Despite many changes, consumer protection is weak and not taken seriously by many companies. Besides, many consumers in rural areas cannot afford legal remedy
Consumer Protection Act 2019 needs root-level changes either in the Act itself or by modifications in rules so that the need for filing complaints may not arise. A very small fraction of consumers approach consumer forums for their consumer rights against the malpractices of big manufacturers.
Portal Jago-Grahak-Jago on the website of the Department of Consumer Affairs (Government of India) acts like a post office to deliver eye-wash replies from companies against whom complaints are lodged. Consumers are advised to approach Consumer Court if they are not satisfied with the replies of the companies received through the portal. The portal must be made practically effective with the Department made to scrutinise replies from the companies, and take the matter further in case replies are found unsatisfactory.
It should be made compulsory that all companies on their websites provide contact details including names of concerned senior officers and Directors. All such websites of companies should compulsorily give details of government portals and consumer forms. Annual-Maintenance-Contracts (AMCs) should be practically made Extended Warranties since most companies fool consumers by not entertaining many aspects covered under AMCs.
All packaged commodities must be packed in the true metric spirit in either unit of 1, 2, 5, 10, 20, 50, 100, 200, 500, or 1000 and thereafter in multiples of 1000 basic units abolishing any need for printing unit-price on packs. A popular milk brand (Namaste-India) has started packaging milk packs in 950 meters and 1900 meters to look like earlier packs of 500 meters and one litre respectively. There are so many packages in milk and milk products like 400 mltrs, and 450 mltrs, confusing consumers to look like 500 mltrs.
Drug manufacturers at times cheat consumers by packing commonly advertised medicines like cough lozenges in eight per strip rather than the normal ten. Many drug manufacturers started packing medicines in strips of 15 rather than 10 simply to increase sales. The suggested packaging system may be for medicines unless exemption is sought from the competent authority for dose-wise administration. At times free gifts given by manufacturers to promote other products are swallowed by traders. The system should be to tie free gifts with marketed products. “Not for sale alone” should be prominently printed on the free gift.
Commodities like Ghee are packed in litres in packs of 1 or 5 litres, but in packs of 15 kgs. A uniform system should be for marketing such products either by weight or by volume. Since the Supreme Court has allowed the use of A-4 size paper, any further production of legal-size paper must be banned. A slight modification in A-4 size paper is made from the present 29.5 cms x 21 cms to 30 cms x 20 cm to be in tune with the metric spirit.
Commodities with government-administered prices should be in round figure of rupee one per unit (like for petrol-diesel) and in multiples of rupee ten in commodities having sale price above rupees 100 (like LPG refill). It will not affect consumers, since delivery-persons never return balance coins. Rounding-off prices can earn extra revenue for governments.
Since the Federation of Hotel and Restaurant Association of India and the National Restaurant Association of India challenged guidelines issued by the Central Consumer Protection Authority on levying service in bills of hotels and restaurants in the court, the Consumer Protection Act should be amended so that hotels and restaurants may not be able to impose any extra levy other than government-taxes. Moreover, the Consumer Protection Act should ban the colonial practice of paying tips directing hotels and restaurants to prominently display “No Tips” boards.
India being the largest consumer base, can impose conditions on foreign companies exporting commodities to India to set up their manufacturing units in India especially when many such foreign companies flood Indian markets with products manufactured in countries other than the country of origin. An example is the setting of the biggest manufacturing plant of Samsung mobile phones in Noida (UP). It will result in huge earnings of foreign exchange by way of export from India rather than the drain of foreign exchange in importing such commodities. The union government should ban the import of items that are already available in India of much superior quality.
The Bureau of Indian Standards (BIS) should call a meeting of printer manufacturers including representatives of foreign companies to minimise types of ink cartridges. The largest selling foreign company Hewlett-Packard (HP) has too many types of ink cartridges of similar shape and size for their vast range of inkjet and laser printers. Such standardisation will heavily reduce the cost of ink cartridges. The condition should be that such accessories may be allowed to be manufactured by Indian manufacturers. Standardisation of mobile chargers on lines of electrical plugs and sockets should also be done for mobile phones of all makes and companies.
The Union government should also induce standardization of common accessories like tyres and batteries so that the same parts may be used in different models of cars produced by various car manufacturers. It will heavily bring down the cost of consumables through their bumper production in extra large numbers in some limited sizes and specifications. It can be achieved by merging some nearing sizes and specifications. Such guidelines, though also mentioned in the auto-policy of the Union government, are never followed in actual practice. There may be just two variants apart from the third with automatic gears, one basic Lx for economy customers and the other Vx with all company-fitted extra accessories and luxuries for affording customers.
Presently there is no limit to the allowed total profit margin on a commodity between the Maximum-Retail-Price (MRP) and Ex-factory price of commodities allowing huge total trade margins. Even economically priced generic medicines have printed MRP which is ten times higher than their wholesale price. Such big trade margins induce corruption in purchases. Moreover, victims are normal consumers, especially in rural areas, who do not have access to and knowledge of wholesale markets. The Department of Consumer Affairs must fix the maximum total trade margin for any commodity to bring down the MRP of commodities.
Even renowned confectioners having daily sales in lakhs of rupees, do not issue bills resulting in big losses to the exchequer. Confectioners should be directed to compulsorily stick a copy of the GST invoice on each box of unbranded sweets sold in loose. GST authorities should be advised to have a common GST rate of say 12 per cent on all food items presently luxury sweets attract a GST rate of just 5 per cent while salted items attract 12 per cent GST giving liberty to confectioners often selling both items to show more sale of sweets to save GST under composite-scheme. Such can be the case with other unbranded commodities taxable under GST sold loose. Fear psychology should be developed whereby traders may themselves voluntarily issue GST invoices to customers even without being asked for.
The National Anti-Profiteering Authority (NAPP) working under the Department of Revenue should be shifted to the Department of Consumer Affairs. There is no provision for entertaining suggestions coming from experts either by NAPP or by other authorities. There must be some authority that may have the power to study and implement suggestions (if feasible).
A consumer forum in Chandigarh once imposed a fine of rupees 9000 on a renowned shoe company for charging rupees 3 as the cost of paper-bags. But the same shoe company and many famous branded shopping malls, are still charging the cost of paper bags from the shoppers. The Department of Consumer Affairs should prohibit by law the “selling” of shopping bags just for packing goods.
(The writer is an RTI consultant holding the Guinness World record, views are personal)
