THE United Nations Guidelines on Consumer Protection, 1985 and United Nations Principles on Business and Human Rights, 2011 clearly state that consumer rights are human rights. It is the duty of the state in India to guarantee every citizen a right to live with human dignity, free from exploitation. This right to live with human dignity enshrined in Article 21 derives from the directive principles of state policy. The directive declares in unequivocal terms that the state shall secure a social order for the promotion of welfare of the people and shall effectively work to achieve a social order in which justice, economic and political, shall inform all the institutions.

Article 19 (1)(g) of the Constitution guarantees a right to all citizens to carry on any occupation, trade or business, thereby ensuring that the state cannot prevent a citizen from carrying on a business, except by a law imposing reasonable restrictions in the interest of the general public under Article 19 (6).

Now, the need for consumer protection is paramount in view of the fact that there is an ever increasing population and, consequently, an increasing need for many goods and services for which there is no matching supply. In India, consumer awareness has a very recent origin. The reasons appear to be lack of education, poverty, illiteracy, lack of information, and ignorance of legal rights and remedies available. Taking all of these into consideration the Indian government established the Consumer Dispute Redressal Commission/Forum under the Consumer Protection Act, 1986 (CoPRA) so that consumers could get justice. At present there are 35 state commissions, one each in a state/UT (all are currently functioning), and 629 district fora among which 601 district fora are currently working.

It is because of a shift from Caveat Emptor to Caveat Venditor that consumers are considered to be kings in a free market and the sellers are guided by the will of consumers. But even 25 years after CoPRA, its objectives have not been achieved satisfactorily because of manufacturers and service providers not doing business ethically, and due to a failure of proper implementation by state governments. There are, however, some agencies that have done excellent work for protecting the interests of consumers, one of them being the NLSIU.

 

The National Law School of India University (NLSIU) came into existence through a notification under the NLSIU Act, 1986. It signified the culmination of joint efforts by the judiciary, the Bar Council of India, the Karnataka Bar Council and the Government of Karnataka. Its main aim was to reform legal education and to establish a centre of excellence for legal education and research in India under the leadership of founder director Madhava Menon. The Chief Justice of India is the Chancellor of the University, while the Chairman, Bar Council of India, is the Chairman of the General Council. These connections lend stature and prestige to the school which is unparalleled in the history of legal education in India. NLSIU has been recognized for its innovative approach and experimentation in the pursuit of excellence in legal education since its inception.

A Consumer Law and Practice Chair (CLAP) was established in August 2008 at NLSIU by the Ministry of Consumer Affairs, Food and Public Distribution, Department of Consumer Affairs, Government of India, New Delhi, to promote research, teaching, publication and training in consumer law and practice. CLAP acts as a think tank for research and policy related issues on consumer law and practice and lays emphasis on developing consumer affairs as a distinct subject of study, both at undergraduate and postgraduate levels. A curriculum has been developed and is being taught to undergraduate and postgraduate students in law at NLSIU, encouraging and supervising candidates for research degrees, such as M.Phil, Ph.D and LL.D as well as in developing skills in this branch of law. Empirical research is also being carried out on various aspects affecting consumer affairs, besides publishing research articles in journals.

Further, the chair is providing necessary expert inputs for formulation of policy/programmes/schemes of the Department of Consumer Affairs; identifying and disseminating best practices in the field of consumer protection laws and practice; publishing, in the form of books, monographs, pamphlets to fill existing knowledge gaps, with research studies. This has been made possible with the help of the CWF grant, periodically organizing national workshops, seminars, training programmes, guest lectures, national essay competitions, regional consultations, round table conferences, students field visits, short-term training programmes for law teachers, professionals, NGOs and others.

 

A biannual newsletter, ‘March of Consumer Law and Practice’, on consumer affairs, containing brief reports on the activities of the chair, and legal developments in the field of consumer affairs is also being published. The CLAP will soon launch an annual international journal, International Journal on Consumer Law and Practice, which will include best practices of foreign countries and developments at the international level regarding consumer laws.

As legal information to support consumers becomes readily available, it is envisaged that awareness will increase and consumers will be able to exercise their rights more proactively.

For the first time in India, a one year distant education diploma course in consumer law and practice has been started and it is aimed at sensitizing people about their rights. This course provides an opportunity for candidates to receive advanced instructions in the relationship and interplay between existing consumer related legislation and the changing economic and market scenario. The diploma is specially designed to meet the needs of those whose prior education has been in a field other than law and who would like to supplement their data-base with in-depth knowledge of consumer laws.

 

This diploma is essentially a supplementary qualification, and intends to impart specialized knowledge and skills. The course is aimed at equipping every person in India with awareness about their rights. Manufacturers and service providers are also trained to learn about professional ethics, as well as their responsibilities and liabilities. It will help all professionals in their day to day activities. Many senior officers of the Ministry of Consumer Affairs have enrolled for the one year distant education course, i.e., postgraduate diploma in consumer law and practice at the NLSIU.

With government officials as well as lay consumers, especially the youth, getting exposure and training to raise the general level of awareness, it is hoped that the manufacturers and the markets will also develop more ethical processes of production and promotion.

At NLSIU, consumer protection law is being taught as an independent subject for undergraduate and postgraduate students and also as a seminar course on specific issues of consumer protection.

The students are actively involved in all the activities of the consumer chair. Every year while studying these courses, they visit consumer welfare departments like the Bureau of Indian Standards, Legal Metrology Department, Public Health Institute Department, Drugs and Cosmetics Department, and laboratories to get practical experience.

 

Despite the good consumer welfare legislation, its implementation at the state level remains woefully weak. A majority of state governments give little importance to these departments or their infrastructure, appointment and training of staff, updating lab equipment and so on. In this regard, the NLISU students provide assistance to many Karnataka government departments in their duties. For example, some students went along with drug inspectors to all blood banks in Bangalore to check their activities. Others assisted the Legal Metrology Inspectors in testing auto and taxi meters in Bangalore while students assisted government officers in providing justice to physically challenged persons.

Further, students have taken consumer protection issues seriously, and have filed eight cases relating to unfair trade practices before the district forums and state commission of Karnataka, including a public interest litigation (PIL) filed before the High Court of Karnataka for implementation of the Consumer Protection Act, 1986. All these cases are filed in their personal capacity to achieve the objective of CoPRA. The details of some cases are discussed below.

Aditya Banavar and four other students (now advocates) filed a complaint in the Consumer Forum against Pepsi for unfair trade practice. (Aditya Banavar and others vs. M/s Pepsi Co. Indian Holdings Pvt., Ltd and others; complaint no.155/2011; date of judgment 1 April 2011). The grievance was that the maximum retail prices (MRP) of certain commodities in these malls were deliberately labelled as much higher than the MRP of the commodities outside the malls, i.e., the MRP of a Pepsi can is Rs 25 outside the mall, whereas it is Rs 50 in the mall. Similarly, a Nimbooz pet bottle costing Rs 15 (MRP) is marked at Rs 50 in the mall; an Aquafina water bottle, whose MRP is Rs 15 outside, is marked at Rs 20 in the mall.

 

The students themselves argued the case before the Bangalore district consumer forum and won it. Then Pepsi filed an appeal before the Karnataka State Commission which is pending since 18 months, even though CoPRA says the case has to be disposed off within three months.

NLSIU students observed that there is no comprehensive legislation to control misleading advertisements in India. False/misleading ads are not just unethical but also violate several rights of the consumers. On basis of advertisement claims by cosmetics companies like hair damage therapy, dandruff care, energy fresh spray, slimming lotions, fairness cream for men and sun control lotions, the students purchased these cosmetics and tested them.

 

Using these products on themselves, the students found that the effect of these cosmetics did not match the claims made by manufacturers. A legal notice was then served asking for clarifications about the scientific basis for the claims – survey sample; side effects, and approval from state or central government departments. When the necessary clarifications were not forthcoming, the students filed six cases in their capacity as consumers, before the Karnataka State Commission and Bangalore District Forums for justice. One complaint was filed before the Advertisement Standard Council of India (ASCI) on 27 September 2012 to test whether it works effectively for consumers or not. So far no complaint number or reply from ASCI has been received. The details of the cases on misleading advertisements are given in the accompanying Table.

 

Empirical research on implementation of the Consumer Protection Act, 1986 in Karnataka state was done by the CLAP Chair. On the basis of its report, Basavana Gouda and four other students filed a public interest litigation (W.P. No. 50856/2012) in the Karnataka High Court. According to the petitioners, more than half of the 30 district consumer disputes redress forums, across the state, including the state commission were either without a president or lacked the stipulated number of members. While there were no consumer forums in Ramanagar, Yadgir and Chikkaballapur districts, lack of administrative staff, proper infrastructure, meagre salary for members, no established district councils and state councils etc., there were also other issues. On 2 April 2013, the Hon’ble High Court of Karnataka passed an interim order directing the state government to fill vacancies in the state commission and district forums by 31 May 2013.

In its last hearing on 3 June 2013 the High Court passed the following orders:

1. The State Commission has to finalize the shortlisted candidates/names of members and forward the same to the state government in a week’s time from this order.

2. The state government will have three weeks time from thereon to appoint all the finalized candidates and fill up all the vacancies created.

3. The petitioners were directed to make representations to the state government to set up an Additional Bench of the State Commission and also District Forums.

4. The Hon’ble Court also held that the petitioners could approach the High Court again if they feel that the Act is not being implemented, and if their representation to the state government is not responded to.

At present Indian consumers are exploited through misleading advertisements by a majority of manufacturers and service providers. In this regard, the Ministry of Consumer Affairs, Food and Public Distribution, Department of Consumer Affairs, Government of India, New Delhi, organized four regional workshops with all stakeholders at Bangalore, Kolkata, Guwahati, and Ahmedabad. The outcome pointed to the need for comprehensive legislation to control misleading advertisements and as well as strengthening of existing regulators to control misleading advertisements more effectively. As a result, the Ministry has asked NLSIU to draft a model legislation for this purpose.

 

Students are getting valuable exposure with regard to consumer protection during their five years at NLSIU. After completing their law degree, a majority of students join multinational companies in India as legal advisors, and are expected to look carefully at consumer protection issues. It is hoped that the general consumer will benefit from these appointments.

It goes without saying that without active consumer participation, the government alone cannot protect consumers from being exploited by businesses. There are numerous international and national laws to protect consumers. However, there is no doubt that the law can be effective only when consumers are alert, and authorities sincere in implementation. As the youth get trained to stand up for their rights and responsibilities as consumers, India’s future looks bright.