The tide of “consumerism” has swept the globe and has given birth to a new generation of consumer with four basic rights of choice, information, safety and redressal. With a steep increase in the disposable income, especially with the middle class, ‘impulse’ buy is catching-up over the ‘need’ buy. Fuelling this trend are the seasonal discounts, promotional schemes and attractive POP (Point of Purchase) displays or mannequins.
However, at the same time consumers today are not willing to compromise their rights as a consumer, showing concern over the honesty of advertising and the quality of consumer goods.
Birth of “consumerism”The ideology of consumerism gained ground in 1950's and began to push for increased rights and legal protection against malicious business practices. However, it was brought into focus in 1962 when President John F. Kennedy introduced the Consumer Bill of Rights to the United States Congress, stating that the consuming public has a right to be safe, to be informed, to choose, and to be heard. Subsequently, March 15 every year is celebrated as World Consumer Rights Day. Fuel was added to the fire in 1966 with the publication of Ralph Nader's book Unsafe at Any Speed, which attacked portions of the automotive industry. When corruption of government officials in the Watergate scandal of the 1970s, coupled with widespread consumer dissatisfaction with the quality of products and inflation were combined with the greater sophistication brought about by consumer advocates, consumerism became a powerful, action-oriented movement in the USA.
U.N. guidelines for consumer rights
In response to protect the rights of consumers as articulated by President Kennedy three decades ago, the General Assembly of United Nations 1985 adopted the following guideline:
(a) To assist countries in achieving or maintaining adequate protection for their population as consumers;
(b) To facilitate production and distribution patterns responsive to the needs and desires of consumers;
(c) To encourage high levels of ethical conduct for those engaged in the production and distribution of goods and services to consumers;
(d) To assist countries in curbing abusive business practices by all enterprises at the national and international levels which adversely affect consumers;
(e) To facilitate the development of independent consumer groups;
(f) To further international cooperation in the field of consumer protection;
(g) To encourage the development of market conditions which provide consumers with greater choice at lower prices.
Consumer rights in IndiaThe resonance of the U.N. declaration on consumer rights was also felt in India and to ensure consumer welfare the Consumer Protection Act, 1986, was introduced. A separate Department of Consumer Affairs was created in the Central and State Governments to exclusively focus on ensuring the rights of consumers as enshrined in the Act. This Act has been regarded as the most progressive, comprehensive and unique piece of legislation. In the last international conference on consumer protection held in Malaysia in 1997, the Indian Consumer Protection Act was described as one "which has set in motion a revolution in the fields of consumer rights, the parallel of which has not been seen anywhere else in the world."
The special feature of this Act is to provide speedy and inexpensive redressal to the grievance of the consumer and provide him relief of a specific nature and award compensation wherever appropriate. The most important feature of the Act is the provision for setting up a three-tier quasi-judicial machinery popularly known as "consumer courts" at national, state and district levels. The apex court, National Commission functions in Delhi. Every State Government has a State Commission. The third tier is in each district and is called District Forum.
Factors responsible for rise in consumerismThe sudden spurt of the service industry and the rise in disposable income with the middle class has resulted in a paradigm shift from the “seller’s market” to the “buyer’s market”. This in turn has led to a sudden surge of consumerism. The producers, propelled by the competition in the market, try to differentiate their offerings by customizing them to the needs of the consumers.
The increasing penetration and use of the internet has also contributed significantly to the rise in consumerism. e-Marketing helps a consumer transcend beyond the boundaries of a physical market and be updated on the latest discounts, offers and trends.
Implementation of several consumer laws to protect the rights of the consumers against any unfair act, practice or bargain has also been a silent aide pushing consumerism.
The rise in consumerism in the society can also be correlated to the prevailing socio-economic factors. In general, consumers in the West are less willing to compromise on the quality of the product, and more aware and vociferous about their rights.
So, is consumer the king?It is interesting to note that inspite of U.N. recognition, encouragement from the developed countries and the pro-active role played by the Government, the consumer in India still does not get his due. Worse still, he doesn’t even ask for his due!
“In India, there is always a scope for dissatisfaction post-purchase, with no option of exchange or buy-back. So, if something doesn’t perform as promised, we blame it on luck!” exclaims Sancharita Chatterjee, a sales representative.
In India, for most people consumerism is only a feel-good factor, just like gender equality and secularism. Though it’s a subject of discussion at the public forums but when it translates into actually standing up for the rights as a consumer, there is a sudden resistance and withdrawal.
When asked why, Maria D’souza from Human Resource department explains, “There is an inexplicable hesitation and social stigma involved when it comes to dealing with lawyers and trial courts, even amongst the educated class”, she adds almost as an after-thought.
Raghvendra Mittal, a finance professional, believes, “There is a thin divide between demanding your right and creating a fuss over what wasn’t even guaranteed by the seller/producer. What makes me abstain from filing a lawsuit and getting involved with the legal procedures is the general perception of the procedure being lengthy and cumbersome, while the lawyers being manipulative and exploitative.” Everything said and done, the punishments doled out to companies in most consumer cases are often very minuscule, and don’t serve as a deterrent for them to improve their record or a disincentive not to indulge in such practices. “So, then we should really ask ourselves if it is worth,” exerts Harsh Vardhan, a businessman.
So, whereas enacting the legislations and regulations are definitely an encouraging step forward in consumer movement, but consumerism still remains only a feel good factor. These procedures need to be further simplified and implemented more stringently. On the other hand, the consumers need to be made aware of their rights, convinced about the ease of understanding these laws, the convenience of implementing them and the benefits of demanding them.
- Namrta Batra
