Consumer Rights and Redressal mechanism

Due to globalization and opening of Indian markets to foreign players Indian consumers today have an access to innumerable brands. In every industry whether it is fast moving consumer goods (FMCG) or durable goods or service industry there are more than twenty brands at national level catering to the needs of the consumers. This situation of plenty is giving the consumer an opportunity to choose goods and services from a wide spectrum. But is the consumer getting value for money? why is consumer protection becoming more important in today’s scenario? and is the concept ‘let the buyer beware’ still exists? or are we moving towards consumer sovereignty?

Importance of Consumer Welfare

Consumerism, importance of consumers in the market, increasing awareness among consumers are some of the important milestones in the development of consumer affairs in India. A country’s economy revolves around its markets. When it is a seller’s market the consumer exploitation is the maximum. When there are large number of buyers and sellers, consumers enjoy a number of choices. Before enactment of the Consumer Protection Act, 1986 India had a sellers market. Thus, the year 1986 marks a watershed since then consumer protection in India gained momentum.

Further liberalization of our economy in 1991 gave opportunity to Indian consumers to get quality products at competitive prices. Earlier in order to protect our own industries government restricted foreign competition. This led to a situation where consumers were getting very few choices and quality wise also our products were inferior. For purchase of car there used to be a huge booking and there were only two brands available. Nobody bothered about consumer interests and the attitude was towards protecting our own industry.

Thus the need for consumer satisfaction and consumer protection was recognized. A consumer is considered as an inevitable part of a socio-economic –political system, where the exchange initiated and transaction realised between two parties, namely buyers and sellers has an impact on a third party ie, society. However, the inherent profit motive in mass production and sales also offers the opportunity to many manufacturers and dealers to exploit consumers. Problems of defective goods, deficiency in service, spurious and duplicate brands, misleading advertisements are rampant and often the gullible consumer falls prey to it.

in reference to:

"Consumer Rights and Redressal mechanism"
- IN FOCUS:UPA: Consumer Rights and Redressal mechanism (view on Google Sidewiki)