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Consumer Handbook
Department of Consumer Affairs
Government of India
Consumer Handbook
Department of Consumer Affairs
Government of India
Suresh Misra
Chair Professor & Coordinator
Centre for Consumer Studies
G.N. Sreekumaran
Consultant
Centre for Consumer Studies
Sapna Chadah
Assistant Professor
Centre for Consumer Studies
(iii)
MESSAGE
I am happy to know that the Department of Consumer Affairs, Ministry of Consumer
Affairs, Food and Public Distribution in association with the Centre for Consumer Studies,
Indian Institute of Public Administration, New Delhi is bringing out a Consumer Handbook
to educate and empower the consumers. It meets a long felt need for such a Handbook
which includes comprehensive information in a simple language and illustrations about the
rights, responsibilities and the protections available to the consumers against exploitation.
I am sure the consumers will take full advantage of the valuable information this
Handbook offers, and also share it with their family and friends. It is important that all
consumers are made aware of their rights and responsibilities. I would request various state
governments and other stakeholders to translate this Handbook in various languages for
larger benefit of the consumers.
I congratulate the Department of Consumer Affairs, GoI and the Centre for Consumer
Studies, Indian Institute of Public Administration for their laudable efforts in bringing out
this Handbook.
Dated: 30.06.
Place: New Delhi (Ram Vilas Paswan)
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MINISTER FOR CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION GOVERNMENT OF INDIA NEW DELHI-110 001
Office : Room No. 179, Krishi Bhawan, New Delhi-110001. 011-23070637, 23070642, Fax : 011-23386098. Resi. : 12, Janpath, New Delhi-110001. 011-23015249, 23017681
PREFACE
Consumption is an important facet of life. The pace and scope of consumption has
broadened under the forces of globalisation, liberalisation and technological innovations.
As the products and markets are becoming increasingly complex, there is need for
empowering and educating the consumers; to make them skilled and informed so that they
can understand their rights and responsibilities. Consumer Education aims to empower,
enable, equip the consumers and provide them tools of self-reliance. Empowered consumers
make optimal decisions, know their rights, and can complain and seek redress when their
rights are violated. Empowered consumers who complain and assert their rights are also
effective in helping businesses to innovate and improve. Consumer Education also benefits
the society by creating more active and informed citizens.
Interest in consumer education seems to be growing rapidly among public policy
makers, consumer protection personnel, educators, and business executives throughout the
world as a vehicle for improving both consumers’ functional competency and satisfaction.
The Department of Consumer Affairs, Ministry of Consumer Affairs, Food and Public
Distribution, Government of India in association with the Centre for Consumer Studies,
Indian Institute of Public Administration, New Delhi has brought out a Consumer Handbook
which is an endeavour to provide answers to common consumer questions and empower
them with practical tools to resolve their consumer problems. This Handbook contains
useful consumer information, which can help consumers to protect their consumer rights
and get value for their money. We acknowledge the use of material from various sources
particularly internet and publications of various departments / organisations. We do not
claim any copyright on such material. This has been used only to provide full information
to the consumers.
We are grateful to Shri Keshav Desiraju, Former Secretary, Department of Consumer
Affairs; Shri G. Gurucharan, Additional Secretary, Department of Consumer Affairs;
Shri Manoj Kumar Parida, Former Joint Secretary, Department of Consumer Affairs and
other Officers for their valuable inputs and support they extended in preparation of this
Handbook. We are also thankful to Shri Anil K. Gupta, from Publication Section, IIPA for
getting the Handbook printed in time.
Dated: June 22, 2015
Place: New Delhi
Suresh Misra
G.N. Sreekumaran
Sapna Chadah
(vii)
TABLE OF CONTENTS
PAGES
Message iii
Foreword v
- Need of Consumer Protection Preface vii
- Who is a Consumer?
- Who is not a Consumer?
- What are Goods?
- What is a Defect?
- What are Services?
- What is Deficiency in Service?
- What is Unfair Trade Practice?
- What is Restrictive Trade Practice?
- United Nations Guidelines for Consumer Protection
- Consumer Protection in India
- The Constitution of India and Socio-Economic Justice
- Consumer Protection Act- A Milestone
- What are the rights guaranteed under the Act?
- What are Consumer Protection Councils?
- What are Consumer Disputes Redressal Agencies?
- When can complaint be made?
- Who can file a Complaint?
- Where to file a Complaint?
- What is the Jurisdiction of Consumer Fora?
- Is there any Fee for filing Complaint?
- Is there any exemption from payment of Fee?
- How to file a Complaint?
- What is the Procedure to file complaint in Consumer Fora?
- Is there a need to engage a lawyer for filing a complaint in the fora?
- What are the particulars that should be furnished along with the complaint?
- What is the time limit for filing a complaint?
- What is the provision for appeal?
- What are the Reliefs available to Consumers from Consumer Fora?
- Which is the Nodal Agency for Consumer Protection?
- Do you know?
- Consumer Complaints and Grievance Redress
- Where can Consumer get authentic information and counselling?
- National Consumer Helpline
- Where can consumers get information and guidance in local language?
- State Consumer Helplines
- What is State Consumer Helpline Knowledge Resource Management Portal?
- What is Mediation? How Disputes can be resolved through Mediation?
- What are the Benefits of Mediation?
- What is Grahak Suvidha Kendra?
- Quality Assurance
- How can a consumer assess the quality of a product before purchase?
- What are Standards?
- Is it mandatory for all manufacturers to adopt Indian Standards?
- How does a consumer identify products conforming to Indian Standards?
- What is ISI Mark?
- How to lodge a complaint about a Marked Product?
- What is Hallmarking?
- Who operates the Hallmarking Scheme?
- What one should look for in a Hallmarked gold article?
- How much does it cost to get a gold article hallmarked?
- How much does it cost to get a silver article hallmarked?
- What is AGMARK?
- What are Vegetarian and Non-vegetarian Marks?
- What is ISO Mark?
- What is Silk Mark?
- What is Woolmark?
- What is Hologram?
- What is Handloom Mark?
- What is Ecomark?
- What is Recycling Mark?
- What is BEE Label?
- What is significance of FSSAI Logo?
- Maximum Retail Price
- MRP -What does this mean?
- Mandatory Declaration on Packaged Commodities
- What must a consumer look for on the packaging of the commodity bought?
- Misleading Advertisements
- What is a misleading advertisement?
- What are the types of misleading advertisements?
- What are the existing laws dealing with misleading advertisements?
- Who have the power to regulate advertising in their respective domains?
- Who regulates misleading advertisements and how does it function?
- Is ASCI a Government Body?
- How can a Consumer make a complaint against misleading ads?
- Where can a consumer complain?
- How does ASCI protect the confidentiality of the complainant?
- Does a complainant has to make any payment to register a complaint?
- What relief a consumer can get if he files a case in Consumer Forum?
- Where can consumer complain for programmes/shows being broadcast on
- Which broadcasters are within the scope of BCCC? TV channels?
- How to make a complaint?
- Can I file a complaint directly before BCCC?
- What is the timeline for disposal of a complaint by BCCC?
- How is a Complaint decided by the BCCC?
- Does the mechanism cover films and movie videos?
- Aadhaar
- What is Aadhaar?
- Which is the regulatory body for Aadhaar?
- Who is eligible for Aadhaar?
- Is Aadhaar a smart card?
- Is it compulsory to enroll for Aadhaar?
- What is the fee charged for enrolling for Aadhaar?
- How can I enroll for Aadhaar?
- What are the documents required for Aadhaar enrolment?
- Where can I contact for any query or complaint?
- What is the use of Aadhaar Number?
- Food Safety and Standards Authority
- What is Food Safety and Standards Act, 2006?
- Who is the Regulatory Authority under the FSS Act?
- What is the composition of the Food Authority?
- What does FSSAI do?
- How consumers are benefitted by FSS Act?
- Which agency investigates food borne illness and foreign object complaints?
- How FSS Act will curb increasing food adulteration?
- Who is the responsible authority for enforcement of FSS Act in States?
- What are GM foods and organic foods? Does FSSAI provide regulations for such
- What is a food recall? What is its purpose? type of foods?
- How can consumer complain about food bought from a shop or restaurant?
- How do I report a potential food safety incident?
- Where can one obtain information on food safety?
- Consumer Beware
- Adulterants in Common Food Items
- Tips for Smart Consumers
- Online Shopping
- Before you sign a contract
- If you encounter a problem, what you should do?
- What can you do to protect yourself?
- Consumer Responsibilities and Sustainable Development
- Right to Information Act,
- What is Information?
- What information can be obtained under the RTI Act?
- What is the Fee for seeking Information?
- Swachh Bharat Abhiyan
- Swachh Bharat Abhiyan and Sustainable Development
- Regulators
- What is the need of Regulators? How they can help consumers?
- Regulators in India
- List of Consumer Disputes Redressal Agencies
- National Consumer Disputes Redressal Commission
- State Consumer Disputes Redressal Commissions
- Useful Contact Addresses and Telephone Numbers
- Important Links
Consumer Handbook 1
NEED OF CONSUMER PROTECTION
Consumers play a vital role in the economic system of any nation. Consumers are the key players in the market place and their consumption patterns greatly influence the society and the economy. In the modern philosophy of marketing, consumer is supposed to be the ‘king’ and business is expected to provide maximum possible satisfaction to consumers. Technology has made available a variety of goods and services to the consumers from all over the world, which are only a click away. New products and services throng the market every day, many of which disappear very soon. Coupled, with the revolution in information technology the consumers are facing new challenges, such as cyber-crime, plastic money, unsustainable consumption, global warning etc., which affects them in a number of ways. The consumer who is referred to as ‘king’ is actually a ‘victim’ of the market malpractices. Producers and sellers have only one motto; to maximize profit by engaging in all sort of deleterious practices and producing products that do not meet acceptable quality standards. In order to maximize profits, many businessmen exploit consumers by supplying poor quality goods at higher prices. Consumers are exposed to physical, environmental and other hazards. As a result consumers do not get value for their money. The Industrial revolution and the development in international trade and commerce has led to vast expansion of business and trade. As a result, a host of services have been made available to the consumers like insurance, transport, electricity, housing, entertainment, finance and banking. A well-organized sector of manufacturers and traders with better knowledge of markets has come into existence, thereby affecting the relationship between the traders and the consumers making the principle of consumer sovereignty almost inapplicable. The advertisements of goods and services in television, newspaper and magazines influence the demand for the same by the consumers though there may be manufacturing defects, imperfections, or shortcomings in the quality, quantity and the purity of the goods or there may be deficiency in the services rendered. For the welfare
Consumer Handbook 3
in force or under any contract, express or implied, or as is claimed by the trader in any manner whatsoever in relation to any goods.
What are Services?
“Service” means service of any description which is made available to potential users and include, but not limited to, the provision of facilities in connection with banking, financing, insurance, transport, processing, supply of electrical or other energy, board or lodging or both, housing construction, entertainment, amusement or the purveying of news or other information, but does not include the rendering of any service free of charge or under a contract of personal services.
Contract of Service – It implies a relationship of a master and servant and involves to obey the order in the works to be performed and as to its mode and manner of performance. This does not come within the purview of CP Act. Contract for Service – It implies a contract whereby one party undertakes to render services e.g., profession or technical services to or for another in the performance of which, he is not subject to detailed direction and control but exercises professional skills and uses his own knowledge and decisions.
What is Deficiency in Service?
“Deficiency” means any fault, imperfection shortcoming or inadequacy in the quality, nature and manner of performance which is required to be maintained by or under any law for time being in force or has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service.
What is Unfair Trade Practice?
An “unfair trade practice” means a trade practice, which, for the purpose of promoting any sale, use or supply of any goods or services, adopts unfair method, or unfair or deceptive practice.
Some of these practices include:
Æ False Representation
- When goods and services are not of stated standard, quality or grade;
- When second hand, renovated goods are sold as new ones;
4 Consumer Handbook
- When the seller does not have the required sponsorship, approval, affiliation;
- When goods and service do not have the claimed use, usefulness or benefit;
- When products / services do not have the claimed warranty / guarantee;
Æ When the price of product or service is misleading.
Æ False and Misleading Advertisement of selling at Bargain price.
Æ Offering gifts, prizes, etc. to lure customers with no intention of providing them.
Æ Selling goods which do not fall within the safety standards set up by competent authority.
Æ Hoarding or destroying goods with the intention of raising the cost of these or similar goods manufactured in greater number so as to manipulate higher prices.
Æ Manufacturing or offering spurious goods or adopting deceptive practices in the provision of services.
Do you know?
6 Consumer Handbook
maintain a strong consumer protection policy, taking into account the guidelines. In doing so, each Government should set its own priorities for the protection of consumers in accordance with the economic, social and environmental circumstances of the country and the needs of its population, bearing in mind the costs and benefits of proposed measures. The guidelines (as expanded in 1999) are intended to meet the following needs:
(a) Protection of consumers from hazards to their health and safety;
(b) Promotion and protection of the economic interests of consumers;
(c) Access of consumers to adequate information to enable them to make informed choices according to individual wishes and needs;
(d) Consumer education, including education on the environmental, social and economic impacts of consumer choice;
(e) Availability of effective consumer redress;
(f) Freedom to form consumer and other relevant groups or organizations and the opportunity of such organizations to present their views in decision-making processes affecting them;
(g) Promotion of sustainable consumption patterns.
CONSUMER PROTECTION IN INDIA
Historically consumer welfare dates back to the Vedic Age. Four broad types of criminal offences were prominent in the ancient period: adulteration of food stuff, charging of excess prices, fabrication of weights and measures, and sale of forbidden articles. For these offences statutory measures were recommended from time to time by the leading texts of the time.
- Manusmriti advocated severe punishment for unfair business practices.
- To deal with faulty weights and measures the manusmriti provided that all weights and measures must be duly marked by the king and should be re-examined every six months. - Manusmriti explains that it was obligatory on the king to fix the rates for the purchase and sale of all marketable goods and the fixation of price by the king was to be made public.
Consumer Handbook 7
- In Kautilya’s Arthashastra consumer protection occupies a prominent place. It describes the role of the State in regulating trade and its duty to prevent crimes against consumers.
- To protect the customer from the excessive prices charged by the traders, it was provided that the state declares the rates for the purchase and sale of all marketable commodities in order to protect the customers from arbitrary exploitation by the traders.
- Adulteration was recognized as an offence in Arthashastra and punishment for same was specified. Adulteration of grains, oil, medicine, perfumes, salt, sugar attracted severe penalty.
- Traders who during the purchase and sale raised the price or secured an extra profit of five percent beyond the limit fixed by the state were heavily fined.
- If the merchants conspired to raise the prices of the commodities at their own will they were severely dealt with. - Arthashastra expresses two other key areas concerning consumers- regulation concerning sale of animal flesh; and obligation of professionals like artisans, craftsmen, washermen, weavers, goldsmith, actors and physicians.
