Consumer Complaint, Consumer Rights In India

:: Media Coverage::

NBAI (National Bar Association of India ) members discuss the key agenda of Budget 2013

"Scams which have come in light only exemplify the malpractices at top level” says Ram Jethmalani“

Explaining the need of consumer protection law Mr. Bejon Mishra, a pioneer in consumer protection movement in India said, while there are lots of policies made to protect the rights of consumers, they fall miserably when it comes about deliverables. The objective behind such law is to make consumer stronger and provide them with a suitable tool to fight for their rights.

8th March, 2013 New Delhi: “Lawyers have lost the courage to speak the truth and this has turned out to be the biggest problem of Indian legal system. Corruption has increased manifold in almost every walk of life over the past few years and a series of scams which have come in light only exemplify the malpractices at top level. Now the time has come when lawyers must speak the truth whenever it is required” these were the views of Mr. Ram Jethmalani, which he opined during the seminar of National Bar Association of India.

The seminar was organized on 8th March in the capital to discuss the key issues of Budget 2013 and ethics in legal profession. A broader range of issues such as taxation, General Tax Anti-avoidance Rule (GAAR), challenges before Indian economy and ethics in Indian legal system were discussed during the event.

Initiating the discussion, Mr. Krishan Malhotra, Head of taxation of Northern Region at Amarchand Mangaldas and Shroff and company, India’s largest law firm, presented a graphic presentation on the direct taxation policy of government of India while, he also briefed the delegates about the GAAR and tax policy of India viz. a viz. international norms.

Addressing the delegation Sujit Ghosh, expert of taxation said, “budget this year was meant to appease the people as it was a budget year and it was no surprise that Mr. Chidambaram had very little to offer in terms of economic revival. The government could have reduced the tax to increase the consumption and boost the demand but it did not happen as the government was left with very little headroom given the pessimistic environment of economy.”

Delivering a concluding address, Dr. Subhash Kasyap said, “bars once used to stand for truth while now they seems to have lost this objective as it lacks the courage to speak the truth.” He also briefed delegates about National Bar Association while suggesting several ways to improve the state of Indian bars and the way they practice.

PRESS RELEASE by Shri. Bejon Misra , Founder , Consumer Online Foundation, WORLD CONSUMER RIGHT's DAY ( 15th March 2013)

NEW DELHI: Despite giving a legal face to the Indian Consumer by legislating the ‘Consumers’ Protection Act 1986’ (CPA) 25 years ago, only a small fraction of consumers in India are aware about their rights and in the absence of effective government mechanisms and deterrent action against unfair trade practices, the Indian consumers are deprived of their basic needs and speedy justice, according to a report published by Consumer Online Foundation, a leading consumer organisation in India. In 1986, when all the parliamentarians cutting across party-lines agreed to empower the Indian consumer on 24th December 1986, with one voice said that if India has to be part of the developed world, they have to support and encourage a strong consumer movement in India. "The Hon'ble Prime Minister of India Shri Rajiv Gandhi confessed this to the consumers organisations when we all met him to congratulate him for this landmark legislation in the interest of the consumers" said Mr. Bejon Misra, Founder of the Consumer Online Foundation and an International expert on Consumer Protection Policies for more than 30 years.

In a Press Release issued on the eve of World Consumer Right's Day, Mr. Bejon Misra, Founder of the Foundation has further pointed out that whether it is faulty products causing injury, utility service providers ignoring complaints, or irresponsible lending by banks, better consumer protection is always part of the solution. In India Consumer Protection Policies are less prevalent in comparison to advanced countries – having percentage ratio of between 80-90% deficient.

On 15 March 1962, President John F Kennedy gave an address to the US congress in which he formally addressed the issue of consumer rights. He was the first world leader to do so, and the consumer movement now marks 15 March every year as a means of raising global awareness about consumer rights. While making his historic address to the US Congress in which he outlined his vision of consumer rights said: "Consumers by definition, include us all,' Kennedy said in his Congressional Statement, 'They are the largest economic group, affecting and affected by almost every public and private economic decision. Yet they are the only important group... whose views are often not heard.' How true it is even today and again the day will pass-off with superficial pledges and false promises to the consumers in India and not even one political party will demonstrate their commitment towards the Rights of the Consumer.

On announcing World Consumer Rights Day (WCRD) 2013, Consumers International (CI) Director General Helen McCallum said: "Good consumer protection is not just about legislation, it can deliver justice, create a fairer society and even save lives." "The decision to update the UN Guidelines gives us the first opportunity in over a decade to raise the standards of consumer protection around the world. I'm sure all CI members and supporters will want to join together to make this one of the biggest World Consumer Rights Day we have ever had." The theme for this year is "CONSUMER JUSTICE NOW"

The country therefore needs the effective legislation in place coupled with war footing measures and intensive efforts to bring justice and protection for all consumers and especially women, feels Mr. Misra.

Despite several consumer awareness initiatives organized by the Ministry of Consumer Affairs, Government of India, the involvement and participation of Indian consumers on the critical issues and concerns are very low compared to USA and European countries where majority of consumers are associated with the NGOs on a large scale.

The Foundation has suggested that any legislation or policies needs to be revised on the regular basis in view of current scenario impacting the consumers and important issues like bans on unsafe goods, drugs, mandatory standards and labeling in each products, coordination between Central Government and the State Governments should be further strengthened to ensure all the State Commissions and the District Forums under the provisions of the Consumer Protection Act 1986 are made functional. More than 400 vacancies are to be filled by competent members and more than 200 District Forums are none functional in India. If this is the existing mechanism in India, you can well imagine the plight of the consumers in India in terms of fair and safe future.

Rich counties, transitional economies and the developing world can all benefit from improvements in consumer protection. WCRD 2013 will be about bringing attention to areas that are desperately in need of improvement.This theme has also been chosen to coincide with the update of the UN Guidelines on Consumer Protection (UNGCP). CI will be working with its members to feed in proposals on how the Guidelines can better address the concerns of today's consumers.The UNCGP, first agreed in 1985 and last updated in 1999, is an international reference point for the consumer rights movement and CI will be supporting new provisions on issues such as financial services, energy and consumer representation. Securing the UNGCP was a major victory for the global consumer rights movement. However, the advance of technology and changing business practices have created many new challenges that did not apply when the UNCGP was first drafted. The internet, for example, was still many years away. The challenge is to bring the UNCGP up to date and make it relevant for today's consumers. The UNGCP revision process will be completed in July 2014. WCRD was established in 1983 to promote the basic rights of consumers everywhere. Every year on 15 March, the global consumer movement unites around a common theme to deliver an exciting array of campaigning activities. WCRD 2013 will be an important opportunity for consumer organisations to draw the world's attention to the crucial role that consumer protection plays in making societies safer and fairer, and how important it is that 21st Century consumers receive 21st Century protection.

Consumer Online Foundation also observed that government and consumer organsations needs to prioritize the issues and concerns for the next 5 years and draw-up a plan to ensure speedy redressal and a fair marketplace for the voiceless consumers. "Apart from the traditional issues, some sector specific issues related to banks & financial institutions, real estate, drugs, telecom services and others needs to be considered to be brought under fast-track redressal mechanism, said Mr. Misra.

Finally, the ongoing consumer awareness programmes should target the rural masses as they have lesser knowledge about such government initiatives and the participation level of Indian consumers should be on par with international consumers. The "JAGO GRAHAK JAGO" the multimedia campaign launched by Government of India in 2005 should now become more visible and encourage consumers to demand quality goods and services based on world best standards.

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Seminar on “Curbing Counterfeiting and Smuggling – An Imperative for Indian Economy”, at Srinagar on 13th September, 2012

FICCI CASCADE as a part of its state campaign organized a seminar on ‘Curbing Counterfeiting and Smuggling – An Imperative for Indian Economy’ at Srinagar for generating awareness among the consumers and calling for launching sustained public campaign to enlarge awareness among the people of J&K about the criminal offences involved in counterfeiting, smuggling and other organized crime which adversely affect the rights and interests of individuals. The seminar focused on the effects of counterfeiting which damage the interests of producers, manufacturers and traders, cause loss of revenue to the public exchequer, and pose a serious threat to the security of the State and the country. The Chief Guest, Governor Jammu and Kashmir Mr. N. N. Vohra, inaugurated the seminar. In his welcome address Mr. Hamid Punjabi, President, Kashmir Chambers of Commerce, said that this Seminar is of immense importance as it would help in enlarging awareness among all the stakeholders as how to curb the production and use of counterfeit products. He said that Kashmir handicrafts products have become worst victims of counterfeiting and sought the support of FICCI-CASCADE in this regard. Further Mr. Deep Chand, Advisor, FICCI-CASCADE, giving global and the country-specific facts and figures vis-à-vis counterfeiting, said that the magnitude of the problem is very serious. He put forth several suggestions to deal with this problem, which include bringing down to a reasonable level the prices of branded products. The Governor congratulated the FICCI-CASCADE and the Kashmir Chambers of Commerce and industry for joining hands to deliberate on such an extremely important problem. He observed that over 12 million tourists and pilgrims visits the State and even if a small percentage of the visitors are cheated and sold spurious goods there would be damage to the reputation of the State as the most attractive tourist destination. In this context, he stressed that all the stakeholders have to play an important role to ensure that they buy and sell only genuine goods. He added that, it is equally important to ensure that all the relevant laws are most strictly enforced against those involved in the manufacture and trade of counterfeit products, causing loss of revenue to the exchequer and the State. The Governor further observed that the huge unlawful funds which accrue from smuggling, fake currency are utilized by organized crime groups and mafia networks to foster illegal trade in arms and drugs and fund terrorist activities generating serious security issues worldwide. The Governor expressed the hope that the seminar will culminate with a set of recommendations which would go a long way in curbing counterfeiting, smuggling and other organized crime.
Mr. Aga Syed Ruhullah Mehdi, Minister for Science and Technology and Information Technology, complimented FICCI for organizing in the State a Seminar on a very relevant subject to enlarge awareness among the people against counterfeiting and smuggling. He observed that the counterfeit products not only cause loss to the State exchequer but the consumers also do not get the genuine products. Mr. Tobby Simon, President, Synergia Foundation presented the facts and figures of the counterfeit in various industries and it’s affect on the industry and national security. He mentioned that the terrorist groups like Al- Qeda are now raising money by indirectly getting into the counterfeit trade and hence by destroying the supply chain integrity they are causing a threat to national security. Mr. Shujat Bukhari, Editor, Rising Kashmir said that contraband and counterfeit product manufacturers hurt the integrity of the brand, further diluting the brand owner’s reputation. He further pointed out that the media should be more aware and sensitized towards the issue and highlight the problem which would help generate awareness among public at large. Justice, B A Kirmani appealed to media to highlight such issues so that people can come to know about this counterfeiting. He said that the media gives enough space to film actors and entertainment but the issues related to people are being neglected. Mr. Bejon Misra Director, The Partnership for Safe Medicines India pointed out that the fake and counterfeit medicines have a direct impact on the health and safety of consumers, with the use of technology one can trace and track the counterfeit and maintain the supply chain integrity. Mr. Abdul Ghani, Inspector General J&K Police lamented that such elements roam freely just because of lack of coordination between different law enforcing agencies. He mentioned that it is pity that there are too many laws and law enforcing agencies which lack coordination. Thus the seminar came to an end where after a detailed discussion on the problem and the issue of counterfeiting, the dignitaries applauded the effort or FICCI CASCADE to have touched upon such a vital issue and its effort to bring the important people from all the fields together to address the issue. The common consensus of the gathering and the dignitaries was that the need is to create awareness and that this beginning should not be an end, all stakeholders and public in general should join hands in the campaign towards eradicating this evil from the society.

Seminar on ‘Curbing Counterfeiting and Smuggling – An Imperative for Indian Economy

REACTION OF BEJON MISRA, FOUNDER, CONSUMER ONLINE FOUNDATION
ON TRAI’S PRESENTATION TO EGOM
New Delhi, July 13, 2012

We acknowledge the TRAI Chairman’s concern for the consumers of this country. We are happy that our plea has been taken into consideration by ensuring that Dr. Rahul Khullar, Chairman, TRAI has for the first time made public the recommendations presented to the EGoM yesterday by hosting the document on the website and demonstrated transparency in the consultative process. We find that he has taken adequate steps wherein we recommended the regulatory authority to stop cartelization of telecom operators and to ensure that spectrum pricing will have no impact on consumers. Consumer Online Foundation along with several other leading consumer groups had given a representation to TRAI Chairman on July 11, 2012 where the regulatory authority assured that they shall intervene to ensure that consumer’s interest is protected.
We are delighted that our suggestions have been taken into consideration and the impact of spectrum pricing will have no unreasonable burden on the consumers. During our meeting, we requested the authority to check that there is no unjustified price rise in the market and while the industry gains from the spectrum, the consumers must not be left behind. We made a recommendation that the price rise should be within an affordable limit and should not become a hindrance for the consumers, especially the 96% consumers who are pre-paid customers of telecom today in India, who have found the technology extremely useful, user friendly and productive in their daily life.
The Consumer groups shall ensure that the right price prevails in the market which is competitive, affordable and accessible.

For more details contact:
Bejon Misra
Founder, Consumer Online Foundation
+91-9811044424, bejonmisra@consumerconexion.org

Sumeet Sawhney
GreyMatters Communications & Consulting
+91-9911444011, sumeet@thegreymatters.in

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Telecom must ring in transparency

The consumers' perspective is not sufficiently heard by the regulator and the policy-makers. This can be corrected only if there are public hearings based on ensuring people’s participation, writes Bejon Misra

Being associated with various consumer organisations that work closely with mobile users at the grassroots level, I have experienced first-hand the sterling role played by mobile phones in enhancing connectivity and, through connectivity, galvanising economic activity at all levels.

Such transformation has led to hitherto unheard of accessibility of mobile telephony and affordability of call rates, thereby demonstrating the benefits of such friendly technology in empowering the consumers and transforming their lives in a myriad ways, ranging from increasing family ties to being a business tool for the self-employed, bringing quality healthcare at the doorstep through telemedicine, to the lowest economic strata of society. In my view, nothing should be done to make even a dent in this accessibility and affordability. If these are tampered with, it would lead to irreparable damage to the consumer, the voiceless cluster in India today called the aam aadmi.

The Government and regulator should see mobile telephony as a GDP multiplier instead of a means of raising revenue through one-time sale of licences and spectrum. The latter would be a short-sighted expedient. On the other hand, if mobile telephony is seen as a facilitator of economic activity, the Government is very likely to raise far more resources through indirect taxes over a longer period of time.

The past few months have seen many developments in the telecom sector, and at this point the Government is on the threshold of taking decisions that will determine the shape of telecommunications in India for decades to come. Unfortunately, in the entire decision-making process relating to spectrum allocation and pricing, consumer’s interest have received short shrift. Of all the stakeholders in this entire equation — the Government, industry and consumers — the first two appear to have had adequate say. In comparison, the voice of the consumer has received insufficient hearing and never the recognition it deserves. And yet, it cannot be denied that in a country with more than 900 million mobile phone users, consumer interests deserve primacy in the entire debate.

Consumers the world over, including India, have been of the considered view that there should be transparency in the entire decision-making process. This is particularly important from the consumers’ point of view and the present challenges have once again raised the need for consultations with consumers. Presently, the industry, the Government and the regulators appear to be talking to each other and apprising each other of their respective positions on relevant issues, but without involving the consumer. Both unfortunately are acting at the expense of the consumers when the latter must be at the core of their concerns and should be consulted at each step.

This has led to an undermining of the rights of the consumer by both, even as they profess to be acting in the consumers’ interest. The consumers’ perspective is not sufficiently heard by those that should hear it the most — the regulator and the policy-makers. This lacuna can be filled only if there are public hearings based on ensuring participation, rather than just inserting advertisements at phenomenal costs to show that the process has got completed irrespective of their participation. The Telecom Regulatory Authority of India has had one round of such public hearings. There is a need for many more such public hearings all across India, especially in remote locations like the North-East and the Andaman & Nicobar Islands. This is an ideal way of providing a platform to consumers, consumer organisations and other stakeholders to voice their views in the rightful and intellectual manner rather than just a white-wash.

We feel proud of the fact that with more than eight operators in various telecom circles, India has one of the lowest call rates around the world. From Rs 15 per minute in 1999, competition in the telecom sector has brought down call rates to 30 paise per minute. This access to affordable telecom has empowered the citizens in many ways, leading to more inclusive growth. Close to 900 million citizens of the country are now part of the telecom revolution, and this number is growing every day. It is competition that has driven down rates and given the consumer a choice.

Even as the Government attempts to raise revenue from the sector, competition should be encouraged, whether it is through lowering the reserve price for spectrum, or ensuring a level playing field for all operators. The Government should protect consumer interests by ensuring fair competition and tariffs and ensuring that the process is always transparent and accountable.

As citizens of the country, who deserve and demand continued access to quality telecom services at affordable prices, we urge the Government not to take decisions which will further burden the already burdened consumer. The country deserves a policy that is transparent; one that will enable the country to grow and prosper.

SOURCE: Daily Pioneer

FOOD SAFETY AND STANDARDS AUTHORITY OF INDIA – Mr. Misra’s interview to FnB News

“I do not feel FSSA, 2006, is within the priority of our present government”
Monday, December 26, 2011
Irum Khan, Mumbai

The Food Safety and Standards Authority of India had been assigned with the implementation of a science-based uniform food law in the country that repealed several other laws and brought the industry under one umbrella—Food Safety and Standards Act. However, the FSSAI had to meet with a number of impediments even before it started to sail, a chat with Bejon Misra, consumer expert and member, FSSAI, throws more light on the issue

Tell us about your role in the FSSAI.
I was made a member of the Food Safety and Standards Authority of India in the year 2008, when it was formed and founded for the first time as the new law "Food Safety and Standards Act 2006." I was representing the interest of the consumers within the FSSAI.

What are the consumer concerns you have presented to the Authority and the outcome of your action?
Well, these would be:
a. Empowering consumers to demand safe and quality food through effective communication initiatives and making public the "Citizens’ Charter of FSSAI Consumers" to ensure accountability and transparency in its working.
b. Resources to be provided to registered consumer organisations with good track record to organise consumer education programmes.
c. A robust tracing and tracking system to alert consumers on food contamination and unhealthy food.
d. Strong labelling information on the GMOs and other harmful additives and ingredients as prescribed in the law. The outcome has been that work has started in all the four issues but no tangible results in the interest of the consumer till date have taken place and we are still struggling to make these issues a tangible reality in India.

What has been the biggest achievement of the FSSAI so far?
A structured office with a secretariat, several consultations and meetings with the various stakeholders including participation by the FSSAI officials at various events in India and overseas Codex Committee meetings…

Is the leadership strong enough to bring about the intended reforms?
I do not feel FSSA (Food Safety and Standards Act, 2006) is within the priority of our present government. We do not have a chairperson for more than six months and there has been a complete disconnect between the policy-makers and the implementation authority. The state governments are yet to wake up on the new law and its implementation and the Central government is unable to mobilise the support from the states on its prompt implementation. After five years the rules have got finally notified and the rollout plan seems unclear and direction-less.

Are there any difficulties in setting up the required machinery / infrastructure and pooling resources in bringing about the implementation of the Act?
Yes, lack of strong leadership with a commitment and passion for reforms in the food standards and its implementation programme. The biggest difficulty is lack of right kind of resources and involvement of technically competent experts on the subject who have the time to work at the district level of our country in an unbiased manner in the interest of all the stakeholders. We must create good models at the state level and encourage good players from the food industry who demonstrate best practices in the interest of the consumer.

Do you think members and the Authority as a whole have the right spirit to inculcate a culture of food safety in the industry and the masses?
The involvement of the members is only confined to the three meetings during the year and invitation to some events or seminars. The members selected within the Authority are experts on their respective clusters but unfortunately their involvement is not as desired because of lack of motivation and proper working processes. Of course, the members could have done much better if the FSSAI governance would have been more efficient and effective. Lots can be achieved, only if the processes are made accountable and transparent.

Would you call the Act industry-friendly or consumer-friendly? Why?
The law is excellent in its present form but could be made more consumer-friendly by strengthening the rules on enforcements and prompt redressal on complaints and violations with deterrent penalties to ensure effective implementation of the existing law.

The Authority has been questioned for delaying the implementation of the Act. Do you agree that procedural delays could be avoided?
Yes, I agree. The implementation of the Act has got delayed beyond acceptable timeline. Of course they could have been avoided provided the chairman was more independent and was given a free hand to ensure he could select his own team and work in a manner which would provide the best results. The FSSAI should get insulated from political and bureaucratic interference. The Authority should meet more regularly and be free to use the public resource in an efficient and transparent manner.

FSSAI is completely an autonomous body. However, the Supreme Court had to intervene several times...Is there a need to have a watchdog to monitor its functioning? Why?
As I mentioned, we do not need to create another body to become a watchdog to FSSAI. We have scarce resources in our country and already have several watchdogs like CAG (Comptroller and Auditor General) and others. What we need is an independent working culture with clear accountable processes and active involvement of the members on a day-to-day basis to ensure the secretariat is working in an efficient and effective manner. We have to bring best management practices and learn from other countries which have similar regulators. We have enough bodies in our country as regulators or watchdogs, which are expensive and a burden to the consumers. What we need is lean governance with efficient outcomes in the interest of all the stakeholders.

Do you think we have a competitive team in terms of scientific panels and committees to bring in regulatory reforms for the industry?
I cannot comment on this because I have really not studied this aspect yet but I am happy that these committees are now devoid of representatives from industry who are still on their roles or engaged as consultants. All such committees should have neutral and competent persons of repute to bring reforms in the food sector in India.

What are the challenges that the Authority would now need to overcome in terms of standard-making, implementation and enforcement?
The biggest challenge is to make FSSAI the official standards-setting body in India on food and not BIS (Bureau of Indian Standards). This will ensure harmonising the process and making it accountable. The next big task is to bring all the state governments on the same page and encourage prompt reforms by providing incentives and support systems by engaging private sector with the best track record and not depend on public structures, which should be made accessible at a competitive price. The state governments should only ensure implementation and enforcement and not be service providers but service purchasers from the best entities.

Will the new Act benefit the Indian consumers in a big way?
Of course, the new Act is supposed to benefit the Indian consumer in a big way and that is why we agreed to support this new legislation but not in the manner it is handled today. By now we should have notified the best standards as per Codex Guidelines, we should have had an excellent tracing and tracking system in place, studies conducted on food contaminants and adverse effect of unhealthy food, penalties on misleading and deceptive advertisements, consumer awareness and education on access to safe and quality food and finally a strong regulatory mechanism at the Central and state level.

Are the consumer concerns sufficiently being represented to the Authority?
No. Unfortunately the consumer organisations in India lack the technical competence and resources required to intervene before the FSSAI and it is for the government to find a solution to this unfortunate state of affairs with the consumer organisations in India. Even though the Planning Commission has provided substantial budget to the various ministries on empowering the Indian consumer, I still find very little is done to institutionalise the process of intellectual intervention before the FSSAI to represent consumer concerns. Whatever representations are done are also not encouraged and implemented in the manner desired by the consumer. The law provided two consumer representatives within the Authority but their concerns are rarely heard and recognised by the secretariat of the FSSAI.

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