Special issue with the Sunday Magazine
From the publishers of THE HINDU

CONSUMER : October 31, 1999

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Milestones of the consumer movement

Srinivasa Narayanaswamy

The author is Chairman of the Federation of Consumer Organisations, Tamil Nadu.

Since Independence, India has been struggling to develop and strengthen its industrial base. However, during this period the Indian consumer has borne incredible hardships and has been subjected to exploitation of every kind in the name of self-sufficiency. Passive by nature, most Indian consumers have had to put up with adulterated food, faulty weights, under measures, spurious and hazardous drugs, exorbitant prices, endemic shortages leading to black marketing and profiteering, substandard products, useless guarantees, callous and indifferent services from public utilities and a host of other ills.

In the mid-Sixties however, the worm began to turn and the consumers began to organise themselves. They started voicing their concerns and demanding better products and services and fighting for their rights.

The consumer movement historically began in the early part of this century with the formation of the Passengers and Traffic Relief Association and the Women Graduates Union, Bombay, during 1915. But its real beginning in terms of sustained, visible and continuing expansion was during the Sixties.

The Consumer Guidance Society of India (CGSI), All India Bank Depositors Association; Bombay Civil Trust, Bombay; Surat Consumer Association, Surat; Jyoti Sangh Grahak Suraksha Vibag, Ahmedabad were all set up in the Sixties.

During the Sixties there were two major developments at the International level. President John F. Kennedy of the U.S. dedicated his administration to the promotion and protection of consumers' interests, helping the consumers realise their four fundamental rights; i.e. rights to safety, information, choice and redressal. He made this public commitment on March 15, 1962, the day now observed as "World Consumer Rights Day." The International Organisation of Consumers Union (IOCU) was also set up during 1960. Initially its headquarters was in The Hague, Netherlands. Later on it came to be known as Consumer International (CI) and its headquarters shifted to London. The World Consumer Congress meets every three years, and members share their experience and learn from one another. The last one was held at Santiago, Chile. The next one is scheduled for 2000. The Fair Trade Practice Association, set up by leading Indian business houses is presently known as the Council for Fair Business Practices and was set up in Bombay around 1965. Subsequently during each of the decades a few more consumer groups came up in different parts of the country, more particularly Karnataka, Andhra Pradesh, Tamil Nadu, Gujarat, Rajasthan, and Delhi.

During 1969, the Monopolies and Restrictive Trade Practices Commission was set up under the MRTP Act of 1969. The Commission has powers to grant interim relief. In the absence of other quick and inexpensive remedies available to consumers, the MRTP Commission fills the void. Cases of restrictive trade practices which adversely affect competition and those of unfair trade practices largely arising out of false and misleading advertising are taken to this Commission.

Till the mid Seventies, consumer organisations were largely engaged in activities of consumer protection by writing articles and holding exhibitions. To a marginal extent they were also engaged in making representations to the Government for changes in policies and laws. One noticeable exception was Mrinal Gore of Bombay who believed in direct action such as processions, demonstrations and picketing. She is remembered as "Paniwali Bai."

Another organisation which cropped up in the national scene during the Seventies was the Akhil Bharathiya Grahak Panchayat at Poona. Its thrust was collective wholesale buying of domestic needs and redistribution among consumer families thereby eliminating middle men and their margins. They also pursued direct action in terms of boycotts and picketing. This is now carried on by the Mumbai Grahak Panchayat, Mumbai.

Manoj k Jain

In 1974 some elitists in Tiruchi, Tamil Nadu, got together, formed a consumer group and started working on malpractices in ration shops and overcrowding in road passenger transport etc. Prior to this R. R. Dalavai, a freedom fighter and a Gandhian, started working on consumer protection in and around Chennai through consumer cooperatives.

Another major change that took place was the emergence of the Consumer Education and Research Centre (CERC), Ahmedabad. It gave a new thrust and turn to the movement.

The Eighties witnessed an upsurge in the number of consumer groups coming up across the country; there are now 1,500 consumer groups. This number should not give the wrong message that the movement is strong and effective.

A disturbing factor with a good number of consumers groups is gross inadequacy of financial resources. Half of them have an annual income and expenditure of Rs. 10,000/- or less and about 20 per cent have Rs. 25,000/- or less. Further, most of them are concentrated in urban and semi-urban centres and the movement is yet to pick up in rural areas.

During 1983, the Consumer Unity and Trust Society (CUTS) began out of a rural newspaper Gram Gadar (Village Revolution) in Rajasthan. Today CUTS is one of the leading VCOs in the country specialising in economic, trade and industry matters besides rural activities.

A major breakthrough came during 1986 when Parliament, under the leadership of then Prime Minister Rajiv Gandhi passed a law for Consumer Protection (COPRA - 1986). It is only in India that we have three tier consumer courts at district, State and national levels with different levels of pecuniary jurisdiction. The orders of these courts are compensatory and not punitive. The procedure is simple, speedy in redressal and inexpensive. VCOs have a locus standii in these courts and no court fee is charged.

Another milestone during the early Nineties was the development of synergy by and among the VCOs by the formation of State level and nation level federations. It began with Tamil Nadu in 1990 and was followed by States like Gujarat, Orissa, Andhra Pradesh and West Bengal. FEDCOT (Federation of Consumer Organisations - Tamil Nadu and Pondicherry) is noteworthy among the State Level Federations of VCOs.

Frederich Naumann Stiffung, a German Foundation in Delhi took the initiative to suggest VCOs in India to form a consumer coordination council at the national level as a countervailing force against lobbying and advocacy efforts by trade, industry and the professions. Today, CCC, New Delhi, is a National Coalition of VCOs in the country.

During the Janata Party rule between 1977 and 1980, under Mohan Dharia and during the days of A. K. Antony as the Minister for Consumer Affairs, the movement received a boost. More and more consumers individually and collectively have begun to assert their rights and pursue remedies to the logical end.

Some of the recent innovations in the consumer movement are the formation and adoption of citizens charters largely by the State services and the setting up of regulatory authorities for public utilities.

The one living individual who deserves special mention in the field of consumer protection is H. D. Shourie, Director, "Common Cause," New Delhi, who was conferred with the "Padma Bushan" Award by the Government of India for his relentless crusade for common cause even in his 80s.