Consumer Power - 1st Issue May 2010

8/9/2019 Consumer Power - 1st Issue May 2010

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Consumers

POWER1.1

A bi-monthly resource for the consumers

Rs.25May 2010

InauguralIssue

Are YOU the Kingin India?

09 Charter of Telecom Services

19 Consumers Role inDispute Redressal System in India

PAGE 5

Impact of Adson Rural ConsumersPAGE 10

Standards:

A Part of Your LifePAGE 23

State of Consumersin ShimlaPAGE 16


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BASIC INFORMATION

Telecom tariff / charges and rates related issues

+ The customer must be given complete details of tariff plan including

charges payable for every item included in the plan within a week of

activation of service.

+ While taking the new connection, you can obtain the contact details of the

Call Centre, Nodal Officer and appellate authority of service provider for

making your complaints.

+ No hike in any tariff item or charges is permitted during six months from the

date of enrolment of the subscriber in a tariff plan.

+ In tariff plans having validity of more than six months including lifetime

plans no tariff item or charges shall be increased at any time during the

promised validity period.

+ 'Lifetime validity' means the duration of the current license or renewed

license of the service provider.

+ The customer is free to move from one tariff plan to another, including post

paid to pre paid and vice versa without paying any fee or charges for

migration and without change of telephone / mobile number.

+ Even if the talk time value has been exhausted, the prepaid customers

should get all the services, which do not affect talk time value, like

incoming calls/SMS etc. during the entire validity period.

+ Unused balance in the prepaid card at the end of the validity period is to be

carried forward if recharged during the grace period specified for the

purpose.

+ Fixed line and broadband customers to be given rental rebate for faults not

rectified within 3 days of making complaint.

+ No rental for national roaming facility. Receiving SMS is free while national

roaming.

+ Processing fee, if any, in the talk time top-up recharge shall not exceed

Rs.2/-.

+ Calling Line Identification Presentation (CLIP) facility cannot be made a

compulsory item of tariff in any tariff plan. If chargeable, it shall be optional

for customers.

Customers of Mobile &Fixed Telephone & Television

must read this for gettingbetter services

Whom to contact in case of telephone / mobile complaints?

How to stop getting unwanted telemarketing Calls and SMSs?

Basic information about Cable TV Services in Conditional Access System (CAS) Areas

TV services under Direct to Home (DTH)

Individual consumer complaints / disputes

TRAI invites all the stakeholders to visit its website: www.trai.gov.in for full Details of the

Regulations, Tariff Orders, and Directions issued by the Authority from time to time.

(Issued in public interest by Telecom Regulatory Authority of India)

Telecom Regulatory Authority of India

Telecom Regulatory Authority of India


3/36

Mr. J.S. SarmaChairmanTelecom RegulatoryAuthority of India, New Delhi

CONSUMERS POWER | May 2010 | 1

am happy to know that the Citizens' Awareness

Group (CAG) is publishing bi-monthly magazine

I"Consumers Power". The Citizens' Awareness

Group was registered with TRAI as Consumers

Advocacy Group in 2007 and has acquired good

knowledge about telecommunication services,

regulations governing its provisions and redressal of

consumer grievances. It has been organizing several

seminars and workshops to generate awareness about

the rights of consumers.

Consumer Advocacy Groups play significant

role in empowering consumers, particularly in mattersconnected with Telecommunications, Broadcasting and

Cable Services. I am confident that the Citizens'

Awareness Group would supplement the efforts of

Telecom Regulatory Authority of India in protecting the

interests of consumers and generating awareness

about their rights. I wish the organization great success

in its endeavors.

J. S. Sharma

EDITORIAL TEAM

Processed and Printed at :

Nex-Gen GraphibizPlot No. F-191, Industrial Area,Phase 8-B, SAS Nagar, MohaliPunjab

Printed & Published byMr. Surinder Verma, ChairmanCitizen Awareness Group.

All articles and advertising

material should be forwarded to :

The Editor

CITIZENS AWARENESS GROUPRoom No. 3 (Basement)Karuna Sadan, Sector-11-BChandigarh-160011

Tel & Fax : 0172-4007412Mobile: 094170 08805

093177 25073

E-mail :[email protected]@[email protected]

Websitewww.cagchandigarh.in

Mr. Surinder VermaDr. Navleen KaurMs. Manjeet KaurMrs. Sudesh KumariMs. Richa PriyaMs. Medha Kapoor

Design & LayoutCore Communications Pvt Ltd0172 [email protected]

Volume 1 . Issue 1


4/36

Mr. R.N. Prabhakar (Retd.)Member

Telecom RegulatoryAuthority of India, New Delhi

Mr. Ram NiwasHome Secretary

Chandigarh Administration

t gives me immense pleasure to know

that Citizens Awareness Group hasIstarted a bi-monthly magazineConsumers Power for the consumers of

this region. I appreciate the working of the

group with the objective of creating

awareness about various issues related to

health, literacy and consumer problem

from its inception. I hope that this

magazine will empower the consumers of

this entire region by providing them timely

information about the intricacies of market.

I personally welcome the launch of

the magazine here in this region, and

congratulate the entire team of CAG for

creating consumers.

Mr. Jagroop Singh MahalPresident

Consumer Disputes, Redressal ForumUT, Chandigarh

am happy to note that Citizens Awareness

Group has started a bi-monthly magazine

IConsumers Power and this issue will focus on

the consumer awareness in the telecom and

broadcasting sectors.

The mission of Telecom Regulatory

Authority of India (TRAI) is to ensure that the

interest of consumers are protected and at the

same time to nurture conditions for growth of

telecommunication, broadcasting and cable

services in a manner and at a pace which will

enable India to take a leading role in the emerging

global information society.

The service providers should ensure quality

of service and attend to consumer grievances as

per the benchmarks and procedures prescribed byTRAI. This is one of the concern of the regulator. In

order to this concern and to achieve its Mission,

TRAI has been conducting various regional

workshops for capacity building of Consumer

Advocacy Groups (CAGs) and consumer

education at regular intervals at different places.

The sole aim of this exercise is to raise consumer

awareness as end users through CAGs. TRAI

have been consistently striving towards improving

the response of the service providers to the

consumer needs and consumer complaints. Print

media has always been playing a significant role in

raising consumer awareness amongst consumers

and service providers by raising consumer centric

issues. I am sure your magazine will alsocontribute towards this aspect.

I wish the Citizens Awareness Group all

success in their foray to launch Consumers

Power magazine and hope that the content of the

magazine will be such that will enlighten the

consumers about their rights and obligations for

getting proper quality telecommunication and

broadcasting services.

t gives me pleasure to say that Citizens

Awareness Group Chandigarh has

Istarted a bi-monthly magazine titled

"Consumers Power". As we all know,

consumers are the largest social group in any

society. They face a number of problems

relating to the goods purchased by them and

services hired on payment. It is a common

knowledge that in every sphere whether it is

airlines, banks, railways, insurance, courier

agencies, housing, building activity, trading,

investments, education, telephone/mobile,

electricity, water supply, hospital etc., the

consumers hire services and in many cases

face, problems like the cancellation or delay,repudiation of claims, levying of' heavy

charges, medical negligence or non supply

or short supply of goods. The consumers are

the most unorganized group and need to be

educated about their rights. Many of the

consumers suffer deficiencies, losses and

humiliation simply because they are not

aware of the remedy or they feel that the

damage caused is bearable as compared to

the harassment and delay which they may

suffer in pursuing the remedy before the

Courts. The "Consumers Power" magazine

being launched by the Group is expected totake care of these problems and impart not

only education to the consumers about their

rights but also assist them to redress their

grievances.

I wish success to the Citizens

Awareness Group, is the need of the hour.


R.N. Parbhakar

Ram Niwas

Jagroop Singh Mahal


5/36

Ms. K. K. NarangDeputy Director GeneralBureau of Indian Standards


that the Citizens Awareness Group isIlaunching 'Consumers Power' ab i -month ly journa l dedicated to

consumers.

The Group has been playing a vital role in

spreading awareness amongst the

masses about various consumers related

issues. Their contribution in spreading

public awareness about the rights of

consumers has significantly supplemented

the endeavor of Bureau of Indian

Standards in creating awareness about

various activities of BIS.

Kindly accept my heartiest congratulations

and best wishes for your magazine which I

am sure will go a long way in further

promoting the values concerning the

consumers.

BUREAU OF INDIAN STANDARDS

Ekkud% iFkinkd%

Arun Kumar Gupta, IAS

General ManagerFood Corporation of India

Haryana Region


that Citizens Awareness Group hasIstarred a bi-monthly magazineConsumers Power about various issues

related to health, Literacy and Consumer

problems for the consumers of this region.

I convey my best wishes to the group and

wish it all success.

Food Corporation of India


Arun Kumar Gupta

Ms. K. K. Narang

am pleased to know that Citizens

Awareness Group (CAG), a voluntaryIorganization, has decided to publish itsbi-monthly magazine Consumers Power

with an objective to generate awareness

among citizens about their rights and

responsibilities and simultaneously assist

them in redressal of their grievances. I amsure that this effort of the CAG, would go

a long way in fostering a sense of

fraternity among the citizens. I

congratulate the organizers and wish the

publication a grand success.

Nilkanth S. Avhad

Nilkanth S. Avhad, IASGeneral Manager

Food Corporation of IndiaPunjab Region

Food Corporation of India


6/36

Editor SpeaksCITIZENS AWARENESS GROUP


5

9

10

14

16

1923

Is Consumer Reallythe King in India?

TelecomServices

Impact ofAdvertisements

TRAIBasic Information

Consumer Awareness

Role of Consumer

Standards :A part of our Life

Dear Readers

I am greatly pleased to present to our natured readers- the consumers community- with this newest

magazine Consumers Power. In today's world, consumers wield the power..the power to demand

the best.

In this issue, we had brought forward the rights of consumers in Telecom Industry. I am extremely

delighted on sharing Basic information on Telecom tariff and rate related issues and about the Role

of consumers.

I am heartly thankful to Mr. Bejon Mishra, Professor MC Pal, Dr. Akshat Mehta, Dr. Babita Aggarwal,

Dr. Meenu Aggarwal, Dr. Mamta Mokta and Ms. Renuka Salwan for their intresting articles.Apart from the introduction to TRAI by Dr. Akshat Mehta, you will also come to know about the

Common Charter of Telecom Services in this issue.

I feel extremely proud in incorporating the write-up on National Seminar on Role of Cosumer

Disputes Redressal system in India: Issues, Challenges and opportunities. Seminar was

co-ordinated by Professor MC Paul, School of Social Sciences, Jawaharlal Nehru University, New

Delhi. Seminar was organised as a mark of respect to the true spirit of UN Guidelines for Consumer

Protection (UNGCP) issued 25 years ago in 1985.

In a past few years Telecom industry has grown at a rapid pace with an upcoming of loads of

telecom companies, which had left the consumer in a state of confusion. The choice is extremely

difficult for the consumers of telecom industry as so many big brands have stepped into, leaving the

market overloaded.

This issue is just one step forward in helping you to make the right choice and to update your

knowledge as being a consumer. We shall appreciate your feedback and suggestions to help us in

helping you. Queries are also welcomed.

Surinder Verma

24TRAI :An Introduction

26 Child Labour in India

28 The Consumer Panchayat:

30Consumer Awareness -

Rights & Responsibilities

Investor Association recognised by Securities Exchange Board of India (SEBI)

Consumer Advocacy Group, registered byTelecom Regulatory Authority of India (TRAI)


7/36

onsumers are

considered to beCking in a freemarket; the sellers are

guided by the will of a

consumer. Webster's

dictionary defines

Consumerism as "the

promotion of the

consumer's interests" or

alternately "the theory

that an increasing

consumption of goods is

economically desirable".

"Consumerism" is likely to

dominate the Indian

market in the coming

years, thanks to the

economic reforms in the

present years and

increased direct foreign

investment in the retail

sector. The transition will

be from a predominantly

"sellers market" to a

"buyers market" where the

choice exercised by the

consumer will be

influenced by the level of

consumer awareness

achieved. By

"consumerism" we also

mean the process of

realising the rights of the

consumer as envisaged in

the Consumer Protection

Act (1986) viz. Right to

safety, Right to be

informed, Right to choose,

Right to be heard, Right to

redress, Right to

consumer education,

Right to satisfaction of

basic needs and ensuring

right standards for the

goods and services for

which one makes a

payment. The big

multinationals will leave

no stone unturned to gain

the attraction of the

consumer and will try to

gain a respectable market

share. However, some of

the companies try to

engage in unscrupulous,

exploitative and unfair

trade practices like

defective and unsafe

products, adulteration,

false and misleading

advertisements,

hoardings, black-

marketing etc. The earlier

approach ofcaveat

emptor, which means

Let the buyer beware,

has now been changed to

caveat venditor (Let the

seller beware). There is

an active need for having

awareness on the

consumer protection

rights.

Evolution of Consumer

Protection Rights in

India

The consumer movement

in India is as old as tradeand commerce. In

Kautilya's Arthashastra,

there are references to the

concept of consumer

protection against

exploitation by the trade

and industry, short

weights and measures,

adulteration and

punishment for these

offences. However, there

was no organised andsystematic movement

actually safeguarding the

interests of the

consumers. Prior to

independence, the main

laws under which the

consumer interests were

considered were the

Indian Penal Code,

Agricultural Production,

Grading and Marketing

Act, 1937, Drugs and

Cosmetics Act, 1940.

Even though different

parts of India exhibited

different levels of

awareness, in general, the

level of awareness was

pretty low. Indian

consumer movement

began with Passengers

and Traffic Relief

Association (PATRA) in

Mumbai, in 1915. The

growth from there has

been incredible and the

momentum of this growth

started during the 60s.

In 1969, Monopolies and

Restrictive Trade

Practices MRTP act was

enacted and MRTP.

Commission was set up

under the provision of the

act. The act deals with

cases of restrictive trade

practices, adversely

affecting competition, and

with unfair trade

practices arising largely

out of false and

misleading

advertisements. After this

act, consumer

groupscame into force,

emerged. The emergence

Is Consumer Reallythe King in India?"Consumerism" is likely to dominate the Indian market in the coming years, thanks to theeconomic reforms in the present years and increased direct foreign investment in the retailsector. The transition will be from a predominantly "sellers market" to a "buyers market"where the choice exercised by the consumer will be influenced by the level of consumer

awareness achieved.

C o v e r S t o r y



8/36

of the Amartya Bag, B.A.

LL.B. (1st Semester), KIIT

Law School, KIIT

University, Bhubaneswar,

Orissa. Consumer

Education and Research

Centre in Ahmedabad, in

1978, was a milestone in

the consumer movement

of India. It provided a

thrust and a direction to

the movement in terms of

a result-oriented approach

through effective use of

the law and the courts,

and injecting professional

inputs into the movement.

In the 1980s was the time

for the consumer rights

and many consumer

groups were formed in

different parts of the

country. In 1986 the

Consumer Protection Act

was enacted. In 1987, the

Indian Standards

Institute (ISI), which was

started around 1947 as a

membership society,

largely dominated by

industries, was turnedinto a statutory

corporation called the

Bureau of Indian

Standards with greater

participation by consumer

organizations. Thereafter.

in 1993, the Consumer

Protection Act was

amended overcoming few

limitations and making it

more effective and

inducing the concept ofconsumer courts. Three

tier consumer courts at

the nation, state and

district level known as the

District Consumer Dispute

Redressal Forum, State

Consumer Disputes

Redressal Commission,

and the National

Consumer Disputes

Redressal Commission

respectively were

established under the

provision of the act.

Consumer Welfare Fund

was also created during

that time. We have the

Securities and Exchange

Board of India, 1992, the

Telecommunication

Regulatory Authority of

India, 1997, and the

Central Electricity

Regulatory Commission,

1998. Apart from these, a

number of acts like Indian

Contract Act, Sale of

Goods Act, The Essential

Commodities Act, The

Agricultural Produce

(Grading and Marking)

Act, The Prevention of

Food Adulteration Act,

The Standards of Weights

and Measures Act have

been enacted by the

Indian legislature from

time to time to protect the

interest of the consumer.

The system has been

considered as one of the

best in the world in the

matter of consumerprotection.Consumer

Awareness and Rights a

Ground Reality. Even with

so many milestones, the

system is not perfect and

there are still hurdles in

providing justice to the

consumer in some cases.

In spite of having a

separate ministry or

department of consumer

affairs at centre and inevery state, the reality is

that consumer loses the

battle every time and

bows before the big wigs

that own the industries

and rein the huge

consumer market in

India. The consumer is

nothing but a crownless

king; the real power lies

in the hands of big

multinationals and retail

chains. Another reason

may be the lack of

awareness amongst the

consumer about their

rights. A recent study

found that although the

people have basic

knowledge about the

Weights and Measures Act

but very few people have

knowledge about the

other laws like the Drug

and Cosmetic Act

Prevention of Food

Adulteration, Food

Product Order, The

Essential Commodity Act

Display of Price Order;

Prevention of Black

Marketing and

Maintenance of Supplies.

It was also found in the

survey that the males are

much more aware about

the consumer protection

laws than the females. It

was also found out that

the people were not aware

about organizations

working at district and

national level. Out of totalsample, 48 percent males

and 20 percent females

were aware of both

consumer courts as well

as consumer forums. Only

6 percent each of male

and female respondents

were aware about the Sub-

Divisional Magistrate

(S.D.M.) office. Very few

knew about the public

supply office. Majority ofrespondents i.e. 50

percent males and 12

percent females were

aware about the National

Consumer Forum at Delhi.

2 percent males were

aware of Consumer

Guidance Society,

Hyderabad and Consumer

Forum, Bombay. None of

the female respondents

were aware about

Consumer Guidance

Society and Forum. This

survey shows how the

consumers in India are

unaware about their legal

rights. Indian consumers

want quantity not quality,

they prefer to compromise

rather than complain.

Though charging of a good

above the maximum retail

price (MRP) is against the

law, it is a very common

observance that the seller

tends to charge a good

above the

MRP. It is common that

one has been charged

above MRP for buying a

bottle of mineral water at

railway station or

multiplexes. There are

many goods which are

sold in the market

without much

information about their

quality, quantity and

purity. In case of goods

meant for mass

consumption like, food,

milk products, edible oils

etc. the ingredients are

not known.

The big multinational

companies make a huge

profit from whatever they

sell; they try to gain the

attention of an average

consumer through catchy

slogans and

advertisements with

bollywood celebrities and

cricket players as their

brand ambassadors to

promote the goods. The

consumer lured by the

advertisement follows the

preference of their silver

screen idols blindly

without knowing the

ingredients of an article

and suffers. Sometimes

the sellers offers

unrealistic schemes on



9/36

anything ranging from

soap to a two-wheeler or a

computer, the consumer

is deceived by these

schemes offered by the

manufacturers, who

spend crores of rupees on

their brand ambassadors.

The poor consumer, who

is caught-up in buy-one,

get one schemes hardly

finds time to apply his

mind that it is he who

pays everything, even for

those so-called free-gifts

and gold coins that are

used as marketing tools.

The tragic part of all this

is that at the time of

purchasing the goods, the

consumer is never shown

the clauses of warranty,

written in the microscopic

fonts, with so many

conditions apply

mentioned in the foot-

notes of these documents

hidden somewhere in

owners manual. The

consumer gets this

owners manual onlyafter he makes the

payment of the product he

intends to purchase.

However, a closer look at

such warranties makes

one to ponder upon the

fraud most of the

companies commit with a

consumer. Take an

example of a two-wheeler

or a four-wheeler

purchased from anyreputed automobile

company. The warranty

says like this: This

warranty doesnt apply to

proprietary parts like

tyres, tubes, battery,

plastic items, bulbs,

indicators, rubber

components, grommets,

O rings, bellows etc.

Then what is left that

comes under warranty?

There is another fraud

attached to such goods. A

branded company uses

and assembles the tyres

and spare-parts of lesser

known companies. The

consumer hardly knows

about this arrangement,

as no such trade secrets

are revealed through the

advertisements by the

brand ambassadors. The

poor consumer, who

intends to bring home the

leader from the firm of

international fame, comes

to know about such fraud

only after the purchase of

the goods that are over

stuffed with low quality

desi spare-parts. Now

have a look at the

warranty card provided

with any electric or

electronic goods item,

including television sets,

DVDs, computers etc. The

consumer is again duped

in the similar fashion.

Here again, the hidden

warranty speakssomething like this: In

the event of damage on

account of high or low

voltage, fluctuation in

current, lightening etc,

the warranty

automatically null and

void. Is a consumer

responsible for the high

or the low voltage that is

supplied by the electric

department? Again, incase of refrigerators or air

conditioners, the

companies claim that they

will not be responsible for

the leakage in the gas,

for which extra money is

to be paid. Further,

similar conditions prevail

in case of automobiles,

which say that there will

be no replacement on

rubber or plastic items,

notwithstanding the fact

that the ACs or fridges are

mostly made of such stuff.

If there is no warranty on

such items, then what is

the warranty all about?

Just to deceive the Indian

consumer who simply

purchase the goods

thinking that the same

can be repaired or

replaced within the

warranty period, while

remaining ignorant of the

basic difference between

guarantee and

warranty. And when any

aware consumer dares to

challenge such self-made

clauses in the court of

law in the event of any

defect in the goods within

the warranty period, he

comes across with

another problematic

clause in the warranty

that reads like this: This

contract is effective at a

place where the company

has a manufacturing unit

(say at Mumbai) andclaims if any, shall be

made only before the

courts having the

jurisdiction in Mumbai

and no claims shall be

made outside Mumbai,

notwithstanding that the

refrigerator, two-wheeler,

TV, etc may have been

sold or delivered or any

stipulation or

commitment in respectthereof may have been

made elsewhere. Have

another look at the clause

in the warranty: This

warranty is in vogue only

for a period of 12 months

from the date of

purchase. The fact is that

AC or fans remain off for

at least six months a year

in most parts of the

country. Yet another

clause says that if a

machine has been

negligently used, then the

company is not

responsible for the

damages. Despite the

existence of consumer

forums at various levels,

many people are

compelled to go to the

courts seeking remedies.

In India sellers try to

corner and catch the

consumers on wrong foot

in the courts of law by

putting the onus of

damage on to the

consumer, declaring him

as untrained to operate

the consumer goods,

while arguing the cases

through highly paid

advocates. And the poor

consumer, who is already

depressed on account of


InsuranceInstitutefor Education &Training

UGSE-

SCO 62-63, Top Floor,Sector 17-A, Madhya Marg,Chandigarh - 160 117Telefax : 0172 5077054, 4643054Email : [email protected]


10/36

Bank:A place that will lend

you money only when you

don't need it.

CEO: Chief Embezzlement

Officer.

CFO : Chief Fraud Officer.

-----------------

What's the difference between

buying a lottery ticket and

buying a penny stock? In thefirst case, you help finance

your local community

swimming pool. In the second

case, you help finance thestock promoters home pool.

-----------------

A long term investment is a

short term investment thatfailed.

-----------------

A stockbroker is someone whoinvests your money till it's all

gone!

-----------------

A market analyst is an expert

who will know tomorrow why

the things he predicted

yesterday didn't happen today!

-----------------

Momentum Investing: The

fine art of buying high and

selling low.

-----------------

Value Investing: The art of

buying low and selling lower

Bear: What your trade

account and wallet will bewhen you take a flyer on that

hot stock tip your secretary

gave you.

Bull: What your broker uses

to explain why your mutualfunds tanked during the last

quarter.

-----------------

QUESTION: When does a

person decide to become a

stockbroker?ANSWER: When he realizes hedoesn't have the charisma to

succeed as an undertaker.

-----------------

A stockbroker is a man who isalways ready, willing, and able

to lay down your money for

his commission.

-----------------

The Pessimist sees the glass as

half empty. The Optimist sees

the glass half full. The StockMarket Day Trader JUST

ADDS WHISKEY ...

Jokes for

Fun

having purchased a

defective item, thinks

twice before moving

consumer protection

forums or NGOs for the

redressal. Can he afford to

hire the services of a good

advocate to fight the case

against such

multinational companies

who have a turnover in

crores of rupees per year?

And then such forums too

show inability at times to

help the consumer, after

going through the

cunningness hidden in

every term and condition

written in the owners

manual. One wonders,

who has authorised such

companies to incorporate

all such conditions that

suit only them and not

the consumer. The

concerned ministry is

aware of all this deceit

and yet, the consumer is

far from being the king.

Why? For one, he is

averse to be a litigant andprefers to suffer in

silence. For another, the

courts are so over-

burdened with cases,

majority being trivial, that

justice is invariably

delayed, if not denied. The

Consumer Courts were

created with an objective

to dispose the cases

within a very short span

of time, but the groundreality is that the case

remains without trial for

many years, thus defying

the very objective of its

establishment. Presently,

the courts are located at

district headquarters. This

prevents consumers of

far-flung areas,

particularly in big states

like Uttar Pradesh and

Madhya Pradesh, from

approaching the courts

for justice. A more

desparate distribution of

the redressal machinery

is desirable. The

cumbersome procedure

for filing a case adds to

the burden of a consumer

in the process of getting

justice. Consumers thus

have the social

responsibility of exposing

the manufacture

suppliers or the service

providers for resorting to

illegal trade practices.

Unethical notings like

Goods once sold will

never be taken back are

in sharp contrast to the

practice in some of the

developed countries,

where the sellers declare;

In case you are not fully

satisfied with our

product, you can bring

the same to us within a

month for either

replacement or return of

your money. This is theresult of consumer

consciousness.

Consumers have to realize

their role and

importance. The

consumer movements can

be winner movements

only with our active

involvement by knowing

our rights and enforcing

them. Formation of

consumer associations inevery town would be the

first step towards this

path. It requires a

voluntary effort involving

the participation of one

and all. If the consumers

remain passive, they will

continue to be exploited.

It is necessary that

consumers take action

with solidarity to get a

fair deal and timely


redressal. An alert

consumer is a safe

consumer! There is a need

for a fresh look at the

machinery already set up

to protect consumer

interests. Establishment

of more number of mobile

consumer courts and fast

track consumer courts to

resolve minor issues

should be done to make

the judgement procedure

fast. In the coming years,

every consumer in his

own interest has to

realise his role and

importance in the right

perspective. In a

competitive economic

environment the

consumer has to exercise

his choice either in favour

of or against the goods

and services. His choice is

going to be vital and final.

He should realise his

importance and prepare

himself to exercise his

rights with responsibility.

It is very often stated"Customer is sovereign

and consumer is the

King." If that is really so,

why do we have the

Consumer Protection Act?

Why is there a need for

protecting the King?

Should it not be rightly

called "Consumer

Sovereignty Act"? It is for

the consumers to decide.

After all the dictum indemocracy is, the citizens

get a government they

deserve. Similarly, the

consumers in society get

a position in the market

depending upon what

they do or do not do. It is

agreed on all hands that

"consumer empowerment"

in India has a long way to

go. This is the right time

to act.


11/36

ll ServiceProvidersAacknowledge therights of citizens to have

a free choice in selecting

their Service Providers

and agree to promote their

services in the best spirit

of competition and

traditions of service to

consumers. All Service

Providers agree to

promote the consumers'

right to education, choice,

representation and

redress.

All service providers

assure that the privacy of

their subscribers (not

affecting the national

security) shall be

scrupulously guarded.

All Service Providers

assure that their

subscribers shall beentitled to interact with

them, either personally or

through their authorized

representatives.

For information and

education of subscribers,

all Service Providers agree

to inform their

subscribers of the broad

range of services offered,

the individual plans

available to them at anygiven point of time, the

tariff rates applicable to

each of these, their

validity, terms and

conditions, payment

policies, the billing

processes and

procedures and the

structure within the

organization where

information and

clarification on consumer

redress systems for

complaints and billing

disputes will be available

with all their relevant

contact numbers.


agree to arrange human

interface with responsible

company executives

whose name and identity

are made known during

the process of disputes

resolution in addition to

arrangements like

Customer Care Service

through Call Centres.


agree to inform their

subscribers on the reverse

of each* bill, their

consumer grievance

redress process with

respect to fault

complaints and billing

disputes. They also agreeto resolve the disputes as

per the guidelines of TRAI

issued from time to time.


agree to provide an

applicant basic telephone

connection within 7 days

of registration, subject to

technical feasibility and

the mobile connection

immediately subject to

compliance of all requiredformalities by the

subscriber.


agree to repair the faults

within 24 hours of receipt

of complaint from a

subscriber, wherever

technically feasible.


agree to ensure shifting of

telephone connection

within 3 working dayswithin the same

exchange, 5 working days

for intra city and 30

working days for inter

city exchanges and

closure (disconnection) of

telephone connection

within 3 days, on receipt

of a letter of request from

the subscriber. An

authenticated copy of the

last telephone bill shall

accompany the letter ofrequest.


agree to provide in their

bills related call and tariff

details, payment

procedures and list of

points at which payments

can be made by

subscribers.


agree to register

complaints in all areas oftheir service immediately,

if delivered in person or

by e-mail and within 24

hours on receipt of the

complaint by post.


shall render service

without discrimination to

every citizen as per his

eligibility defined below

and who undertakes to

pay all charges anddeposits:

For the purpose of this

clause, a citizen shall be

defined as an individual

above the age of 18 or an

institution, NGO or

business/service

organization engaged in

any activity which is

permissible under the

laws of the land.

Common Charter of

Telecom Services2005


Continued on Page 15


12/36

n this story there are

no heroes and

Ivillains; just people

who believe they can buy

happiness, and

advertisers who support

this belief. Consumerism

is one of religion's modern

replacements and like

religion it actively

encourages, then exploits,

dissatisfaction with

everyday reality.

P. Lutus in Consumer

August - 2001

Choice is a fundamental

problem for all human

beings and it is also a

complex problem because

we are living in a kinds of

entertainment of Riches

age. There are new

products, new kinds of

entertainment and new

services coming along

constantly. Window-

shopping, newspapers,magazine, radio and

television, influence us

and increase our desire

more and more. Choice of

any thing is very difficult.

Because now a days

different brands of the

same product /materials

are available in the

market. How do rural

consumers decide what to

buy? Sometimes the price

for the same commodity is

different at different

places and at times one

gets inferior quality

product for higher prices.

Lack of awareness on the

part of rural consumer

and absence of rural

consumer organizations

to protect their interests

have complicated the

process of product

evaluation by the rural

consumers' aware about

their rights and the

objects available in the

market. All human beings

have been consumer in

every moment of their

life, night and day. A

rural consumer thus

participates actively in the

economy from the day he

spends his first paise for

candy, lemon, drops etc.;his first contact with the

economy begins in a retail

store. As a rural

consumer he has an

important role to play in

the economy. The way he

performs will in turn

affect the performance of

the economy. Anyone who

consumes goods is a

consumer. Rural

consumers get exploited

in the market. They

respond to advertisement

and buy goods. Generally

advertisements do not

give all the information

that rural consumers

needs to know or wants to

know about a product. In

recent years behaviour of

the rural consumers has

changed. A few decades

ago rural consumers was

a silent person who

uncomplainingly

purchased the goods from

any place. But this is notso today. Now the

consumer is the choice

empowered consumer

who decides the fate of

the product with the

rising of his earnings.

Thus, the manufactures

are continuously engaged

to understand the

complex consumer

behaviour better and

respond by offering goods

and services as desired by

them. However, in

scarcity, the buyer is

compelled to buy things

whatever is available in

the market. The key to

ensure consumer

satisfaction lies in under-

standing the consumers -

his likes and dislikes, his

expectations and

motivations, in short it

may be called as

Consumer

Behaviour.Consumer

Impact of

Advertisementson Rural Consumer Educationand Behaviour

Dr. Meenu AggarwalReader & Head, Economics,Ginni Devi Modi Girls (PG) College,Modinagar


Consumerism is one of religion's modern

replacements and like religion it actively

encourages, then exploits, dissatisfaction

with everyday reality.


13/36

Behaviour refers to the

acts of individuals directly

involved in obtaining and

using economic process

that precedes and

determines there acts

Consumers behaviour

research also considers

that rural consumers

make use of the goods

they buy and the

evaluation of these goods

after use.

Rural consumers make

choice under the

influence of two factors

Purpose, need or desire.

Behavioral pattern.Purpose, need or desire.

A rural consumers will

not buy a medicine unless

someone is sick, if he is

rational. But he may buy

a cake if he is with his

friends. He may not do so

if he is alone. Event such

as festival, marriages,

birthdays, transfers etc.

may occur which gives

rise to needs for a specificperiod of time.

Behavioral Pattern It is

a familiar phenomenon to

find people reacting to a

situation or environment

in different ways at

different times; Behaviour

and attitudes depend on a

number of factors such as

habit, recognition, and

price impulse, emotion

and unpredictability.These are briefly

discussed below:

Habit

Recognition

Price

Impulse

Emotion

Unpredictability

In general, rural

consumers behaviour are

influenced by tradition

culture, religion, and

+

+

+

+

+

+

+

+

society of which consumer

is a part. In addition,

environment influences

and purchasing power

affects choices to a large

extent. Rural consumers

behaviour is also guided

by those needs, which are

as yet not satisfied.

Factors Influencing

Consumer Behaviour

Needs / Attitudes/ Habits

That influence

Consumption decisions

Consumer Choice

Behaviour/ experiences

that Reduce/ maintain orenhance Lifestyle

resulting in Consumer

satisfaction Consumer

lifestyle

History of Consumer

Movement

An important socio-

economic movement

confronting the business

is the growth of

consumerism and thelegislative measures to

produce the consumers. It

is said that Indian

consumers are cheated to

the tune of Rs. 2000

crores annually through

the various devices

invented by the

businessmen and traders

and hence, the need for

consumer protection. The

protection that the

consumers required is of

the following types:

Protection against unfair

and deceptive trade

practices.

Protection from monopoly

and restrictive practices.

Protection against unsafe

or harmful products that

endanger the health and

the well being of

consumer.

Protection against all

types of pollution.

The consumer movement

in India started in the

begging of 20th century.

The first known collective

body of consumers in

India was set up in 1915,

with the 'Passengers and

Traffic Relief Association'

in Mumbai. It was formed

with a view to reduce the

hardships and trouble`

faced by the passengers

travelling by railways and

steamers and also to

redress the grievances of

the Indian Trading

Community.The 'Indian Association of

Consumer (IAC)' was set

up in Delhi in 1956, and

all India Association for

consumers' interest with

government support. This

body had luminaries like

Shri Manmohan Sehgal,

Mrs. Shushila Nair and

Shri Guljarilal Nanda,

among others.

The world has witnessedrapid growth in

consumerism and hence

consumer protection has

become an important

aspect of modern life. To

protect the consumer

various countries have

enacted consumer

protection laws. India has

also witnessed a slow

growth rule in India. The

colonial masters brought

with them mass

consumption age in India

and thus also came the

exploitation of

consumers. With the

growing of numbers of

atrocities on consumers

the government enacted

series of consumer's

protection laws.

Impact of

Advertisement on Rural

Consumer

Advertisements have

become an important part

of modern business and

industry. It is therefore

not surprising that we are

confronted by them

wherever we go, We see

them in newspapers and

magazines on television

and the internet, hear

them over the radio and

see them on buses, taxis

and trains.

Advertising as an

industry has been a

steadily growing industrysince the eighties. It is a

complimentary

relationship that develops

for mutual benefits.

Product and services'

promotion through

advertising requires large

and extensive canvas and

far-reaching and

penetrating means of

communication.

Advertisements arecreated by sellers of goods

and services to boost the

sales of their products

and often published or

broadcast repeatedly in

the media. The idea is that

through repeated

reminders, a customer

comes to remember the

product and, hopefully,

ends up using it.

All advertising is

psychological. Their

purpose is to create a

demand, desire

impression and to expand

sales. This is to

accomplish by attracting

attention creating

perception and interest

and making the

advertisement being

understood easily, thereby

arousing and creating a



14/36

favorable image. There are

several so many impacts

that accrue to consumers

as a result of growth of

large-scale advertising.

These are as follows:

Advertising is

educational, as newer

products are known;

standard of living is

improved and thus

increased satisfaction in

daily lives.

Advertisements do benefit

consumers in certain

ways. For example,

consumers are exposed

to variety of brands for a

given product. They arethen able to compare the

choices available and

select the one that suits

them best. Businesses

also use advertisements to

introduce new products.

Consumers therefore

receive information on

the latest goods and

services available in the

market. As more and

more new productsbecome available,

businesses are forced to

produce goods of better

quality and improve the

level of their service to

keep up with the

competition. The

availability of better

quality and services

obviously benefits

consumers.

Advertising helps in

communication.

Advertising is the

brainchild of a

mechandise. Advertising

pays for most of our

means of communication.

It leads to communication

at lower prices, thus

permitting consumers, to

have more purchasing

power for other

merchandise. Advertising

pays for most of our

means of communication.

Even a newspaper cost

would be beyond the

reach of a common man.

The press and a large part

of the entertainment

industry like television,

radio and magazines are

at large supported by

advertisements.

Advertisement serves the

public. Red cross etc. have

been aided in many ways

and as such it serves

public welfare also. It

informs consumers about

where to shop. There is

not a day of the weekwhen consumers, are not

advised of special sales in

departmental stores,

super markets or

specialty shops. Home-

owners receive valuable

hints and proper product

selection.

Advertisement provides

useful information for

rural consumers also

about products and theiruses. It helps them to

develop better habits and

they improve better life

style.

For Example

Advertisement reminds

you to brush your teeth

two times a day, use

better shampoo for hair

falling problem.

Advertising maintains

high standards. Since a

vast majority of products

succeed in acquiring a

reputation, which leads to

good public acceptance as

a direct result of effective

advertising, the sellers

are forced to assume the

responsibility to maintain

the original specification

of the products they seek

to sell.

Advertisements awares

you about the product like

product price, availability

about the product,

sources, company name,

even ingredients of the

product.

This information helps

the rural consumers to

save consumers time and

efforts. Those people who

are illiterate the see the

advertisements and

become aware about the

product. They spend our

money in the right way.

Administration,

advertisers of drug food,

cosmetics preparationsand vitamins frequently

misrepresent their

products by label

advertising literature

containing magic words.

Advertising very of ten

winds even greater

victories through the line

of appeals to sub

conscious needs. Modern

advertising specialists

have learnt to successfullycontrol feelings of quit,

fears, loneliness, doubts

and insecurity. One might

properly classify the

advertisers as:- Vultures

who feast on the secrets,

miseries, misfortunes and

weaknesses of human

beings. They work on

man's mind and his soul.

Know a day's

advertisement is an

important source of

income for websites, any

show of the college also so

many big and small

company sponsors the

shows, newspaper,

magazines, radio,

television etc.

Advertisement provides

direct and indirect

employment to a large

number of people creative

director, writer, junior

artist etc.

Recently, the greatest

emphasis has been on the

depth approach. Clever

advertising copy is

especially aimed to

promote purchasing

through non-rational and

impulsive logics instead of

rational and logical

approaches. The

advertising has become a

professional persuasion to

manipulate the

consumer's buying

attitude. Advertisers reap

rich dividend from the

knowledge, that consumeron the whole are gullible

and that few people have

mastered the art of

reading advertising

material with a critical

eye.

For these reasons it is

indeed like looking for the

proverbial needle the

haystack as contact less

in a summing pool to

collect a food sampling ofstraight honest

advertisement.

Forms of Advertising

There are so many forms

of advertisements,

including so many things

in the advertisement

which are as follows :

Direct-Mail Advertising

Informational

Advertising

Institutional

Advertising

Outdoor Advertising

Product Advertising

Speciality Advertising

Media

Social network

advertising

A new form of advertising

that is growing rapidly is

social network

+

+

+

+

+

+

+

+



15/36

advertising. It is online

advertising with a focus

on social networking

sites. This is a relatively

immature market, but it

has shown a lot of

promise as advertisers

are able to take advantage

of the demographic

information the user has

provided to the social

networking site.

Friendertising is a more

precise advertising term

in which people are able

to direct advertisements

toward others directly

using social network

service.Celebrities Advertising:

This type of advertising

focuses upon using

celebrity power, fame,

money, popularity to gain

recognition for their

products and promote

specific stores or

products. Advertisers

often advertise their

products, for example,

when celebrities sharetheir favourite products

or wear clothes by specific

brands or designers.

Celebrities are of ten

involved in advertising

campaigns such as

television or print adverts

to advertise specific or

general products.

Covert advertising:

Covert advertising is

when a product or brand

is embedded in

entertainment and media.

For example, in a film, the

main character can use

an item or other of a

definite brand, as in the

movie Minority Report

where Tom Cruise's

character John Anderton

owns a phone with the

Nokia logo clearly written

in the top corner, or his

watch engraved with the

Bulgari logo.

Consumer Education

Government and private

agencies in India offer

rural consumers

education programmer

and widely disseminated

consumer information

system. Some of the

reputed private

companies involve

themselves with rural

consumers education

giving high emphasis to

the motto educated

consumers make better

consumers along with

their selling portfolio.Even after, consumer

education in India is still

practically not so widely

spread, the Union

Government has been

making efforts to educate

the rural consumers. The

right to consumer

education means the right

to acquire the knowledge

and skills to be an

informed consumer. Thus,the right to consumer

education envisages the

right to knowledge and

skills needed for taking

actions to influence

factors, which affect

consumers' decisions.

According to the

guidelines, the

governments should

develop and encourage

the development of

general consumer

education programmes,

bearing in mind the

cultural traditions of the

people concerned. The

aim of such programmes

should be to enable people

to act as discriminating

rural consumers, capable

of making informed

choice of goods and

services, and conscious of

their rights and

responsibilities. In

developing such

programmes special

attention should be given

to the needs of

disadvantaged consumers.

The important points of

Consumer Education are

as follow :

1.Introducing rural

consumer education in

the basic curricula of

the education system;

2.Governments to develop

consumer education

programmes in mass

media aimed at ruraland illiterate

consumers.

3.Education programmes

particularly for the

benefit of low-income

consumers in rural and

urban areas;

4.Business to

undertake/participate in

factual and relevant

consumer education

programmes; andGovernments to organize

training programmes

for education, mass

media professionals etc.

In the modern era it is

mandatory to protect the

rural consumers rights

and empowering them by

education. They should

not take the decision

always on the basis of

advertisement. The cost of

making advertisement is

usually very high.

Businesses have to spend

large sums of money to

get consumers to notice

and recognize their

product. Part of this

money goes to the

production of the

advertisement, packaging

of the product and buying

of advertisement space in

newspapers and

magazines, on billboards,

television and the radio.

The cost of advertising is

partly borne by

consumers, who end up

paying more for a product

than they would

otherwise have to.

Advertisement can be

misleading. To boost sales,

they are made to appeal tothe purchaser's vanity-this

expensive face cream will

make you look beautiful;

that vitamin supplement

will help you stay young;

these pills will make you

slim without the need for

exercise. Such claims are

often exaggerated but

believe by many.

Advertisement was once

upon a time the tool forcreating awareness about

their product among the

people. But now-a-days it

creates problem among

the people and putting

problematic burden on

the families.

Awareness has to be

created among the rural

consumers about the good

quality of products and

services. Largest number

of consumers live in the

rural areas in India. So

protecting the rural

consumer has to be a

priority.


The governments should develop and

encourage the development of general

consumer education programmes.


16/36

Basic Information on Telecom tariff/charges and rates

related issues from Telecom Regulatory Authority of India

that specifies your rights.

he customer mustbe given completeTdetails of tariff planincluding charges payable

for every item included in

the plan within a week of

activation of service.

While taking the new

connection, you can

obtain the contact details

of the Call Centre, Nodal

Officer and appellate

authority of serviceprovider for making your

complaints.

No hike in any tariff item

or charges is permitted

during six months from

the date of enrolment of

the subscriber in a tariff

plan.

In tariff plans having

validity of more than six

months including lifetime

plans no tariff item orcharges shall be increased

at any time during the

promised validity period.

'Lifetime validity' means

the duration of the

current license or

renewed license of the

service provider.

The customer is free to

move from one tariff plan

to another, including post

paid to pre paid and vice

versa without paying anyfee or charges for

migration and without

change of telephone /

mobile number.

Even if the talk time value

has been exhausted, the

prepaid customers should

get all the services, which

do not affect talk time

value, like incoming

calls/SMS etc. during the

entire validity period.Unused balance in the

prepaid card at the end of

the validity period is to be

carried forward if

recharged during the

grace period specified for

the purpose.

Fixed line and broadband

customers to be given

rental rebate for faults not

rectified within 3 days of

making complaint.No rental for national

roaming facility. Receiving

SMS is free while national

roaming.

Processing fee, if any, in

the talk time top up

recharge shall not exceed

Rs.2/-.

Calling Line Identification

Presentation (CLIP)

facility cannot be made a

compulsory item of tariff

in any tariff plan. Ifchargeable, it shall be

optional for customers.

Customer consent a

must for providing

Chargeable Value Added

Services

No chargeable value added

service like ring tone,

caller tune, missed call

alert, music / songs etc.

shall be provided to a

customer without his/herexplicit consent.

All communications/

advertisements relating to

premium rate services e.g.

ring tones, wallpaper,

astrology, quiz etc. should

have the pulse

rate/charges for the

service.

Whom to contact in case

of telephone / mobile

complaints?

All service requests/

complaints are to be made

to the Call Center. The

Call Center shall registerthe complaint / request

and provide docket

number to the

complainant.

In case the customer is

not satisfied with the

redressal of his complaint

at the Call Center level, he

may approach the Nodal

Officer and then the

appellate authority. For

contact details of CallCentre, Nodal Officer and

appellate authority, you

may visit the Website of

your service provider.

Complaints pertaining to

service disruption / faults

are to be attended within

a maximum period of 3

days and billing

complaints within 4

weeks by telecom service

provider. In the event of a

request for termination,

the services shall be

terminated by telecom


Your Rights as a

Telecom Consumer

Do you know?

Fixed line and broadband customers to be

given rental rebate for faults not rectified

within 3 days of making complaint.


17/36

service provider within a

maximum period of 7

days and bills to be raised

after adjustment ofsecurity deposit.

How to stop getting

unwanted

telemarketing Calls and

SMSs?

A customer who does not

wish to receive unwanted

commercial calls or SMSs

can register his telephone

number in the National

Do Not Call (NDNC)

Registry by dialing '1909'or sending SMS by typing

START DND and send it

to 1909.

In case the customer

receives unsolicited

call/SMS even after 45

days of registration in the

NDNC registry, complaint

can be lodged with the

service provider within 15

days of receipt of such

unsolicited commercialcommunication.

Basic information

about Cable TV Services

in Conditional Access

System (CAS) Areas

CAS is only available in

Chennai and parts of

Delhi, Mumbai and

Kolkata.

All customers in CAS area

will get 30 Free to Air

channels without Set Top

Box (STB) by paying

Rs.82/- (excluding taxes)

per month.

CAS allows consumers

choice of selecting

individual pay channel.

No compulsion to take

bundle of channels or

bouquets.

Pay channels will be

available at the rate of

Rs.5.35 per channel per

month (excluding taxes).

STB only required for

getting pay channels.

STB to be made available

for a deposit of Rs.200/-

with a monthly rental of

Rs.34/- or deposit of

Rs.750/- with a monthly

rental of Rs.22/- to the

new customers.

Your Multi System

Operator (MSO) is

required to maintain

Customer Service Center

for receiving your

complaints.

All complaints made will

be registered and given a

docket number.

Monthly bills with details

to be given to the

customer by the cable

operator compulsorily.

TV services under

Direct to Home (DTH)

The DTH operator has tomake schemes and offer

Set Top Box (STB) on

rental, hire-purchase

basis and outright

purchase basis. The

customer has the freedom

to choose from schemes

being so offered.

In case of termination of

connection, the service

provider has to give a

notice to the customers.A subscription package

offered to a customer

cannot be changed to the

disadvantage of the

customer for 6 months

from the date of

subscription.

STB not to be disabled

in case there are no

dues.

In case of any complaint

or problem with the

services, the customer

may contact the Call

Centers on toll free

numbers of the serviceprovider.

Individual Consumer

Complaints / Disputes

Individual consumer

complaints / disputes

which are maintainable

before Consumer Forum

are not handled by TRAI.

Customer has to seek

redressal of the grievance

with the service provider

as per the regulations or

can seek remedy in the

Consumer Forum

Complaints alleging

violation of the

Authority's direction/

orders/regulations are

handled in TRAI.

TRAI invites all the

stakeholders to visit its

website: www.trai.gov.in

for full details of the

Regulations, Tariff

Orders, and Directions

issued by the Authority

from time to time.

(Issued in public interest byTelecom Regulatory Authority of

India)


Common Charter of

Telecom Services 2005

Continued from Page 9

All service providers agree to provide information on

Directory Services and book complaints on toll free

number for registering complaints.

All service providers agree to provide their subscribers

satisfactory connectivity to their services and

interconnectivity to the extent of their respective legal

obligation under the relevant interconnection agreement

and to ensure that subscribers do not suffer on account of

poor service.

All service providers agree to allow emergency services

like police, fire and ambulance for a period of 15 days

during which incoming facility is allowed, if technically

feasible, even after the telephone connection is

suspended.

All Service Providers agree to achieve the minimum

benchmarks prescribed by TRAI with respect to the

quality of service and also commit themselves to improve

upon the standards of service at different points of time.

Mutual courtesy and respect are the hallmarks of any

durable relationship between the Service Providers and

subscribers and both agree to abide by these principles.

Though this charter is non-justiceable, service

providers agree to strive to adhere all the points

contained in this charter and to make every effort to abide

by the charter.

Clause 7 amended as agreed in the meeting of the CAGs

and service providers held on 24th January 2006 so as to

inform the subscribers through each bill instead of

informing periodically.


18/36


State of

Consumer Awarenessin Shimla City

A customer is the most important visitor on our premises. He is not dependent on us. We are dependent on him.

He is not an interruption in our work. He is the purpose of it. He is not an outsider in our business. He is a part of it.

We are not doing him a favour by serving him. He is doing us a favour by giving us an opportunity to do so.

Mahatma Gandhi

he world is a global

village and theTconsumer is king,yet he is striving to create

a niche for himself. The

growing interdependence

of the world economy and

international character of

many business practices

have contributed to the

development of consumer

protection (Gambhir

,2007) Citizens have

always been exploited by

agencies and institutions,

both in private and public

sectors, as they are not

orgnanised formally to

take remedial action.Such complaints are more

in public utility services

like electricity, water, gas,

railways, and transport.

(Goel 2004)

The term consumer has

been defined as any

person who seeks or

acquires goods for

personal, family or

household purpose.

Moreover, the goods must

be acquired for final

consumption and not for

the purpose of

manufacture or resale

(Agarwal, 1989) Every

individual irrespective of

his age, sex, religion,

status is a consumer and

thus they are required to

exercise proper check and

caution while making

purchase of item (Sharma

2005).A Consumer is

anyone who buys or

agrees to buy any goods

for a consideration which

has been paid or promised

or partly paid and partlypromised or under any

system of deferred

payment.

Consumer also includes

any user of such goods

other than the person

who actually buys goods

and such use is made with

the approval of the

purchaser. However a

person is not a consumer

if he purchases goods for

commercial or resale

purpose (Rakesh

2000).The process of

development coupled with

increasing liberalization

and globalization across

the country has enabled

consumers to realize their

increasingly important

role in society and

governance( Aggarwal

2006).

Consumerism under

Himachal Pradesh

Consumer Protection

Rules 1988 Himachal

Pradesh State Consumer

Disputes Redressalcommission, District

Consumer Dispute

Redressal Forum were

established in 1989.

According to provisions of

these rules Himachal

Pradesh has established

four District Consumer

Disputes Redressal

Forums at Shimla, Mandi,

Kangra and Una. The

district forum Shimla has

its jurisdiction over four

Districts of Shimla,

Solan, Sirmour & Kinnaur

District. While Mandi

district forum has its

jurisdiction extended over

Districts Mandi, Kullu

and Lahual Spiti. District

forum Kangra's

jurisdiction extends over

Kangra Chamba & District

Forum Una's jurisdiction

extends over District Una,

Hamirpur and Bilaspur.

The District Consumer

Dispute Redressal Forum

has jurisdiction to

entertain the claim,where the value of the

goods and services and

compensation claimed

does not exceed Rs.20 lacs

the state consumer

dispute redressal

commission has

jurisdiction to entertain

the claims where the

value of goods and

services and

Dr. Mamta MoktaChairperson, Department of Public Administration,Himachal Pradesh University, Shimla.


19/36

compensation exceeds

Rs.20 lacs but does not

exceed Rs.1 Crore. The

complaint can be filed

within a period of 2 years

from the date, cause of

action arose within the

local limits of forum/

commission and the fee

for making complaint is

Rs.100/- for total value of

goods or services and

compensation claimed

upto Rs. One lac, Rs. 200/-

above compensation of Rs.

Two lacs to Rs. Five lacs,

Rs.400/- is the fee- above

Rs. Five lacs to Rs. Tenlacs compensation , Rs.

500 is the fee above Rs.

Ten lacs to Rs. Twenty

lacs. Fees of Rs. 2000/is

levied above compensation

of Rs. Twenty lacs to Rs.

Fifty lacs. Rs. 4000 is fees

above Rs. Fifty lacs and

upto Rs. One crore and

Rs. 5000/is the fee charges

above Rs. One crore to be

paid in the form ofCrossed Demand Draft or

Crossed Indian Postal

order. (Administrative

Report, 2006-07)

Extent of consumer

awareness Data Analysis

and Findings

The awakening among

consumer of their rights

and duties, social andlegal obligation of the

business or government

toward the consumer is

called consumer

awareness. It was found

during a study conducted

in Shimla city in 2009,

that majority of

consumers, that is

70.90% were aware of the

malpractices and 29.06 %

were not aware of them.

Only 45. 45 % had made

complain about it to the

concerned authorities.

Consumers give different

reasons for not

complaining. Majority of

respondents, that is

42.85% believed that

problem is not so serious

as to make a complaint. It

was observed that

consumers in Himachal

Pradesh do not have the

initiative to complain to

the authorities concerned

despite of the fact that

they know malpracticesare going on. 50.90%

consumers respondents

very often take cash-

receipt after purchasing

the goods. Thus majority

of consumer in Himachal

Pradesh had not fully

comprehended the

importance of cash-

receipt. Without it,

consumers, can not

exercise their rights, as aconsumer and seek

redressal before the

consumer court. Majority

of the educated

respondents have no

knowledge about

Consumers Protection

Laws and 70.90%

consumers respondents

had no knowledge of

Consumers Rights,It was

observed, that majority of

respondents i.e. 81.81%

were unaware about

World Consumer Rights

Day 15th March. With

regard to the most

significant Act, Consumer

Protection Act 1986 only

48.18% were aware of the

existence of State

Commission and 57.27%

were aware about District

Forum. But only 20% had

made complaint before

District Forum and

respondents had lodged

complaint before State

Consumer Commission.

Awareness level of

redressal procedure was

46.36 %. Those 23.07%

respondents, which were

not satisfied with the

response of redressal

machinery, have given

reason that the procedure

is very complex. Thus it

can be concluded that

much more is required to

be done in the direction ofconsumerism to make

consumers aware about

their rights.

Suggestions To Strengthen

The State Of Consumerism

In Himachal Pradesh

The consumers should

always try to purchase

standard goods of quality.

Some quality marks have

been patented by the

government such as ISI,

WOOL mark, AGG mark,

FPO, these marks ensure

the quality and minimize

the complaints.

If the goods being

purchased are subject to

guarantee or warranty,

the consumer must insist

the trader to give him

signed guarantee/warranty card.

The consumers must

ensure the date of

manufacturing expiry

date, maximum retail

prices indicated on the

packaged commodities.

Remember MRP is not a

government fixed price

and the consumer can

bargain. He must always

know that no one can sell

more than MRP.

AGG mark for

agriculture products, ISI

mark for electrical

appliances, BIS Hallmarkfor gold should always be

checked at the time of

purchase.

Consumers should

habituate themselves to

check the malpractices in

the market rather than

remain passive. They

should not hesitate to

question shopkeepers,

whenever they notice

irregularities in their

dealings, and if needed be,

report to the appropriate

authorities. The quality

testing laboratories

should be set-up in as

many places in Himachal

Pradesh as possible so

that consumers have easy

and free access to them.

Consumers must be

made to inculcate inthemselves the habit of

buying goods only after

verifying the quality,

purity, price, weight,

packing, manufacturing

date, expiry date etc.

Consumers in Himachal

Pradesh should prefer to

take cash receipt and

should always insist on it,

because this small piece of

paper is very important.

Without it consumers will

not be able to exercise

their right as a consumer

and seek redressal before

the consumer court.

As consumer education

is very important factor

which influences

consumers to act wisely

in the market, it should



20/36

be included in the syllabi

in a phased manner from

the high school level

onwards.

In order to involve

more and more youth forthe strengthening of

consumer movement in

Himachal Pradesh, it is

suggested here that

Consumer Clubs should

be opened in all the

schools of Himachal

Pradesh and efforts

should also be sincerely

made to open theses clubs

at colleges and university

level.

To strengthen the state

of consumerism in

Himachal Pradesh some

Consumer Service Guiding

Centers should be set-up

by all government

departments as well as

business houses to

maintain a close liaison

with consumers.

In Himachal Pradesh,

more people should be

involved in consumer

activities they should bemotivated to unite

themselves in consumer

organisations.

It is necessary that the

literature on the various

acts especially Consumer

Protection Act 1986,

should be supplied to the

consumers freely in

order to widen their scope

of understanding.

Consumers should be

motivated towards the

realization of consumer's

rights in the market

environment. For this,

the government which

has at its disposal all the

required resources should

take the initiative and

motivate the consumers

through the mass media.

CONCLUSION

We still have miles to

move in the direction of

consumer protection in

Himachal Pradesh. But

even longest journey

starts with small steps so

hope for better prospects

of consumerism are

expected in Himachal

Pradesh in the near

future.

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21/36

ational seminar

on Role ofNConsumerDisputes Redressal System

in India : Issues,

Challenges and

Opportunities on

12-13th March 2010 by

Professor M.C. Paul, GAE,

School of Social Sciences

of JNU, New Delhi in co-

operation with ProfessorBupinder Zutshi, CSRD.

We are happy to note here

that the Hon'ble Minister,

Prof. K.V. Thomas, MOS,

Consumer Affairs,

consented to be the Chief

Guest Since the topic of

the seminar was very

close to his heart but

could not do so. As he

said, nevertheless, in

view of some unavoidable,unforeseen, urgent and

important Parliamentary

commitment I was unable

to avail the opportunity.

All the participants were

thankful to the Hon'ble

Minister for his best

wishes and compliments

for the successful conduct

of the seminar.

About 93 participants

A Report on

Role of ConsumerDisputes Redressal System in IndiaIssues, Challenges and OpportunitiesProfessor M.C. Paul, GAE,School of Social Sciences, Jawahar Lal Nehru University, New Delhi

attended the National

seminar for two days from

all over the country

belonging to faculty and

students from IIPA,

Universities like

Pondicherry, Delhi

University, JNU

University, Government of

India, Judiciary, Senior

Advocates, NGOs/ VCOs,

Mass Media. They wereJustice J.D. Kapoor,

former President of Delhi

state Consumer

Commission, Hon'ble

Justice R.K. Batta,

Member NCDRC, Shri

Anupam Dasgupta,

Hon'ble Member, NCDRC,

Mrs. Rajyalaxmi Rao,

former member of

NCDRC, Dr. P.K. Agrawal,

former PrincipalSecretary, Department

Consumer Affairs,

Government of West

Bengal, Sri Debasis

Bagchi, former Inspector

General of Police, Dr.

Prem Lata, Member West

District Fora, Mr. P.A.

Krishnamoorthy (GTZ),

Patrick Von Braunmuhl,

GTZ (Germany), Dr. Satya

Sharma (Malaysia), Prof.

Pranab Banerjee, Prof.

Sheetal Kapoor, Prof. P.

Moorthy, Prof. Meenu

Agrawal, Advocate Rajeev

Saxena, Advocate Apurva

A. Dave, Prof. Savita

Hanspal, Dr. S.K.Kejriwal,

Dr. Ajay Kumar, Dr. O.P.

Samy, Mr. Hitoshi Ota

(Japan) Brig. Manaktala,

Capt. Dasgupta, Col.

Angad Singh, Col. Dua,Mr. Pankaj Singh,

Advocate Biraja

Mahapatra, Advocate

Atulesh Kumar, Prof. Hari

Dev Goyal, Prof. M.C. Paul

et al including many

students and faculty

members and concerned

Aam Consumers.

Welcoming the

participants Prof. M.C.

Paul, the Co-ordinator of

the National Seminar, has

underlined the fact that

this seminar is organized

as a mark of respect to the

true spirit of UN

Guidelines for Consumer

Protection (UNGCP)

issued 25 years ago in

1985. It was nonetheless

a bold step that made

some of the world leaders

to take initiative as

regards to the enactment

of special Act to protect

consumer rights from the

free market activities. So

this year is the Silver

Jubilee year for issuance

of the UN Guidelines and

it is certainly an

auspicious year for all of

us gathered here to

deliberate on the issuesand challenges of

consumer rights

p

Consumer Power - 1st Issue May 2010

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