:: Media Coverage::

The great Indian shopping 'sale' trick

Published: Wednesday, May 16, 2012, 10:00 IST
By Priyanka Golikeri | Agency: DNA

Despite having a full understanding of the phrase ‘all that glitters is not gold’, Varun Sharma, like millions of shoppers was blinded by the dazzle of hoardings boasting of an exchange offer scheme by a hypermarket chain.

The hoardings lured shoppers to exchange their old clothes, newspapers, electronic items etc and get coupons that could be redeemed at any of the outlets owned by the chain.

The Bangalore lad who works with an insurance firm was especially enticed to give away his old shirts, trousers and the newspaper heap. The scheme looked lucrative enough, what with each kilo of old newspapers and clothes fetching coupons worth Rs30 and Rs250, respectively.

It was only after giving away the newspapers and 2 kg of clothes did he realise that the trick behind the offer. He got those coupons, no doubt. But he could redeem them only after purchasing certain items in that hypermarket at four times the value of the coupons. Thus, to redeem his coupons worth Rs500, he had to shop for at least up to Rs2,000.

“I then realised it would have been better had I given those old clothes to some orphanage and sold the newspapers at the neighbourhood raddiwalla,” says Sharma.

Left with almost no choice, Sharma, 27, went for some unnecessary and plentiful purchases, only to redeem those coupons.

Unlike Sharma, banker Namrata Goyal was alert enough to do some background checks before making purchases at an apparel outlet that made a strong pitch for its up to 50% sale programme. Goyal was keen to buy a particular brand of jeans which her friend had only last month purchased for Rs2,000.

Goyal visited this outlet which was displaying the same brand, but offering a discount. To her dismay, she noticed the pair was available at a 30% discount, but the price tag was Rs3,000, not Rs2,000. In effect, it was no discount as she would be paying the same price as her friend.

With an increasing zest for shopping and the rise of malls, hypermarkets and online shopping, discounts, sale and exchange offers are no longer a monsoon or festival season feature. In fact, some malls offer them year round.

According to rough estimates by retail and consumer experts, during the discount and sale period, footfall at any outlet jumps by two- to three-fold, with 75-80 of every 100 customers making some kind of purchase. And instead of any genuine bargain, these discounts often prove deceitful to gullible shoppers, always on the lookout for something cheap.

Consumer rights experts say sale, lottery or allurement are deemed as unfair trade practices according to the Consumer Protection Act, 1986. “However, retailers will justify by saying they are passing value to consumers,” says Bejon Misra, founder of Consumer Online Foundation, adding that actually there is no value addition to the consumer as these are plain marketing gimmicks.

Industry watchers believe that retailers play on the basic psychology of people which defines consumer behaviour — attraction towards anything offered cheap. It is basically mental satisfaction for the consumer that he has got a discount, says Uday Wavikar, vice-president, Consumer Courts Bar Association, Maharashtra & Goa, when in reality the “retailers are laughing their way to the bank”.

Wavikar says as most often consumers don’t cross-check on actual pricing, quality of products, and whether the product actually belongs to the brand whose label it displays, it is easy to get duped.

Moreover, freebies like ‘buy 2 get 1 free’ offers are mainly attempts by retailers to clear inventory, says Misra.

Asha Idnani, chairperson of Council for Fair Business Practices, says often products trading at discounts or given as freebies are close to their expiry period. “A person may have the requirement of just 1 bottle of a soft drink, but ends up buying more due to the discount,” says Misra, explaining that there is no tracking system to detect whether “the beverage actually carries the price mentioned on this bottle in this outlet which is trading as a freebie”.

Observers say in places like the US and Australia, consumer councils are rated highly. “Consumers in India who feel cheated can file class action petitions,” says Wavikar. He adds that in India there is a need for a nationwide consumer organisation backed by experts, a laboratory to check and test products and prices to safeguard consumer interests.

Hospitals are fleecing patients, shows report

Published: Wednesday, Apr 11, 2012, 10:00 IST
By Priyanka Golikeri | Place: Bangalore | Agency: DNA

Indians, on an average, spend $236 (Rs12,036) per day of hospital stay, says a report by International Federation of Health Plans, a network of health insurance players.
While inflating patients’ bills, hospitals are laughing their way to the bank by compelling them to pay more than double or treble on products which they source at heavy discounts from manufacturers, and pocketing the difference.
Apart from the customary bed cost, medicines and doctor’s charges, for every item — from adult diapers to glucometer strips — that patients are charged for, the hospital rakes in huge margins by bargaining with manufacturers and then billing patients as per the ‘MRP’— an amount quoted in the bill.
Consumer experts say the bigger the hospital brand, greater is its bargaining power.
A health expert who has worked with private hospitals in Mumbai and Bangalore says that unlike medicines, on which hospitals make just 20-25% margins, adult diapers, monitoring devices, IV sets, etc, allow them to maximise margins, as these products are opened and administered to the patient directly by the staff. “Thus, the patient rarely gets to see the packet and actual MRP.”
“This is rampant with no transparency or accountability. Hospitals take advantage of the ignorance and vulnerability of patients who are only looking for the best treatment,” says Bejon Misra, founder of HealthyYou Foundation.
Hospital managements, however, remained tight-lipped about this scenario.
An e-mail from Manipal hospital said they cannot comment on this, while an official from a leading corporate chain, who did not wish to be named, said information pertaining to the purchase division is kept confidential.
According to a consumer expert, patients have a right to know the price at which hospitals have bought the products because they are paying for it. “A case can be filed in consumer courts if hospitals don’t respond.”
The situation plays itself to the benefit of hospitals as rarely do patients or relatives challenge anything quoted in the bill and rarer still is them asking hospitals for permission to buy products from outside.
“Hospitals don’t allow patients to buy products from outside, even those, like adult diapers, available in plenty at lower rates in wholesale markets,” says Misra.

Can you take the screaming labels on superstore shelves at face value?

Esha Mahajan, TNN Apr 3, 2012, 11.59AM IST

Sugar-free' cream cookies, 'wholegrain' cereal bars, 'all-natural' fruit juice: it's hard to ignore the screaming labels on superstore shelves, but can you take them at face value? Usually not, experts say.
"Most claims on labels are incorrect, not scientifically proven, or highly exaggerated," says Dr Anoop Misra, director, Fortis-C-DOC Centre of Excellence for Diabetes, Metabolic Diseases and Endocrinology.

"Unrelated claims also mislead. Candy is obviously fat-free, but advertising makes buyers overlook the fact that it is pure sugar ," adds fitness expert Raghav Pande.
Breakfast cereal, for instance, may promise the goodness of wholegrain, fibre and other nutrients, but a quick reading of the full list of ingredients shows why it won't help you fight the bulge. "Most cereal is packed with sugar, high-fructose corn syrup and additives that are not part of a healthy diet," says Pande, adding that processes that increase shelf life of food also destroy nutrients.
The nutritional downside notwithstanding, processed food remains much in demand for its convenience. "People have little time to cook and end up eating a lot of packaged food," says Dr Misra. "They don't realize or can't help the fact that processed food is full of preservatives, carbohydrates and fats, and without any redeeming nutritional quality."
Rohit Duggal, an importer, was shocked into reducing his intake of processed food after he started reading the fine print on labels. "I used to get swayed by the claims made on labels, but when I became serious about losing weight I decided to educate myself . I realized that packaged food is not healthy."
But Duggal is in a minority in a city with a major weight problem that's only compounded by the lack of regulation for food labels. A study by Diabetes Foundation (India ), National Diabetes Obesity Cholesterol Foundation (N-DOC ), and Fortis, published in the Scientific Journal last September, revealed that half of Delhi's population is obese, 51.6% has high LDL cholesterol (see graphic ), and 68.9% has abdominal obesity (linked to various diseases ).
Although the Food Safety and Standards Authority of India has set labelling and packaging regulations , and food standards, manufacturers exploit the grey areas.
"The laws in our country are excellent and technically sound , but there needs to be more clarity on the application of law. Clarity comes with judgments, but that doesn't happen here because there are no convictions," says Bejon Misra, former member of FSSAI, and founder of the Healthy You Foundation.
Misra says the government needs to step in for consumers , since they are the most vulnerable and lack the means to take on offending companies. "There should be educational programmes on radio , television and other media to familiarize consumers with labelling terms. At present, consumers are overloaded with information they don't understand."
In 2010, Misra's foundation proposed a front-of-pack labelling system, along the lines of an international model accepted in about 50 countries, to make it easier for consumers to identify nutritious food with a clear sign. But the proposal has not been accepted yet.
In fact, ambiguous food labelling remains very much a worldwide problem with even the US' Food and Drug Administration unable to regulate claims, says a report by consumer advocacy group, Center for Science in the Public Interest.

“Rigoros Implementation: The Way Forward”

In a debate moderated by TIMES NOW's Editor-in-Chief Arnab Goswami, panelists -- Nirmala Seetharaman, National Spokesperson, BJP; Dr Bejon Misra, Consumer Expert and Dr. Balachandra Mungekar, MP RS, Congress & Economist -- discuss the issue whether it is conceivable that in India 2012 a human being can live on Rs. 28 a day.

FSSA is a representation of GLP, GMP to make industry accountable: Experts
Friday, January 20, 2012 08:00 IST
Our Bureau, Bangalore

The food industry in the small-, medium- and large-scale segments will now need to gear up to adhere to the Food Safety & Standards Act, 2006. This was pointed out at a seminar on Challenges on Effective Implementation of the New Food Safety and Standards Law: Consumer’s Perspective organised by the Bangalore Chamber of Industry and Commerce.

The Act is the representation of good laboratory practices (GLP) and good manufacturing practices (GMP), which are mandated in the production of food. It will help in preventing the scores of food poisoning cases in the country and will make the country’s food industry more accountable, according to experts present at the meet.

Elaborating further on the topic, Bejon Misra, international consumer expert and former member, Food Safety and Standards Authority of India (FSSAI), New Delhi, said, “The key to food safety is prevention at the source.”

He added, “Therefore it is vital to regulate their manufacture, storage, distribution, sale and import. There is need to ensure availability of safe and wholesome food for human consumption and for matters connected therewith or incidental thereto. Further, there is a need to protect the consumer by ensuring compliance with food safety laws and regulations, given that the public’s well-being is the ultimate objective of a national food safety system to remind producers and processors of their responsibility to produce safe food and beverages. Initiate activities which demonstrate commitment and honesty towards the end-users of all food products and beverages.”

Some of the key concerns of the consumers are that they expect traceability to know the origin of the food and its path through the supply chain. Healthy food has raised a global alarm on additives and contaminants. This is where the government and private sector needs to share responsibility for supply chain management and ensure commitment to training and adoption of new technologies, states Misra.

In her address on the latest development in analytical procedures, Dr Lalitha R Gowda, chief scientist, & head, Food Safety & Analytical Quality Control Laboratory, of the Council of Scientific and Industrial Research, Central Food Technological Research Institute (CFTRI), Mysore, said that the rise in food contaminants was alarming and industry should make efforts to test in-house or at accredited food labs to detect the same. “Advanced analytical procedures will help alleviate contamination crisis. All food precuts are targeted for adulteration are of high commercial value,” she said.

According to Udai Kumar Saxena, joint secretary, Association of Food Scientists and Technologies (AFSTI), Delhi chapter, and head, UK Solutions, the industry will need to have a practical understanding of the FSSA (licensing and registration of food business) effective from August 5, 2011.
FNB news.com

NATIONAL CONSULTATION ON DEVELOPING THE METHODOLOGY FOR A PROPOSED STUDY ON SPURIOUS MEDICINES, 3rd Oct '11.


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.

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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