights. These rights are well-defined and there are agencies like the
government, consumer courts and voluntary organizations that work towards safeguarding them.

In the 20th century, the presence and influence of the market grew dramatically in consumer life.
We began to purchase things from the market for a price. Soon, mass production and industrial
production came into being, giving the consumer world an entirely new dimension. Have you
ever wondered how much urban consumers depend on the market for fulfilment of even their
basic needs? This over-dependence on the market and the inherent profit motive in mass
production and sales has given manufacturers and dealers a good reason to exploit consumers.
As a consumer, you would know how market products are constantly under-weight, of inferior
quality and do not prescribe to quality standards specified by quality-control agencies.
Consumers not only do not get value for their money but also often have to suffer losses and
inconvenience due to market manipulations.

A consumer right is the hallmark of consumer protection law. There is an inequality of

bargaining power between the consumer and the producer which leads to the exploitation of the
consumer.3 Consumer protection covers the rights and privileges of consumers and how these
rights should be accorded to them. It also deals with several issues relating to the welfare of the
consumer and is also concerned with raising the standard of living in terms of improving the
political and social well-being of consumers. The major aim of consumer protection laws is to
empower the consumer so as to enable him to enjoy these rights. The rights of consumers are
becoming increasingly important around the world. Governments have passed numerous laws to
assure that end user of products and services have the same rights as manufacturers and

3
B.W. Harvey & D.L Parry; The Law of Consumer Protection and Fair Trading , 1996, London: Butterworth’s, at
pp.13-14
providers of services. However, the inclusion of consumer rights in the Constitution of a country
will enhance effective consumer protection.

Who is a Consumer?

There is no universally acceptable definition of a consumer as authorities are divided with

respect to the meaning of the term “consumer”. The Black’s Law Dictionary defines “consumer”
as a person who buys goods or services for personal, family, or household use, with no intention
of resale; a natural person who uses products for personal rather than business purposes. 4
O’
Grady defines “consumer” as the final or end user of all goods and services produced in an
economy. 5 Tarr defines “consumer” as any person, natural or legal, to whom goods, services or
credit are supplied or sought to be supplied by another in the course of a business carried on by
him.6

Consumers all over the world are accorded various rights. John F. Kennedy7 in 1962 proposed
four ideals for consumer protection law which he called rights: the rights to safe products, the
right to demand information about a product or service, the right to a competitive marketplace
and the right to get redress against a manufacturer or a distributor. Consumer rights emerged
after the second generation rights as a reaction to a postmodern global world engulfed by
scientific evolution. The Consumer International proposed eight consumer rights.8

These include the right to safe products, the right to demand and receive information, the right to
be heard the right to choose, the right to consumer education, the right to redress, the right to the
satisfaction of basic needs and the right to a healthy environment. It is pertinent at this juncture
to examine these rights more closely.

a. The Right to Safety

4
B.A Garner; Black’s Law Dictionary 8th Edition (St Paul Minnessota: West Publishing Co. Ltd.), p, 316
5
Consumer Remedies” 1982, 60 Canadian Bar Review(No.4)p.549
6
Tarr; “Consumer Protection and the Market Place,” 5 Otago Law Review, p.397
7
Famous American President 1917 -1963
8
http;//www.consumersinternational.org
A consumer has the right to demand safe goods. He is entitled to protection from hazardous,
unsafe and substandard goods.9 This right entails that a manufacturer must ensure that their
products are safe for use by the ultimate consumer. A manufacturer of goods therefore, owes a
duty of care to ensure that the goods are safe and are free from harmful defects.10 The
consumers’ right to safety is recognized when damages are awarded to a consumer who suffered
harm as a result of the manufacturer’s negligent act. A healthy nation, they say, is a wealthy
nation. There is need to ensure that all products are safe for consumption. The relevant
authorities should continue to insist that expiry dates of all consumer goods be put on the label
and should reflect safety status.

Most developed countries have adopted laws to reflect this view requiring ingredients labeling so
as to eliminate any advertisement or wrong information that creates a wrong impression about
the quality or safety of a product in order to protect this fundamental right of the consumer.
Consumers have the right of protection against industrial activities, goods and services, which
may damage or destroy their property, injure or even kill them. However, consumers’ ability to
exercise the right to safety depends wholly on a full prior disclosure being made by operators of
chemical, pesticides and allied industries, manufacturers of goods, products and services
provider concerning the degree of safety of their industrial activities or reliability of goods,
products or services. Precautions that should be taken to avoid accidents, or to mitigate damage
or injuries in the case of accidents, and who is to be held liable in the event of consumers having
grievances concerning such activities, goods, products or services must be exhaustively
communicated to the consumer.

b. The Right to be Informed

Every consumer has the right to complete information on the pricing, quality and ingredients of
goods, products, and services, as well as the identity of manufacturers or producers. Consumers
have the right to disclosure of information about the production, storage, transportation, use or
release of hazardous substances that could potentially endanger human health or life.

c. The Right to Be Heard

9
http://www.businessdictionary.com/definition/consumer-rights.html
10
Donoghue v. Stevenson op. cit at p. 562
Consumers have the right to be heard on issues, policies, plans, programmes and decisions that
concern them. The scope of this right entitles consumers to redress of grievances concerning
substandard, unsafe, unduly expensive goods and services, unfair claims which are not
substantiated by tests and other unfair practices against them.

d. The Right to Choose

Consumers have the right to choose from a variety of quality goods and services available at
competitive prices. Where a monopoly is the supplier or provider, consumers have the right to
quality goods and services at reasonable prices. However, this right can be exercised only once
consumers are able to clinch their freedom to receive or impact information or ideas on goods
and services available in the market

e. The Right to Consumer Education

The term consumer education refers to the process of exposing people to the knowledge about
their rights and duties as well as skills needed by individuals, groups and institutions to be able to
prioritize their needs, minimize waste, maximize opportunities for purchasing and utilizing
goods and services. 11 Consumer education is also about enabling citizens adapt to personal
environmental, economic, social and technological changes and be able to take rational decisions
12
and act efficiently in the marketplace. A consumer has the right to make himself aware of
consumer “evils” in society. 13
The greatest asset any consumer can have is education. This is
because an educated consumer is a sure bulwark against the phenomena of consumer evils. There
is the need for the consuming public to be properly educated on the menace and health hazards
arising from the consumption or use of products with false claims. Consumers should be
educated on the existing regulatory and protection agencies in the country. Education engenders
awareness and enlightenment.

Every consumer has the right to be aware of basic consumer rights and responsibilities in order
to be able to make an informed decision concerning choice of goods, services, and pricing

11
E. Ekhide op. cit 78-80
12
P.E Okwuraiwe; Perspective on Consumer as Missing link in the Court of Consumer Protection available at
http://www.nigerianobsewvernews.com/4 220220///features 6-html
13
I.M Chukwu ; “Advertising Practice and Consumer Protection” Consumer Journal (2007) vol. 3 p. 36
thereof. The right entails submission to mandatory comparative testing ranking and evaluation of
all consumer goods and products such as food and pharmaceuticals with the aim of publication
of such findings for consumer education. This may empower consumers into taking action
against unsafe products and claims which are not substantiated by laboratory tests.

f. The Right to the Satisfaction of Basic Needs

By this right, a consumer is entitled to enjoy the goods or services rendered to him or her. This
implies that with respect to products, the goods must be fit for the purpose they were bought.
Also, the product in issue should as much as possible correspond with the description given to a
consumer or any description he is relying on. The scope of this right is reproduced under the Sale
of Goods Act.14 Accordingly, a breach of any implied condition in a contract of sale entitles the
consumer to repudiate the contract of sale, reject the goods supplied him, refuse to pay for them
if he had not paid or recover his money if he has already paid for them. However, a consumer
may nevertheless consider a breach of any condition in a contract of sale as a breach of warranty.
Accordingly, he has only the remedy of damages and cannot repudiate. However the Sale of
Goods Act is restricted to contracts of sale and product liability as against liability for services. 15
In Nigeria, there is no gainsaying the fact that many manufacturers and advertisers have deceived
consumers through unfair advertising; unfulfilled promises in sales promotion and exaggeration
of product benefits. There is a strong link between consumer protection and human rights.
Consumer protection law emerged in the 1970s in response to problems engendered by mass
production and market failure. Human rights law recognizes that everyone is entitled to a social
and international order in which his rights and freedoms can be fully realized. Enjoyment of
human rights depends on production and distribution of scarce goods and services whose
availability, quality and accessibility can be increased through international trade.

Consumer Responsibilities:

While one likes to know about our rights and exercise them, hardly ever accord the same
importance and urgency to our Consumer rights and responsibilities are intertwined together and

14
The Sale of Goods Act 1893 Cap 164 of 1958
15
Ibid
without sharing consumer responsibility, consumers will find it very difficult to enjoy their rights
on a long-term basis.

Consumers need to tread cautiously in the market place. While buying a product, ask yourself
these questions:

Do you really need this product?

For how long would you like to use it? Will it last as long as you would like it to?

What are the health fallout of that product? If it is a food product, does it give you any health
benefits? Check the labeling of the product to see the nutritional chart of the product.

Consumer can also empower himself by knowing the law. For e.g., ISI mark on bottled mineral
water has been made mandatory by the government and now labeling of non-vegetarian
ingredient in food products will also mandatory for the industry. 16

Consumer rights and responsibility can play a very important role in not only checking the
market but also in restricting unnecessary consumption. It is not the sole responsibility of the
market or of the government to provide consumers with detailed information. A consumer, on his
part, must make every effort to inform himself of the product or service. For example, if a
consumer consumes a health product, he must make efforts to inform himself beforehand about
its possible side effects, and must also exercise caution regarding his eating habits, diet and
physical exercise, to take full advantage of the product.

Consumer responsibility is based on ethics and rationale. There is no definitive set of consumer
responsibilities and a consumer must exercise restraint in consumption to consume responsibly.
For example, conservation of the environment cannot be forced upon consumers but a consumer
must make a conscious effort to reduce consumption, choose environment-friendly alternatives
and conserve energy.

There is a need of awareness of consumer rights and it depends upon one that whether he follows
advice and gets his problems solved, but one should be aware that it might bet one’s cotton socks
that it would happen over and again. It can happen with anyone or everyone, or one can take a

16
https://anjalimathur994.wordpress.com/2013/12/04/consumer-rights-and-responsibilities-in-india
stand, enforce his rights and make the companies behave for doing what they ought to do in the
first place.

Consumer in India had started its journey with a need to raise his voice against the quality of
goods as back as in 1969 through housewives at Mumbai .It took a shape of revolution at later
stage and one day our parliament passed an act for the welfare of consumers in 1986 .This
Consumer Protection Act 1986 had further undergone many challenges, criticism and even
question on its legal validity was also put before the honorable Supreme Court of India After
hearing all sort of accusation and constraints from the big business houses , our apex court held
this welfare act very much valid , legal and within the framework of our constitution .

Since 1986 and after three important amendments to the act, scenario in the market has
drastically changed and consumerism in India is diverted to more of lust than limited to needs.
We are now easily confusing the things with what we need and what we want Its true, if we work
hard, we deserve nice things .But stuffing plenty of nice things which we really do not need
deprive the other consumers from the things they require for their survival .Keeping four cars for
four persons in the family is ultimately going to affect others and also more consumption of
nation’s resources like petrol etc.

Our sense of entitlement can muddy the waters when it comes to what you want and what you
really need. The sizes of our houses are expanding as per our income and resources irrespective
of the fact what we had in olden days. People were having more kids but still living in houses far
smaller than we’re willing to settle for today. Now we want a room for every child, plus a living
room, family room, media room, and kids’ playroom. And if we have to share a television, we
are very uncomfortable with the idea.