National Seminar on Globalisation, Market and Consumer Protection at Department of Political Science, Kumaun University, Nainital

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National Seminar on Globalisation, Market and Consumer Protection at Department of Political Science, Kumaun University, Nainital (November 1-2, 2011) The Centre for Consumer Studies, IIPA organized

1 National Seminar on Globalisation, Market and Consumer Protection at Department of Political Science, Kumaun University, Nainital (November 1-2, 2011) The Centre for Consumer Studies, IIPA organized two day National Seminar on Globalisation, Market and Consumer Protection on November 1-2, 2011 in collaboration with Department of Political Science, Kumaun University, Nainital. Around 100 participants participated in the seminar which included academicians from various universities in India, researches, members from civil society organizations and students. In the seminar around 35 papers were presented on the impact of globalisation on consumerism and need for protection. Lighting of Ceremonial Lamp by the dignitaries 1

The seminar began with the Welcome Address by Prof. Madhurendra Kumar, Professor, Department of Political Science and Convener of Seminar. He welcomed all the dignitaries and other participants.

It has made variety of goods and services available to the consumers however, it has increased the chances of the consumers being cheated because of information asymmetries that usually exist with

2 The seminar began with the Welcome Address by Prof. Madhurendra Kumar, Professor, Department of Political Science and Convener of Seminar. He welcomed all the dignitaries and other participants. He said that the Department of Political Science has always taken a lead in organising seminars on contemporary issues of this type. Globalization no doubt has opened new channels for consumers. It has made variety of goods and services available to the consumers however, it has increased the chances of the consumers being cheated because of information asymmetries that usually exist with buyers being at the mercy of much better informed sellers and so arises a need to protect consumers. It is time to overcome this problem through education, legislation and the creation of appropriate institutional mechanism. While globalisation may have created problems, it provides an opportunity to solve some consumer problems. The deliberations at the seminar will no doubt provide ideas and mechanisms to deal with the emerging problems. Prof. Madhurendra Kumar, Professor, Department of Political Science delivering the Welcome Address Prof. Suresh Misra, Chair-professor and Coordinator, CCS, IIPA addressing the participants 2 Prof. Suresh Misra, Chair Professor and Coordinator, Centre for Consumer Studies, IIPA in his address extended a warm welcome to all he said that in this silver jubilee year of enactment of the Consumer Protection Act we are organising a series of programmes on a number of issues of seminal importance related to consumer protection to generate awareness among consumers about their consumer

3 rights. One of the objectives of this seminar is also to integrate university/ colleges in consumer movement. The idea is to provide a platform to various people from disciples to carry such activities. The Centre for Consumer Studies was established in 2007 with aim to generate consumer awareness. We organise training programme, seminars, conference and also conduct research. We also hold workshops for faculty members in Research Methodology and Consumer Protection. The idea is to involve teachers and students in the consumer movement as they can be instrumental in taking the message to the society. Though the consumer movement is very old in the country but it has not taken up in the way it should have been. There is need to take the movement forward especially in the era of globalisation when the consumers are bombarded with all sort of goods and services about the quality of which the consumer has no surety. At present we had left it on the government. and NGOs to take the whole responsibility. But the consumer movement will not become effective unless the consumers join the movement. Our objective is to integrate teachers, students in the movement to make it more effective. Address by Prof. B.R. Kaushal, Director, DSB Prof. B.R. Kaushal, Director, DSB Campus in his address said that free flow of goods has influenced the life of all of us irrespective of region and country. Economic factor now governs the international relation and market forces are influencing consumer. This no doubt has enhanced competition and has stimulated innovativeness, quality improvements, and cost effectiveness. However, this free market is associated with both advantages and disadvantages. Most free market products and services have relatively short life cycles as they become obsolete very soon either technologically or psychologically. Now most of the 3

consumer decisions are influenced by advertisements leading to a major impact on purchase decision. All sort of wrong information is being passed on to the consumers through advertising.

4 consumer decisions are influenced by advertisements leading to a major impact on purchase decision. All sort of wrong information is being passed on to the consumers through advertising. Consumer is in state of dilemma. How to address these issues that pinch consumers is the major problem in this era of globalisation. Functionaries have to ensure that consumers interests are protected. And still pertinent is the question as to how to protect the interest of poorer and vulnerable sections of society. Some meaningful suggestions will definitely emerge from the deliberations in designing the two days throwing some light on important issues in the globalised markets. Prof. Sanjeev Kumar Sharma, Professor, Department of Political Science, CCS University and General Secretary, IPSA was the Guest of Honour on the occasion. In his address he said that the evolution of state has been for overall development of individual which also relates to personal rights. That s why it is very important concentrate on individual s development instead of laws and institutions. In the move of individual becoming a consumer rather than a citizen he has forgotten his duties toward state and his rights have become more important. He is concentrating merely on his rights as consumers. In this scenario the individual has high expectations from the state. It is expected that the state will protect the individual from any kind of injustice done by the market forces. Today besides concentrating on institutional and legal development, there is also need to concentrate on individual development, for development of a good citizen. Prof. R. R. Jha, Director, Canadian Studies Development Programme, BHU, Varanasi in his address said that it is sad that universities have not taken much interest in the issues of social concern and have forgotten that university can play a very important role in nation building. Now government has realised Prof. R. R. Jha, Director, Canadian Studies Development Programme, BHU speaking on the occasion 4

this and has started integrating universities in many socio-economic issues. This is very important if India has to emerge as a strong nation in the global front.

5 this and has started integrating universities in many socio-economic issues. This is very important if India has to emerge as a strong nation in the global front. The students are required to rope in important issues like consumer protection and this has to start from the school level. Marx has long back said that change in technology has led to changes in society. The emergence of information technology has brought in globalisation of economy and emergence of global markets. Today the emphasis is on market. The question is: what the end product of globalisation is? Even in this globalised world the gap between rich and poor is increasing. Does that not necessitate that we think about globalisation seriously. We have to regulate market and the state has to play interventionist role. We need to examine whether the borders have really vanished. What changes have occurred, how markets really function? Are consumers really protected in the market place?; If not what remedies they have. The affect of globalisation has to be seen both in developed and developing countries. How privatisation is functioning; is it effective? These issues need to be deliberated upon in the two day seminar for better protection of consumer rights. Prof. Girijesh Pant, Vice-Chancellor, Doon University in his Inaugural Address said that the relationship between globalisation, market and consumer protection is of strenuous kind. Globalisation is market driven phenomenon. Prime mover in capitalism is profit. It is to enhance Prof. Girijesh Pant, Vice-Chancellor, Doon University delivering the Inaugural Address the rate of profit, essentially to enhance and maximise the profit. The main motive of development of Information Communication Technology is also to enhance profit. This phenomenon is gradually moving beyond the national boundaries. This is what we are visualising today in our country as well. 5

Today the development of markets is taking place globally. You will find that even the developed markets are undergoing a change. Now the concerns for such markets are also global markets.

6 Today the development of markets is taking place globally. You will find that even the developed markets are undergoing a change. Now the concerns for such markets are also global markets. We call India an agrarian economy but the truth is that maximum people depend on service sector. 8 to 9% growth comes from the service sector. ADB report tells that by 2050 more than 50%of GDP will come from Asian countries. The report also states that even Chinese economy growth rate too depends on South Asian countries. As we are in a very interesting time many assumptions on which we were building state and markets are undergoing change. On one hand we are seeing polarisation and shrinking of national economies and people are getting excluded from market. Second the growth is dispersed which was confined earlier to western countries in light of maximisation of profit. The new growth which has emerged in developing markets has created new emerging middle class. It is very will defined by market forces. Much of our consumer behaviour is now influenced by what is happening on global market. Participants during one of the sessions The Indian market is undergoing a very radical change. The globalisation on one side empowers consumers and on the other side disempowers with the information it gives. The internet gives you a new space and all sort of information which empowers the consumer to make better 6

choices and on the other hand Tsunami of information puts you in lot of confusion. He is confused as how to make choices. This is a paradox of globalisation.

7 choices and on the other hand Tsunami of information puts you in lot of confusion. He is confused as how to make choices. This is a paradox of globalisation. Since the scale of market has increased tremendously 1/15 th of total population is middle class it is going to become 30% in times to come. Our taste and preferences are now driven by something coming from outside. A significant part of our consumption today is what was once part of western society and is coming from western markets. As markets are getting integrated into the global market, the products from all over the globe are becoming part of this market. Participants of the National Seminar Dynamic changes are being witnessed in the market. In the absence of strong state a number of malpractices are coming into the market. Ethics are being ignored by markets. When states within the global market are loosing their power then the challenge is how to control the markets. Technology for the first time has given tremendous power. There is need to link consumer movement with technology as the consumer is passive participant and not so powerful to bargain in the market. By linking the consumer movement with technology the consumers can be given a lot of information which he does not have at present. The market forces are using this technology through advertisements and are trying to influence our consumption patterns. Markets are very powerful and the state weak in globalisation. The only way to protect 7

8 ourselves is through our own initiatives. The state is becoming more of a facilitator and consumers themselves should take initiative in this movement. Empowering the consumer means empowering ourselves. The consumers have to be a stakeholder in defining business ethics. The students look forward to their teachers for their behaviour. There is need for the teachers also to bring change in their behaviour as it would send a positive message to the students. The teachers should join in the consumer movement which will motivate even the students to participate in it. The teachers and students can definitely play an important role in fighting against the evils of market. In her Presidential Remarks Prof. Lata Joshi, Officiating Vice Chancellor, Kumaun University said that consumer protection has become an important and relevant topic in this globalised world where the markets have become much more powerful. Science and technology has made the world a global village. Now things manufactured in one country can be sold and bought in any country across the world through the internet. Thereby marking a variety of goods and services available to the consumers; but it needs to be seen at what cost. We need to introspect where we stand today and in which direction we have to move from here. We in India have escaped ill - consequences of over consumption and luxury life style till today as we believe in saving for the future. Mahatma Gandhi has once said that the earth has enough for everyone s need but not for greed. We in India have taken the advantage of outsourcing in many sectors which has benefitted even consumers. However globalisation is socio political issue which needs to be properly regulated by all countries rich or poor. Besides regulation by the government there is also need to inform and educate consumers. The government should take proper initiatives to regulate issues like misleading advertisements which is becoming a menace for consumers in this globalised world. I hope that this seminar will be a step to inform all about their rights and responsibilities as consumers and will achieve the desired purpose. 8

across the country. The sessions were interactive and followed by questions from participants and discussions.

9 One of the participants presenting the paper The seminar was divided into four technical session which in around 35 papers were presented by various academicians, researchers, and students from various universities across the country. The sessions were interactive and followed by questions from participants and discussions. Third technical session chaired by Prof. V.K. Roy, Allahabad University and Dr. Ripusudan Singh, BBAU, Lucknow 9

10 The Valedictory Session, the concluding session of the two day seminar began with presentation of a brief report by Prof. Madhurendra Kumar, Professor, Department of Political Science and Convener of Seminar of the seminar. He said that around papers were presented on difference aspect of globalisation, market and consumer protection in the two day seminar. This seminar was one of the landmarks in the series of programme held on the silver jubilee year of enactment of Consumer Protection Act. It was an attempt to educate and make consumers aware of their rights and remedies available to them. The students through this seminar have been introduced to a new area about which they were not aware and will be definitely going back with a strong orientation on the issue. It is more important to proliferate the message in the wider interest of the society. Prof. Suresh Misra, Chair Professor and Coordinator, CCS was the Guest of Honour on the occasion. He said that even if 10 out of 100 people present here take the message along it is a good sign for consumer movement. Around 35 papers have been presented on various aspects of globalisation, market and consumer protection which have raised many pertinent questions and many solutions to the problem have been put forward in these two days. Globalisation has changed the world, the way we think and consume. Market is very tempting today. You go to market with no idea to buy but come out with so many packets with which you just do not know what to do. He said today the aspirations and desires of consumers are very high. The whole theory is Dil Mange More. Buy one get four free or even buy one get seven free, such schemes are nothing but exploitation of consumers. What is the economic behind such advertisements nobody can make out. We are all victims of these unfair trade practices but we don t know what to do. We have been lost in the globalised world. But are we happy in this world. It has become a competitive world; we want a thing only because our neighbour has it. Even if we don t have the money to buy it the plastic money, EMI schemes help us to fulfil our desires. There are lot of issues in consumer movement. We have to decide where we have to stop, to make a rational decision. Market has always been tempting but we have to develop a control. 10

11 Today the needs and aspiration of present generation are quite different. They believe in spending more and more and not saving. There is a need to make this generation aware. The younger generation is a generation of consumption. The thing which is to be seen is whether we are really happy. Happiness is beyond what we are looking at. There has been a transition from citizen to customer to consumer. The most of problems we are having are basically due to high level of consumption as the desires and wants have become needs. The basic objective of the consumer movement is to make people think that we really need and how much do we really need. As a society we have to decide these issues. The institutions, laws are merely secondary solution to this. There is not much difference in attitude among the urban and rural consumers; both go on purchasing without applying their mind. Most of us are silent sufferers as consumers. We do not take up the issue, firstly because of ignorance about our right and also the redressal mechanism and secondly we enjoy being cheated. But the people who have gone to the Forums and Commissions have got the redress. The sensitivity on consumer protection is not there. Telemarketing was a great nuisance but no body took the initiative unless one person filed a complaint in the District Forum which went upto State Commission and the do not disturb registry was started. Similarly the Delhi SCDRC gave relief in the Khandhar Hijacking case for mental agony where the civil court failed to give relief. Till now 35 lakh cases how have been filed in these forums / commissions. The Consumer Protection Act was enacted in 1986 and this year is the silver jubilee year of its enactment. The irony is that even after 25 years of its enactment we are still thinking how to take consumer movement forward. The misleading ads, spurious goods and sale promotion schemes are nothing but means to exploit consumers. MRP is also a legalized way to befool and exploit consumer. The consumer today does not know who is selling the product or giving the services. The problem is that the consumer movement is not organized and people are not united to fight for their rights. To generate awareness among masses the Department of Consumer Affairs has taken up 11

12 a number of schemes and policies. The consumer protection has been added in the school curriculum. The consumer club scheme is being revamped to enable schools to involve young students more and more in such activities. To generate Awareness there is need for the Universities to take initiatives like starting consumer clubs, setting up Chair Professor in Consumer Studies etc. These are the things for which there are provisions in 12 th plan and the Department of Consumer Affairs, GoI is ready to fund. When we talk of consumerism we cannot look at ourselves as isolated islands. We always get affected by what is going around us. When we buy something do ask question, bargain and counter the traders then only he will listen to you; whenever you are cheated raise your voice and ask for redressal. That is your right. The students and teachers are very important link in this movement and have a duty to take this movement forward. Prof. R. R. Jha, Former Head, Department of Political Science & Director, Canadian Studies Development Programme, BHU, Varanasi, delivered the Valedictory Address on the occasion. He said that the globalisation has affected our lives both in positive and negative ways. In globalised economies profit is the prime motive. The MNCs which are into business of packaged drinking water make you feel and understand that water you are getting is not good and we should also like the people in the developed world start drinking the packaged water. Such campaigns by them though send a wrong message to the consumers but force them to change their behaviour. In the process of globalisation there has been weakening of state. This idea given by the corporate world was that there is borderless world. They wanted to use the forces of globalisation for their benefit. The basic question is how much of it is by design and how much autonomously. When you have information technology based society and impact of globalisation the society will not remain same, it is bound to change. The state has weakened and market has been made important. However, it merely highlights the peripheral issues and not the important substantive issues. If the principles of democracy can be applied to market then it can act for 12

13 benefit of all. The principles of equality etc. are required to be applied, civil society is supposed to fill in the gaps and take over some of the function of the state. The question here arises is civil society is in this position in India. It is not so and it has a long way to go. The citizen has become customer & customer a consumer. Consumer subsides are reducing. The state is not in a position to restrict or check some of the forces of globalised market. How much is the civil society in position to check this? In a developing society like India can we change the forces of globalisation? If we can we should do; if we cannot then we should try to reduce the negative impacts. The consumer is important and so is the consumer protection and awareness. What cannot be cured must be endured. The bad impacts of globalisation coming from corporate world must be dealt with properly. The seminar has no doubt given clarity on a number of issues relating to globalisation, markets consumer protection and has definitely made us think and take up such issues in future. (Mamta Pathania) (Sapna Chadah) (Suresh Misra) Seminar Coordinators 13

Two days National Seminar on Consumer Protection and Consumer Welfare

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