PERCEPTION AND PRACTICES OF CONSUMER RIGHTS IN SOUTHERN DISTRICTS OF TAMIL NADU

PERCEPTION AND PRACTICES OF CONSUMER RIGHTS IN SOUTHERN DISTRICTS OF TAMIL NADU T Sangeetha Sudha Research Scholar V. O.C.College Research Department of Commerce India Dr. S. Ramesh Kumar Associate Professor and Head Research Deparment of Commerce V.O.C.College India Dr.G.Paul Raj Assistant Professor Research Department of Commerce V.O.C.College India G.Padma Parvathy Research Scholar Research Department of Commerce V.O.C.College India INTRODUCTION In the present socio-economic scenario, consumer protection plays a vital role in globally as well as locally. The growing interdependence of the world economy and international character of many business practices have contributed to the development of universal emphasis on consumer rights, protection and promotion. In a developing country like India, the consumers right to safety gives added importance to protect from the poor quality or even hazardous to health. The right to safety is important for safe and secure living (Stanly Chazhoor). Consumer protection laws are designed to ensure a fair competition and free flow of truthful information in the market place. Indian consumers are cheated through defective weights and measures to the tune of Rs. 1600 crores a year. Though government has passed several Acts and laws to protect consumers and seek redresses of their grievances they are not in a position to utilize their knowledge or are simply ignorant of these (John 1974, Gupta and Ogale, 1988). Consumer rights observe the frustrations and disappointments of Indian consumers. Indian Consumer are ignorant, illiterate and do not know the role of consumption Vis-a Vis economic system as well as quality of life. When they are ignorant of their rights, they cannot know their responsibilities as consumers. Consumers in the market find themselves deceived by wrong weights and measures, adulterated and substandard products causing great damages to health (Anand and Neelkanta). Building the capacity of consumers to work both collectively and individually, as responsible consumers can lead to fair and just commercial practices in the market place. It Volume:01, Number:01, Nov-2011 : RJCBS Page 75

will help them to attain a better quality of life for the society. In fact, the role as consumers can ensure value for money, value to people, value for the environment as well as a value to democracy and justice. (Bishan Singh, 2001).Growing internationalization during the past three decades has become one of the most pervasive influences in business today. Consumers of today s world required adequate knowledge and border range of skills than before, but they are not well organized and have suffered lack of protection. In India, consumers face problems of unfair business practices like misbranding, spurious products, unsafe products, planned obsolescence, adulteration, fictitious pricing, price collusion, deceptive packaging, false and misleading advertisements, defective warranties, hoarding, profiteering, black marketing, short weights and measures, etc. (Cochran and Bell, 1956, Single et al., 1980, and Sundaram, 1985) The root cause is low standard of living, ignorance of legitimate rights of consumer, insufficient knowledge of market conditions, lack of consumer education and many more. Government and Consumer Organisation give more importance to Consumer Protection Acts like rights and its regulatory measures than the basic needs of consumer education. Unfortunately, they are only in document level. Chandra, J.P. points out that it is the duty of the government to ensure legal support to consumer and to abolish unfair trade practices. MATERIALS AND METHODS SOURCES OF DATA COLLECTION were collected from the consumers by questionnaire and interview method. The consumers were randomly requested to fill the questionnaire. The questionnaire is divided into three parts. The first part is demographic characters. The second one is the awareness and attitudes of consumer awareness in Consumer Protection Act 1986 and Consumer Rights. The last part is the practical execution of Consumer Rights among the consumers in Tuticorin and Kanyakumari districts. Secondary data were collected from different literatures of books, published articles and websites. Keeping the objectives of the study, the researcher constructed the questionnaire to elicit required information from the consumers. The significances of the variables were tested with appropriate statistical tools. PILOT STUDY The questionnaire was pre-tested by collecting data from 95 consumers, both in urban and rural areas in November and December 2010. This helps to confirm practical applicability, clarity and to avoid unnecessary questions. The questionnaire was received and restructured on the basic of the results of the pilot study. Some new questions were added after evaluating the questionnaires in the pilot study. DATA ANALYSIS The total questionnaire issued and collected from the consumers were 1016. Equal importance was given to urban and rural consumers in Kanyakumari and Tuticorin districts. Scores for each test category (Consumer Protection Act 1986 and Rights) were calculated by assigning correct responses. Mean responses and percentages of responses in each category were computed. Cross tabulations, Chi-square tests, T test, and F test (95% confidence level) were used to compare indicators across demographic characteristics. RESULTS AND DISCUSSION AWARENESS OF CONSUMER RIGHTS When the Consumer Protection Act 1986 is implemented properly, the consumers get more protection. In this study, data were collected to test the awareness of basic rights of the Volume:01, Number:01, Nov-2011 : RJCBS Page 76

consumers including a Right to safety, Right to inform, Right to Choice, Right to be heard, Right to redress, Right to basic need and Right to consumer education. The respondents were asked to state their awareness in Consumer Rights of both districts (Table 1). H 0 There is no significant difference in the awareness and attitudes of Consumer Rights in Tuticorin and Kanyakumari district consumers. (Table 1) Table 1 DISTRICT WISE AWARENESS OF CONSUMER RIGHTS Districts N Mean Std. Deviation T value P value Right to Safety Thoothukudi 525 2.12 1.099 2.153 0.032 Kanyakumari 491 2.27 1.044 Right to Inform Thoothukudi 525 2.14 1.099 1.951 0.051 Kanyakumari 491 2.27 1.046 Right to Choice Thoothukudi 525 2.19 1.153 1.483 0.138 Kanyakumari 491 2.29 1.047 Right to be Heard Thoothukudi 525 2.18 1.146 1.518 0.129 Kanyakumari 491 2.29 1.034 Right to Redress Thoothukudi 525 2.15 1.129 1.978 0.048 Kanyakumari 491 2.29 1.039 Right to Basic Need Thoothukudi 525 2.17 1.145 2.053 0.040 Kanyakumari 491 2.31 1.050 Right to Consumer Thoothukudi 525 2.18 1.160 1.763 0.078 Right to Healthy Environment Kanyakumari 491 2.30 1.043 Thoothukudi 525 2.15 1.150 2.524 0.012 Kanyakumari 491 2.32 1.057 In this study, since P value is less than 0.05 at a five-percent level of significance, the null hypothesis is rejected. The rejection of the null hypothesis shows that Tuticorin and Kanyakumari district consumer has significant awareness in Consumer Rights. Among the different variables relating to the awareness of Consumer Rights with their respective district, it was found that Kanyakumari district consumers have high awareness of right to the healthy environment (mean value 2.32). The mean value (2.31) of Right to basic needs shows that the Kanyakumari district consumers were aware more than that of Tuticorin consumers. There is a significant relationship in Kanyakumari and Tuticorin districts consumers in the awareness of Consumer Rights. COMPLAINTS AGAINST UNFAIR TRADE PRACTICES The consumers should know the basic procedure in filing of complaints in consumer court to prevent them from the unfair trade practices. plays a vital role in the awareness of basic proceeding to file complaints against unfair trade practices. This study reveals that the educated consumers have more awareness in the proceedings to file complaints than that of uneducated consumers. Chi-square test is used to identify the significance variation in between the different levels of education in the awareness of basic proceeding to file complaints against unfair trade practices. The respondents in different levels of education were requested to indicate their awareness of complaint handling procedures and its execution during purchase of goods and services (Table 2). Volume:01, Number:01, Nov-2011 : RJCBS Page 77

Table 2 AWARENESS OF COMPLAINT HANDLING PROCEDURES-EDUCATION WISE Awareness of Proceedings to file a Total case Illiterate School Graduate Professional Awareness in filing Complaints Count 4 51 106 33 194 % within Proceedings to file a case 2.1% 26.3% 54.6% 17.0% 100.0% % within 1.3% 14.7% 36.2% 54.1% 19.1% Count 311 296 187 28 822 % within 37.8% 36.0% 22.7% 3.4% 100.0% Proceedings to file a case % within 98.7% 85.3% 63.8% 45.9% 80.9% Total Count 315 347 293 61 1016 % within 31.0% 34.2% 28.8% 6.0% 100.0% Proceedings to file a case Unawareness in filing Complaints % within 100.0% 100.0% 100.0% 100.0% 100.0% Vast majority of the consumers (80.9%) in both Kanyakumari and Tuticorin district did not know the complaint handling procedure against unfair trade practices. The unawareness of complaint handling procedure is high in the group of illiterate (37.8%) followed by school level consumers (36%) and graduate consumers (22.7%). This shows that when the level of education decreases, the awareness level of complaint handling procedures increases except professionals (2%). H 0 There is no significant difference among the consumers in different levels of education in the awareness of basic proceedings to file complaints against unfair trade practices. Value Df Asymp. Sig. (2-sided) Pearson Chi-Square 172.857 a 3 0.000* Likelihood Ratio 190.560 3 0.000 Linear-by-Linear 170.261 1 0.000 Association N of Valid Cases 1016 In this study, the P value is less than 0.05 at 5% significance level. It is concluded that there is an association between education and the awareness of basic proceedings to file complaints against unfair trade practices. Hence, awareness of basic proceedings to file complaints is based on the different levels of education. When the level of education increases, the awareness of complaints handling level also increases. When the education level decreases, the awareness level also decreases. Volume:01, Number:01, Nov-2011 : RJCBS Page 78

AWARENESS OF CONSUMER FORA AMONG RURAL AND URBAN CONSUMER The Consumer Fora have been set up under the Consumer Protection Act 1986 to provide necessary guidance and legal advice to the consumers in approaching consumer fora regarding consumer problems. The urban consumers can get more information in Consumer Protection than rural consumers. H 0 There is no significant difference in the Awareness of consumer Fora among rural and urban consumers. The main future of the Consumer Fora is simple to understand and Court fees in filing the complaints. Table 3 AWARENESS OF CONSUMER FORA AMONG URBAN AND RURAL CONSUMERS Locality N Mean Std. Deviation T value P Value District Forum Urban 500 2.85 1.013 10.524 0.000 Rural 516 2.14 1.144 State Forum Urban 500 2.86 0.991 11.037 0.000 Rural 516 2.12 1.138 National Commission Urban 500 2.89 1.000 11.371 0.000 Rural 516 2.12 1.145 Supreme Court Urban 500 3.04 0.997 12.861 0.000* Rural 516 2.17 1.154 In this study, the p value is less than 0.05 at the 5% level of significance. Therefore, the rejection of null hypothesis shows that the Rural and Urban consumer had awareness about Consumer Fora. Among the different variables relating to the awareness of Consumer Fora with their locality, it is found that Urban Consumers have high awareness of Supreme Court (mean value 3.04). The mean value of National Commission shows that the Urban Consumers were aware more than that of Rural Consumers. There is a close relationship in the awareness of consumer fora among Rural and Urban consumers. REACTION TO SUBSTANDARD PRODUCT/SERVICE AMONG MALE AND FEMALE CONSUMERS The respondents were asked to state their complaints made against the unfair trade practices through different fora. (Table 4). When the consumers were dissatisfied in the quality and quantity of the products, they can give complaint to the seller, and Consumer Fora. H 0 There is no significant difference in reaction to substandard product/service among male and female consumers. Volume:01, Number:01, Nov-2011 : RJCBS Page 79

Table 4 AWARENESS OF SUBSTANDARD PRODUCTS AND SERVICES Gender N Mean Std. Deviation T value P value Complaint to seller Male 396 3.11 0.993 0.228 0.820 Female 620 3.09 0.944 Complaint to Consumer Protection Male 396 2.97 0.949 0.773 0.440 Council Female 620 3.02 0.807 Complaint to District Forum Male 396 2.95 0.941 0.923 0.356* Female 620 3.00 0.815 No Complaint to any forum Male 396 2.85 0.984 0.741 0.459 Female 620 2.90 0.888 Table 4 denotes the variables relating to reaction to substandard product/service. In all four variables, the p value is greater than 0.05 at 5% level of significance. Hence, the null hypotheses, including all the four variables are accepted. It shows that there is no significant difference among the male and female consumers in reaction to substandard product/services. The mean value is high. Hence, there is no relationship in between male and female consumers. Both male and female consumers gave equal responses against substandard products and services. EXPERIENCE IN UNFAIR TRADE PRACTICES AMONG MALE AND FEMALE CONSUMERS. The main purpose of the Consumer Protection Act and Consumer Rights is to fight against the unfair trade practices of the unscrupulous traders. The awareness of Consumer Protection Acts and Rights avoid unfair trade practices. Both male and female consumers should have awareness in unfair trade practices to prevent or minimise the unfair trade practices. These respondents were asked their previous experiences relating to unfair trade practices of the traders (Table 5). H o There is no relationship in experience of unfair trade practices among the male and female consumers. Table 5 UNFAIR TRADE PRACTICES OF TRADERS AND CONSUMER AWARENESS Gender N Mean Std. Deviation T value P value Inferior quality Male 396 3.09 1.091 0.016 0.586 Female 620 3.12 0.976 Less quantity Male 396 3.07 1.084 0.016 0.271 Female 620 3.14 0.956 Adulteration Male 396 3.09 1.088 0.016 0.346 Female 620 3.15 0.961 Exorbitant price Male 396 3.09 1.069 0.037 0.441* Female 620 3.14 0.972 False guarantee Male 396 3.11 1.084 0.004 0.451 Female 620 3.11 0.956 Volume:01, Number:01, Nov-2011 : RJCBS Page 80

Since P value is greater than 0.05 in all variables relating to the experience of unfair trade practices, the null hypothesis is accepted at 5% level of significance. The mean value of (93.15) adulteration is high among female consumers when compare to male consumers. It is concluded that there is no relationship among the male and female consumers in the experiences of unfair trade practices. SOURCES OF INFORMATION IN DIFFERENT MEDIA. The awareness of Consumer Acts and Rights are unavoidable to every individual consumer to prevent unfair trade practices. In creating awareness, different media takes its role in different ways. The respondents were asked to state the highest sources of information available from different media relating to different products and services (Table 6). There are different types of media help the consumers to understand the products and services. In this study, data were collected from consumers in two districts to identify the media for the supply of more information relating to product and services. H 0 There is no significant difference in the different sources of information in creating awareness of products and services. Table 6 DIFFERENT SOURCES OF INFORMATION N Mean Std. Deviation F value P value Television / Radio Illiterate 315 2.91 0.627 16.021 0.000 School 347 3.36 0.922 Graduate 293 3.40 1.225 Professional 61 3.13 1.500 News Paper / Magazine Illiterate 315 2.91 0.599 19.321 0.000 School 347 3.37 0.913 Graduate 293 3.47 1.201 Professional 61 3.25 1.422 Friends and relatives Illiterate 315 2.90 0.599 17.480 0.000 School 347 3.40 0.924 Graduate 293 3.37 1.228 Professional 61 3.31 1.444 Through traders Illiterate 315 2.87 0.573 8.474 0.000 School 347 3.20 0.912 Graduate 293 3.20 1.202 Professional 61 3.03 1.366 Consumer Club Illiterate 315 2.86 0.579 8.414 0.000* School 347 3.17 0.904 Graduate 293 3.20 1.158 Professional 61 3.02 1.396 In this study p value is less than 0.05 at the five-percent level of significance. Therefore, the null hypothesis is rejected. It concluded that there is a significant a difference among different media in giving information to the consumers to create awareness of product and services. Newspaper and magazine play a vital role in creating awareness among consumers in different products and services. Mean value is 3.47. Volume:01, Number:01, Nov-2011 : RJCBS Page 81

CONSUMER PROTECTION ACT AND ITS LEVELS OF UNDERSTANDING The main features of the Consumer Protection Act 1986 are easy to understand. This Act is very simple in nature. The lay man can easy to understand the Act. Hence, we asked the consumer about their awareness of Consumer Protection Act 1986 and it simplicity (Table 7). H 0 There is no relationship among the male and female consumers in understanding Consumer Protection Act 1986. Table 7 LEVEL OF UNDERSTANDING IN CONSUMER PROTECTION ACT Gender N Mean Std. Deviation T value P value Simple Male 396 3.06 0.960 0.457 0.648 Female 620 3.09 0.913 Easy to understand Male 396 3.07 0.946 0.007 0.994 Female 620 3.07 0.900 Complicated Male 396 2.92 0.971 0.575 0.565* Female 620 2.96 0.918 Since the p value is greater than 0.05 at five percent significant level. The null hypothesis is accepted. It concluded that there is no significant difference between male and female consumers in the awareness and understanding of Consumer Protection Act 1986. In understanding the Consumer Protection Act 1986, the consumers of both male and female are equally understand. The mean value is equal to all consumers CONCLUSION Consumers are saddled with the problems of choosing between too many products with too less information. With the concentration of market in the hands of a few large corporations, it becomes important that the consumers are aware of their rights in order to ensure proper standards for the goods and services from which they make payment. Unless the consumers are aware of the constitutional provisions by government to protect the rights or the consumers the effort of the government and voluntary organisations cannot achieve the desired result (Pharameshvar 1988). The awareness and attitude of Consumer Protection Act 1986 and Consumer Rights are high in Kanyakumari district. The literacy rate is high in this district. Hence, the awareness and attitudes are based on the education of the consumers. When the level of education increases, the level of awareness also increases. Majority of respondents did not know the Consumer Protection Act 1986 and Rights. When compared to rural consumers, the urban consumers have more knowledge and awareness in consumer protection activities. There was no significant difference among the male and female consumers in the awareness of substandard products and services. The male and female consumers have equal awareness in unfair trade practices. Different media provide different information relating to Consumer Protection. In which, Newspaper and magazine plays important role in creating awareness of Consumer Protection Act 1986, Consumer Rights and products and services. There is no significant difference in understanding of Consumer Protection Act 1986 and its features. Great majority of the consumers had unaware about Consumer Acts and Rights. Government machineries and Consumer Voluntary Organizations should take special attention in creating consumer awareness relating to unfair trade Volume:01, Number:01, Nov-2011 : RJCBS Page 82

practices, consumer Acts and consumer rights. Proper awareness program should be conducted in all levels of the society. The subjects of consumer protection, consumer rights and consumer responsibilities should be introduced from primary school onwards. REFERENCES 1. Anand, & Neelkanta, B.C. (1992). Educating the Consumer. Social welfare, 37(11-12)5-6. 2. Bishan Singh, (2001). Consumer Rights and Responsibilities Code of Conduct for Ethical Business Importance of Protect Labelling. Consumer, pp. 6. 3. Bell, C. S. & Cochran, W., & (1956). The economics of Consumption, McGraw Hill. New York, pp. 13-14. 4. Chandra, J.P. (1990). Consumer Awareness, New Jersery Tamil Sangam USA/INDIA, pp. 104. 5. Gupta, M. And Ogale, N. al needs of Consumers regarding Consumer Protection Laws, Journal of Research. H.A.U. Hissar, 18(3): 236-241(1988). 6. John, M.: Awareness of Consumer Responsibilities, M.sc thesis, M.S University, Baroda (1974). 7. Muraliselvam, K. (2008). Consumer Rights and Responsibilities, Kisan world pp61-62. 8. Parameshvar, K.R. (1988). Protect Consumer against quality tricksters. Yoiana. 32(5) 29-31. 9. Singh, S. S. (1997). Management Development programmes II twelfth orientation programme for non-judicial members of consumer forum. Indian Institute of Public Administration. New Delhi, pp. 3. 10. Satya Sundram, I. (1985). Consumer Protection in India, B R Publishing Corporation, New Delhi, India. pp. 1-16. 11. Stanly Chazhoor, (2008). Consumer Rights to Safety, Southern Economist pp 37-38 *** Volume:01, Number:01, Nov-2011 : RJCBS Page 83