Two Day National Seminar on Consumer Protection: New Age Challenges

Transcription

1 Two Day National Seminar on Consumer Protection: New Age Challenges in collaboration with National Law University, Delhi (February 19-20, 2016) The Centre for Consumer Studies, Indian Institute of Public Administration, New Delhi in collaboration with the National Law University Delhi organized Two Day National Seminar on Consumer Protection: New Age Challenges on February 19-20, The Seminar was sponsored by Department of Consumer Affairs, Ministry of Consumer Affairs, Food and Public Distribution, Government of India. The Objective of the Seminar was to provide a platform for deliberations and generate discussions amongst legal luminaries, academics, members of Voluntary Consumer Organizations (VCOs) and enforcement agencies on the various emerging issues in the area of consumer protection at a time when the Government is endeavoring to amend the Consumer Protection Act, The Seminar was attended by more than 100 participants which included academia, researchers, students, Members of VCOs, lawyers and Government officials. Participants of the programme 1

2 The inaugural session of the programme began with the Welcome Address by Prof. G.S. Bajpai, Registrar, National Law University Delhi who emphasized the need to constantly review and revise the provision of the Consumer Protection Act in the light of the ever-growing and complex market structures. Dr. Bajpai said that the seminar on consumer protection is a part of activities NLU has been undertaking on various issues. Consumer protection has two sides -Theoretical and functional. The Consumer Rights gained impetus when in1962 Kennedy mentioned that if consumer is not empowered then money he spends gets wasted. To provide adequate protection to Indian consumers Consumer Protection Act was enacted in years have passed after the enactment of the Act and there are new and emerging areas which are threatening consumer sovereignty and positing threat for their empowerment like food safety, negligence and defective products. Some of the emerging issues the seminars in going to refer to are: e-commerce, direct selling, products liability etc. Welcome Address by Prof. G.S. Bajpai, Registrar, National Law University Delhi The standard form contract is another area where the consumers have no option and he is vulnerable to be exploited. Related to these there are provisions in the new Bill pending before Parliament. This is a good opportunity to address some of these issues raised in this New Bill. There are couples of developments which should become part of the consumer advocacy. There is huge scope for law University to contribute to this area. There are many micro levels and sectoral studies which need to be undertaken in this area. These areas should be identified for the purpose of research and study. 2

3 Hon ble Justice (Dr.) B.S. Chauhan, Chairman, Cauvery Water Dispute Tribunal and Former Judge, Supreme Court of India, delivering Inaugural Address Hon ble Justice (Dr.) B.S. Chauhan, Chairman, Cauvery Water Dispute Tribunal and former Judge, Supreme Court of India, delivered the inaugural speech in which he highlighted the plight of Indian consumers and how their rights are violated day in and day out by especially focusing on the consumers of e-transactions and real estate sector. He said that we are discussing consumer rights today which have been part of our culture from ancient times. There have been provisions in our ancient texts for protection of consumers from fraudulent and unfair trade practices. It then became part of law of torts as caveat emptor. Then it became part as part of law of ethic and morality. It was established that the manufacturer be responsible to ultimate consumer. Mahatma Gandhi also said that consumer is the most important visitor to our premises, he is not interruption to the business but he is the very purpose of it. The whole economy is based on consumer but problem is that consumers are not united. Codification of consumer laws started in British times. In 1984 MRTP Act was amended and a chapter was introduced to deal with unfair trade practices. In 1986 Consumer Protection Act was enacted to give better protection to consumers. It is a progressive piece of Participants presenting their Paper legislation as it is compensatory in natural whereas others were punitive in natural. It provides for quick, speedy and easy justice. Consumer justice means that consumer should get what he has paid for. He should get value for money and a fair deal. The contracts are one sided and limit the rights of consumers. There are terms like 'Goods once sold will not be returned back' imposed on consumers which are unfair trade practices and completely illegal. 3

4 Advertisements are also unfair trade practices as these push people to buy things that they do not need and at prices which is much higher than usual price. The sale of products like freedom 251 which is promising to give smart phone for Rs.251/- where as the minimum price of a smart phone is Rs.2000/-. We are being lured with these kinds of advertisements and we get tempted and duped. In order to attract, women are being shown in the advertisements of products with which they have nothing to do. The rural consumers are most vulnerable. They depend on weekly markets and do not have choice. They are given spurious, fake, substandard products and they are completely helpless as lack the awareness regarding the remedies. Dr. Jeet Singh Mann & Ms Deepika Sur chairing one of the session Medical negligence is a very critical area. Doctors have been opposing their inclusion under the Consumer Protection Act. The ethical services like medical and education are also becoming business. All sort of unscrupulous activities are being undertaken. The Supreme Court has held in relation to education that it is not a Commodity and imparting education is not a service under this Act and anyone who has problem should go to the civil court. Further anything done for commercial purpose is not covered in under the Act. E-Commerce creates a problem of jurisdiction. The goods are booked online and delivered through courier. The company is placed outside India. The question consumer faces is where to file complaint? The e-commerce has no boundary. It has been reduced to a global village. There are serious threats of quality and after sale service in e-commerce. There are also complaints against consumers of criminal prosecution of cheating e-retailers. The redressal machinery under the Act faces many problems. The foras need infrastructure and other facilities to decide the matter within the prescribed time limit. The quality of members and pendency are also major concerns. To overcome shortcomings of the old Act, New CP Bill 2015 is being introduced which provides for C.P. Authority, Product liability and mediation. Enforcement of law always depends on 4

5 the acceptability of the law by the society and enforcement of it by the state machinery. Merely enacting the law will not solve the problem. The people need to be educated about it and made aware. He ended by saying that no legislation is successful without proper implementation and will of enforcement agencies. And hoped that some of the defects in the present legislation will be cured by the Consumer Protection Bill, Dr. Sushila, Seminar Convener & Assistant Professor, National Law University Delhi in her Introductory Remarks said that this two day national seminar has been organized to deliberate and discuss the consumer issues which have originated with the evolution of technology. Though CP Act has been amended from time to time but globalization and liberalization have thrown new challenges for it to deal with. These issues also need to be addressed through sectoral regulators and regulation. The competition law also needs to be enforced. Keeping in view these issues the seminar themes and sub-themes have been designed. It is hoped that the seminar will result in deliberations and discussions resulting in suggestions which will provide inputs for policy-making. Besides the Inaugural and Valedictory Sessions there were Eleven Technical Sessions on various issues of Consumer Protection. The Sessions were on: Empowering Consumers; Food Safety and Standards; E-commerce and Consumer Protection; Goods/Services and Consumer Protection; Consumer Protection Legislations; Misleading Advertisements; Role of Sectoral Regulators; New Age Challenges. In these technical sessions more than 100 participants presented their papers on the key issues pertaining to e-commerce, misleading advertisements, role of sectoral regulators, food safety, the legislative changes & reforms and other related and attendant aspects. The technical sessions were chaired and co-chaired by eminent and distinguished persons. 5 Dr Sheetal Kapoor chairing Session on Misleading Advertisement and Consumer

6 Prof. (Dr.) Ranbir Singh, Vice Chancellor, National Law University, Delhi addressing the participants The Valedictory Session began with the Welcome Address by Prof. (Dr.) Ranbir Singh, Vice Chancellor, National Law University, Delhi. Welcoming Hon ble Justice Geeta Mittal and other dignitaries nad participants he briefly provided the details of the two Day Seminar. He said that in the two days eleven sessions were conducted on different themes of consumerism. In each session around eleven papers were presented. The topics varied from food safety, food wastage, spurious goods, new challengers for consumer protection and plethora of other issues. This has been momentous year for the University as it has achieved success in academics. The Road Scholarship, Oxford University has been begged by NLU and other by Delhi University. Prof. Gail Pearson, University of Sydney, Australia in her Address said that there is commonality of issues between the Consumer law of Australia and India. The issues like-protection of digital consumer, regulatory design for unfair terms, recall of products, awareness and literacy issues are affecting both the countries. As regards the e- commerce and digital consumerism are concerned there is need for international cooperation and harmonization. There is need to address the issue of regulatory compliance by the business as it is very important for the consumer protection. The Business need to be conscious about consumer satisfaction. Shri S.K. Virmani, Project Manager, SCHKRMP, CCS, IIPA said that Consumer empowerment is a major issue in India with a 125 crore population all of who are consumers. Consumer empowerment should start at pre purchase stage. The Consumer should get the best quality of products/services, for optimum use Concluding Remarks by Shri S.K. Virmani, Project Manager, SCHKRMP, CCS, IIPA at cheapest possible price with an ability to get appropriate redressal to the complaints. Consumer 6

7 should be able to buy good product at proper price through various reviews. Internet shopping is getting more and more retail business. Many complaints of fake sites, faulty products, poor after sale services are coming. Non availability of the name and address of the company is a major issue in e-commerce. Banks are collecting charges from consumers which consumers do not know for what. There is need for transparency in functioning of the service providers. Consumers need information and need to be aware whether it is real estate or sweet shop. He also shared the working of consumer helplines which provide information and help to the consumers and also act as alternate mode of grievance redressal. Hon ble Justice Geeta Mittal, Judge, Delhi High Court in her Valedictory Address said that she was impressed with the wide coverage of the subject matter and variety of issues discussed during the two days, all of which affect us all as consumers. Consumerism has evolved due to globalization. Modern technological developments have great impact on the quality, availability and safety of goods and services. The globalization has made available variety of goods and services to the consumers. But at the same time has made him more vulnerable to exploitation. The fact remains that the consumers are still victims of unscrupulous and exploitative practices. Exploitation of consumers assumes numerous forms such as adulteration of food, spurious drugs, dubious hire purchase plans, high prices, poor quality, deficient services, deceptive advertisements, hazardous products, black marketing and many more. In addition, with revolution in information technology newer kinds of challenges are thrown on the consumer and system to deal with like cyber crimes, plastic money etc., which affect the consumer in even bigger way. Consumer is Sovereign ; king is a myth. Actually he has become slave of modern markets. He is a victim of the exploitative practices of the market. This has led to universal emphasis on consumer protection and consume welfare. Hon ble Justice Geeta Mittal, Judge, Delhi High Court delivering Valedictory Address 7

8 Though consumer protection has been part of our culture from ancient times. But Consumer protection has received importance internationally in 1962 when Bill of Consumer Rights was introduced in U.S. Congress by then president John F. Kennedy. Another milestone was in April 1985 when Un introduced Guidelines on Consumer Protection which formed basic structure for countries for the policy on Consumer Protection. In India there were various laws besides Constitution for protections of consumers. However, the major step in this direction came in 1986 with enactment of C.P. Act. In modern markets new delivery systems have given new opportunities but have left consumers more vulnerable. Misleading Advertisements, direct selling, e-commerce have put consumers in more helpless situation. Plight of consumer is dismal. Indian consumers are very patient. As a consequence he continues to suffer in silence. The things are changing but slowly. There are Forums and Councils for consumer protection. In last 30 years consumer courts have given many path breaking judgments in various areas. The consumer empowerment holds the key. These judgments have given reliefs to many consumers. These have inculcated consumers belief in the system and confidence in consumers to fight for their rights. The redressal mechanism needs to be further empowered and strengthened to deal with new emerging issues like e-commerce. Globalization has led to aggressive marketing which raises question to the truthfulness of claims. These misleading claims effects safety and choice of consumer. Self regulation is not a substitute for regulation. The laws cannot protect alone. The sectoral regulators also need to act proactively. Competition law has to be given importance to protect interests of consumers. The aim of law is also to ensure consumer interest in markets. There must also be emphasis on ethical consumerism to purchases products which lowers societal and environmental Moral boycott of environmentally hazardous products is also needed. This is the basic duty of the consumers. Present regulatory and legal regime need to be reviewed. The sectoral regulators will play important role in future. There is need for empowerment of 8

9 consumer as a class. The seminars of this type are required for educating and empowering consumers. Prof. (Dr.) G.S. Bajpai, Registrar, National Law University, Delhi in his Remarks said that the outcomes of the seminar need to be channelized. The seminar has received over whelming response. More than 200 papers were received. Consumer protection is one area, which till now was engaged in only by the activists. But even law universities can also play an important role in this area. It can engage faculty and students in the impact assessment of consumer protection legislations. With the new Bill coming, it is important opportunity to gather the ideas generated during the seminar and develop a hypothesis. Consumer advocacy clinic can be organized to connect with common people and generate awareness. The papers presented during the Seminar should be brough out in thr form of a book which will be a good outcome of the seminar and will be good resource for the people working in this area. This will also help in sustaining the ideas generated here. The Seminar ended with the Vote of Thanks by Dr. Prem Chand, Assistant Professor, National Law University, Delhi. (Sapna Chadah) (Suresh Misra) Seminar Coordinators 9