CONSUMER PROTECTION
UNIT 4: Recent Developments and Consumer Empowerment
Recent Developments in Consumer Protection Movement
Recent developments in the consumer protection movement include the enactment of the Consumer Protection Act, 2019, which replaced the 1986 Act and strengthens consumer rights, particularly in the context of e-commerce.
- Enactment of the Consumer Protection Act, 2019: This act modernized consumer protection by addressing the challenges posed by globalization, online platforms, and e-commerce.
- Establishment of the CCPA: The CCPA, established in 2020, is responsible for enforcing consumer rights, regulating unfair trade practices, and addressing misleading advertisements.
- Guidelines for Misleading Advertisements and Endorsements: The CCPA's guidelines require endorsers to exercise due diligence when endorsing products, ensuring that endorsements reflect genuine opinions and are based on adequate information.
- Consumer Protection (E-commerce) Rules, 2020: These rules specify the responsibilities of e-commerce entities and outline liability for both marketplace and inventory e-commerce platforms.
- Guidelines for Prevention and Regulation of Dark Patterns: The CCPA's guidelines address and regulate 13 specific dark patterns identified in e-commerce, aiming to prevent deceptive practices that mislead consumers.
- Focus on E-commerce: The new act and regulations explicitly address e-commerce transactions, recognizing the growing importance of online consumer protection.
- Enhanced Enforcement: The CCPA has the power to investigate violations of consumer rights, issue orders, and impose penalties on those engaged in unfair trade practices or misleading advertisements.
- Emphasis on Consumer Grievance Redressal: The Consumer Protection Act, 2019 includes provisions for customer grievance redressal within the e-commerce framework.
- Landmark Judgments: The Supreme Court and High Courts have also issued judgments that further strengthen consumer rights, particularly in areas like service quality and product liability.
Consumer Information and Knowledge as Means of Protection
What is Consumer Information and Knowledge?
It refers to the awareness and understanding that consumers have about their rights, responsibilities, product details, pricing, quality, warranties, and grievance redressal mechanisms. Informed consumers are less likely to be misled or exploited.
Why It's Important for Protection
- Reduces Exploitation: Informed consumers are less vulnerable to deceptive marketing or poor-quality products.
- Enables Comparison: Knowledge helps consumers compare different brands, features, and prices.
- Promotes Assertiveness: Empowers consumers to question unethical practices or reject faulty goods.
- Enhances Participation: Encourages consumer participation in regulatory feedback, complaints, and civic activism.
Examples
- A consumer who knows how to check ISI mark, MRP, or expiry date will avoid purchasing unsafe or overpriced goods.
- Awareness of Consumer Protection Act, return policies, or online complaint portals like E-Daakhil ensures better redressal.
Sources of Consumer Information
Consumers can access information from formal and informal sources to make informed decisions:
a) Government Sources
- Ministry of Consumer Affairs: Offers updates on consumer rights and legal frameworks.
- Jago Grahak Jago Campaign: Provides advertisements, videos, helplines, and FAQs.
- Bureau of Indian Standards (BIS): Publishes product standards and safety information.
b) Regulatory Bodies
FSSAI (Food), TRAI (Telecom), SEBI (Securities), RBI (Banking): Provide safety regulations and alerts.
c) Media
Newspapers, television shows, YouTube reviews, consumer-focused magazines (e.g., Consumer Voice). Investigative journalism can expose scams or faulty products.
d) Online Platforms
Official websites of brands, e-commerce portals, review websites, and comparison tools. Social media posts, influencer reviews, and public ratings.
e) Consumer Organizations
Publish research reports, product testing results, and safety guidelines. Conduct awareness programs and legal literacy campaigns.
f) Product Labels & Packaging
Information on ingredients, usage instructions, warnings, certifications (e.g., ISI, AGMARK, ECO mark).
Ethical Marketing as an Instrument of Consumer Protection
What is Ethical Marketing?
Ethical marketing refers to the promotion and selling of products in a truthful, transparent, socially responsible, and consumer-friendly manner.
Principles of Ethical Marketing
- Honesty in Advertising: Advertisements should be truthful and not mislead consumers with exaggerated or false claims.
- Transparency in Pricing: All costs must be clearly mentioned without hidden charges, allowing consumers to make informed decisions.
- Respect for Consumer Rights: Marketers must honor consumer rights such as safety, choice, information, and grievance redressal.
- Fair Competition: Businesses should avoid defaming competitors or using unethical tactics to gain market advantage.
- Social Responsibility: Marketing should promote socially beneficial values and avoid encouraging harmful or unethical behaviour.
How It Protects Consumers
- Prevents misleading advertisements or hidden charges.
- Encourages honest product claims (no exaggeration).
- Supports data privacy and avoids manipulative tactics.
- Promotes responsible targeting (e.g., avoiding children for harmful products).
- Builds long-term trust between brand and customer.
Example
A company not exaggerating the health benefits of a product or clearly stating side effects supports ethical marketing.
Role of Advertising Standards Council of India (ASCI) in Consumer Protection
What is ASCI?
ASCI is a self-regulatory voluntary organization established in 1985 to ensure truthfulness and fairness in advertising across India. It is not a government body, but it works closely with ministries and regulatory authorities.
Functions of ASCI
- Monitoring Advertisements: Identifies misleading, offensive, or false ads across media.
- Handling Consumer Complaints: Consumers can file complaints via ASCI's website, WhatsApp, or app.
- Advertising Code Enforcement: Ensures compliance with ASCI's Code for Self-Regulation in Advertising.
- Consumer Awareness: Educates consumers about their rights against misleading ads.
How ASCI Protects Consumers
- Takes down false or exaggerated claims: E.g., weight loss ads, fairness creams, fake testimonials.
- Protects children from harmful ads: Ensures that children are not exposed to inappropriate marketing.
- Supports fair advertising practices: Influences brand behaviour and holds companies accountable.
Example
If a health drink claims to make children taller and smarter without scientific evidence, ASCI can ask the company to modify or withdraw the ad.
