SPEECH OF HON’BLE MINISTER (INDEPENDENT CHARGE) OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION ON THE OCCASION OF NATIONAL CONSUMER DAY 2011 AND SILVER JUBILEE OF THE CONSUMER PROTECTION ACT,1986
Dated: 1.2.2012, IIPA Hall, New Delhi.
I am delighted to be with you today at the Inaugural Ceremony of the celebrations by the Indian Institute of Public Administration, New Delhi marking 25 years in operation of “The Consumer Protection Act, 1986” coinciding with the National Consumer Day 2011. On this momentous occasion, I take pleasure in conveying my hearty congratulations to the Department of Consumer Affairs, State Governments, VCOs, and consumer activists on their vital contribution in building the consumer protection in India into a mass movement - that too, a vibrant one.
2. We have just celebrated completion of 25 years of progressive consumer movement since the coming into force of the Consumer Protection Act. It also presents an ideal opportunity for us to re-focus on how best to meet future challenges of the consumer movement. Indeed, this is an exciting time; because, consumer policy is steadily moving into the forefront of our policy agenda. With globalization, international trade and commerce offers increasing number of new goods and services, hitherto unheard of, in the fields of insurance, transport, electricity, housing, entertainment, finance and banking. The days of the consumer with a passive role in the business equation, and being viewed just as the last stop in the supply chain, be it for goods or services, are over. Consumer policy was even seen by some to be a threat to business success. Not long ago, it was difficult for the consumer to penetrate the wall of a fortified and well organised sector of manufacturers and traders with a deeper knowledge of markets. They were at an advantage which the consumer lacked. But now we have brought about a change in how consumers are perceived in the market place – as primary driving force of economic activity. President Kennedy observed and I quote: "The consumer is the only man in our economy without a high-powered lobbyist. I intend to be that lobbyist." It shows the importance a top industrialised country accords to its consumer. Indeed, there is a growing recognition among the business world that a sound consumer policy would contribute towards successful businesses for the healthy competition that it encourages. It cannot be denied that a consumer empowered with awareness about his rights makes the market function better and thrive. An effective consumer movement drive out inefficient manufacturers out of the market and reward the efficient and innovative ones.
3. The Consumer Protection Act 1986 being the pivotal, the government, consumer activists and associations have to come together to make consumer protection movement quite successful. Consumers play a vital role in the economic system of a nation because in the absence of effective demand that emanates from them, the economy virtually collapses – because, as Mahatma Gandhi succinctly put it, "the consumer is not an interruption to our work; he is the purpose of it.”
4. Amongst the various efforts undertaken, consumer information and education will remain the two most important areas of concentration as they are the most effective means to counter the unscrupulous designs and malpractices of manufacturers and retailers alike. Consumer education is a life-long education to contribute to basic survival needs of all age groups. But among the consumers, the disadvantaged groups, particularly vulnerable to the economic and social inequalities, the low-income earners, the unemployed, the physically and mentally handicapped, the immigrant work force – all they need our special attention. “Jago Grahak Jago” is an innovative attempt at reaching these very segments of the society through the media, especially the electronic media. Educating and empowering the customer through catchy skits on the electronic media would definitely succeed in creating awareness on one’s rights as a consumer. These have proved to be not only educative but empowering too in that this attempt has shocked and surprised the layman about his rights, encouraging him to fight for his or her rights as a consumer. I have asked the Department of Consumer Affairs to examine how this could be made ever more potent through improvements in their contents, delivery mechanism, presentation, etc., so as to be able to cover still wider audience. This is all the more important as a segmented rather than a mass approach may be needed in future to disseminate consumer education through the formal and non-formal systems.
5. Completion of 25 years of implementation of Consumer Protection Act provides us with an opportunity to assess what has been achieved and what still needs to be done. The future of consumer protection will no doubt rely on co-operation between Central and State governments. The Federal system of government will mean that there will be many Constitutional constraints that restrict the Centre’s powers in many areas. A co-operative approach will result in uniform implementation of consumer protection laws and rules across all jurisdictions. A range of reforms in the Consumer Protection Act has been proposed by the Ministry of Consumer Affairs that will have an effect on the laws administered by the States. These changes will further benefit the consumers and speed up the grievance-redressing processes. We are currently gathering input from all stakeholders to assess its impact. Our future strategy will focus on the consumer and will be based on safety, information (and education), redressal and the enforcement of rights. On product safety, we are moving ahead with the revision of the Bureau of Indian Standards Act following extensive consultations with the public and the stakeholders. The amendments felt will clarify and update product safety rules. We seek to deliver more effective, co-ordinated action by market surveillance authorities, a level playing field for businesses, and above all, an internal market of safe goods for Indian consumers. The amended Act would be liberal in that it will allow manufacturers to advertise the quality of their products on their own without a certificate from the BIS. This of course will be subject to surprise checks by the BSI. The Act further stipulates that each company will have a Director in-charge of quality who will be prosecuted in case of violations on this count by the company.
6. Hall-marking of gold has been made mandatory which aims at protecting the interests of consumers and prevent frauds in sale of gold jewellery. The BIS (Amendment) Bill will empower the government to bring in compulsory certification regime any article and/or process that it considers necessary from the point of view of health, safety, environment and prevention of deceptive practice. Besides mandatory hallmarking, the amendments moved by the Ministry sought to introduce registration of relevant standards as an alternative mechanism to the compulsory certification regime to facilitate growth of sunrise sectors and protect consumers from spurious and substandard imports.
6. The future strategy of Consumer policy is to be built on three overarching objectives –
· to empower consumers and to widen choice;
· to enhance their welfare and educate them how to choose; and
· to give consumers effective protection and recourse.
In addition to effective tools for enforcement we need effective mechanisms for redressal of grievances when things go wrong. We have initiated steps with possibilities for an individual consumer to take up alternative dispute resolution mechanisms such as mediation or conciliation. Collective redress is also one area we are currently looking at.
7. I would like to mention about an essential aspect of consumer policy that we should take note of – the changing nature of consumer behaviour and aspirations. Though consumers continue to be concerned about price, choice, quality and safety, ethical considerations are also gaining grounds in the minds of consumers. And environmental concerns – particularly against the backdrop of global warming – are also being felt. Indeed, the concept of sustainable consumption at all levels – political, business and individual – will no doubt dominate policy formations in the years to come. Consumers are major contributors to environmental challenges such as climate change, air and water pollution, land use and waste. The protection of the environment and the fight against “climate change for the worst” calls for better information in areas such as energy and transportation where informed consumers could make a real difference.
8. I would like to conclude my address with three messages which I believe have great importance. First, consumer policy in India has come of age. Delivering what consumer wants is going to be the key to economic success and political credibility. Secondly, we must never lose sight of the fact that consumer’s desires and aspirations are constantly evolving, covering corporate responsibility and sustainable consumption. As the world changes, so do our attitudes and priorities. Finally, the world is getting smaller. It is becoming a global village. Interdependence between markets in the global environment demands that we grow closer together – to seek common solutions and approaches to shared problems and situations, especially in view of developments in global governance that require individual countries to adopt National standards to agree internationally. In a nutshell, national and community efforts that are complementary are essential if we have to achieve our overall objectives. More coherent consumer protection legislations through legitimacy to principles of consumer rights will work towards increasing consumer’s confidence and result in a more competitive internal market.
9. The joy of empowerment is in the availing of opportunities that exist to realize one's full potential. The dreams of a nation marching forward with contribution from all cannot become a reality until every consumer is assure of refreshing winds of empowerment, which can give them the joy of being in charge of their destiny in terms of quality products and services. All of us can be a part of this journey, by making determined, meaningful and constructive efforts that would change the life of consumers, by lending collective support. Let us all therefore, join hands together in this noble journey to celebrate the joy of empowerment of the consumers of India that will result in increased benefits to one and all and, ultimately leading to a prosperous and growing economy that will become the envy of global industrial community.
THANK YOU.
...
Dated: 1.2.2012, IIPA Hall, New Delhi.
I am delighted to be with you today at the Inaugural Ceremony of the celebrations by the Indian Institute of Public Administration, New Delhi marking 25 years in operation of “The Consumer Protection Act, 1986” coinciding with the National Consumer Day 2011. On this momentous occasion, I take pleasure in conveying my hearty congratulations to the Department of Consumer Affairs, State Governments, VCOs, and consumer activists on their vital contribution in building the consumer protection in India into a mass movement - that too, a vibrant one.
2. We have just celebrated completion of 25 years of progressive consumer movement since the coming into force of the Consumer Protection Act. It also presents an ideal opportunity for us to re-focus on how best to meet future challenges of the consumer movement. Indeed, this is an exciting time; because, consumer policy is steadily moving into the forefront of our policy agenda. With globalization, international trade and commerce offers increasing number of new goods and services, hitherto unheard of, in the fields of insurance, transport, electricity, housing, entertainment, finance and banking. The days of the consumer with a passive role in the business equation, and being viewed just as the last stop in the supply chain, be it for goods or services, are over. Consumer policy was even seen by some to be a threat to business success. Not long ago, it was difficult for the consumer to penetrate the wall of a fortified and well organised sector of manufacturers and traders with a deeper knowledge of markets. They were at an advantage which the consumer lacked. But now we have brought about a change in how consumers are perceived in the market place – as primary driving force of economic activity. President Kennedy observed and I quote: "The consumer is the only man in our economy without a high-powered lobbyist. I intend to be that lobbyist." It shows the importance a top industrialised country accords to its consumer. Indeed, there is a growing recognition among the business world that a sound consumer policy would contribute towards successful businesses for the healthy competition that it encourages. It cannot be denied that a consumer empowered with awareness about his rights makes the market function better and thrive. An effective consumer movement drive out inefficient manufacturers out of the market and reward the efficient and innovative ones.
3. The Consumer Protection Act 1986 being the pivotal, the government, consumer activists and associations have to come together to make consumer protection movement quite successful. Consumers play a vital role in the economic system of a nation because in the absence of effective demand that emanates from them, the economy virtually collapses – because, as Mahatma Gandhi succinctly put it, "the consumer is not an interruption to our work; he is the purpose of it.”
4. Amongst the various efforts undertaken, consumer information and education will remain the two most important areas of concentration as they are the most effective means to counter the unscrupulous designs and malpractices of manufacturers and retailers alike. Consumer education is a life-long education to contribute to basic survival needs of all age groups. But among the consumers, the disadvantaged groups, particularly vulnerable to the economic and social inequalities, the low-income earners, the unemployed, the physically and mentally handicapped, the immigrant work force – all they need our special attention. “Jago Grahak Jago” is an innovative attempt at reaching these very segments of the society through the media, especially the electronic media. Educating and empowering the customer through catchy skits on the electronic media would definitely succeed in creating awareness on one’s rights as a consumer. These have proved to be not only educative but empowering too in that this attempt has shocked and surprised the layman about his rights, encouraging him to fight for his or her rights as a consumer. I have asked the Department of Consumer Affairs to examine how this could be made ever more potent through improvements in their contents, delivery mechanism, presentation, etc., so as to be able to cover still wider audience. This is all the more important as a segmented rather than a mass approach may be needed in future to disseminate consumer education through the formal and non-formal systems.
5. Completion of 25 years of implementation of Consumer Protection Act provides us with an opportunity to assess what has been achieved and what still needs to be done. The future of consumer protection will no doubt rely on co-operation between Central and State governments. The Federal system of government will mean that there will be many Constitutional constraints that restrict the Centre’s powers in many areas. A co-operative approach will result in uniform implementation of consumer protection laws and rules across all jurisdictions. A range of reforms in the Consumer Protection Act has been proposed by the Ministry of Consumer Affairs that will have an effect on the laws administered by the States. These changes will further benefit the consumers and speed up the grievance-redressing processes. We are currently gathering input from all stakeholders to assess its impact. Our future strategy will focus on the consumer and will be based on safety, information (and education), redressal and the enforcement of rights. On product safety, we are moving ahead with the revision of the Bureau of Indian Standards Act following extensive consultations with the public and the stakeholders. The amendments felt will clarify and update product safety rules. We seek to deliver more effective, co-ordinated action by market surveillance authorities, a level playing field for businesses, and above all, an internal market of safe goods for Indian consumers. The amended Act would be liberal in that it will allow manufacturers to advertise the quality of their products on their own without a certificate from the BIS. This of course will be subject to surprise checks by the BSI. The Act further stipulates that each company will have a Director in-charge of quality who will be prosecuted in case of violations on this count by the company.
6. Hall-marking of gold has been made mandatory which aims at protecting the interests of consumers and prevent frauds in sale of gold jewellery. The BIS (Amendment) Bill will empower the government to bring in compulsory certification regime any article and/or process that it considers necessary from the point of view of health, safety, environment and prevention of deceptive practice. Besides mandatory hallmarking, the amendments moved by the Ministry sought to introduce registration of relevant standards as an alternative mechanism to the compulsory certification regime to facilitate growth of sunrise sectors and protect consumers from spurious and substandard imports.
6. The future strategy of Consumer policy is to be built on three overarching objectives –
· to empower consumers and to widen choice;
· to enhance their welfare and educate them how to choose; and
· to give consumers effective protection and recourse.
In addition to effective tools for enforcement we need effective mechanisms for redressal of grievances when things go wrong. We have initiated steps with possibilities for an individual consumer to take up alternative dispute resolution mechanisms such as mediation or conciliation. Collective redress is also one area we are currently looking at.
7. I would like to mention about an essential aspect of consumer policy that we should take note of – the changing nature of consumer behaviour and aspirations. Though consumers continue to be concerned about price, choice, quality and safety, ethical considerations are also gaining grounds in the minds of consumers. And environmental concerns – particularly against the backdrop of global warming – are also being felt. Indeed, the concept of sustainable consumption at all levels – political, business and individual – will no doubt dominate policy formations in the years to come. Consumers are major contributors to environmental challenges such as climate change, air and water pollution, land use and waste. The protection of the environment and the fight against “climate change for the worst” calls for better information in areas such as energy and transportation where informed consumers could make a real difference.
8. I would like to conclude my address with three messages which I believe have great importance. First, consumer policy in India has come of age. Delivering what consumer wants is going to be the key to economic success and political credibility. Secondly, we must never lose sight of the fact that consumer’s desires and aspirations are constantly evolving, covering corporate responsibility and sustainable consumption. As the world changes, so do our attitudes and priorities. Finally, the world is getting smaller. It is becoming a global village. Interdependence between markets in the global environment demands that we grow closer together – to seek common solutions and approaches to shared problems and situations, especially in view of developments in global governance that require individual countries to adopt National standards to agree internationally. In a nutshell, national and community efforts that are complementary are essential if we have to achieve our overall objectives. More coherent consumer protection legislations through legitimacy to principles of consumer rights will work towards increasing consumer’s confidence and result in a more competitive internal market.
9. The joy of empowerment is in the availing of opportunities that exist to realize one's full potential. The dreams of a nation marching forward with contribution from all cannot become a reality until every consumer is assure of refreshing winds of empowerment, which can give them the joy of being in charge of their destiny in terms of quality products and services. All of us can be a part of this journey, by making determined, meaningful and constructive efforts that would change the life of consumers, by lending collective support. Let us all therefore, join hands together in this noble journey to celebrate the joy of empowerment of the consumers of India that will result in increased benefits to one and all and, ultimately leading to a prosperous and growing economy that will become the envy of global industrial community.
THANK YOU.
...
