Good News! More Power To You As A Consumer
Oct 05, 2017

Author: PersonalFN Content & Research Team

Advertising is meant to grab your attention.

So, a hyperbole in claims is understandable.

But exaggerated claims shouldn’t be misleading, right?

Many Indians still have an inferiority complex for being dark-skinned. Multi-national companies know this. So, they make and promote products that claim to make people fair and handsome in weeks. Instead of trying to get them out of the cocoon of inferiority such claims support them. It’s actually a good way to fool the consumer.

Why blame only personal care companies?

Some yogi babas turned Lalas (traders) are trying to milk the holy cow as much as they can. Isn’t it bizarre to promote floor cleaner containing cow urine?

To connect emotionally with their potential customers, branding and advertisements, at time, cross the limits.

Food supplements are another grey area. The claim of “nutrition” is as artificial as the preservatives they use.

And what are the consequences?

Buyers fall prey to tall claims of brands and endorsements and buy products and subscribed to services with high hopes. When they feel cheated because of the inferiority of the products, there isn’t a strong redressal authority, and big companies often walk away scot-free.

Adulteration and product duplication have sprung up in a big way with the emergence of e-commerce.

While the consumers are turning modern and digital, the laws meant to protect them are three decades old—inadequate and outdated.

Mr Bejon Misra, a consumer policy expert and founder, Consumer Online Foundation voiced his discomfort about the consumer protection laws currently in pace. He said, "The three-decade-old Consumer Protection Act in its present form is an inefficient piece of legislation not keeping pace with the new market dynamics, multi-layered delivery chains, innovative and many times misleading advertising and marketing machinery."

Thousands of consumer protection activists share his views.

It seems the Government has taken a note of this.

Recently, the Consumer Affairs Ministry has sent the Consumer Protection Bill, 2017 to the Cabinet for the approval. Once the new rules come into effect, the accountability of manufacturers, marketers, and advertiser would go up significantly.

What’s going to change?

Consumer Protection Authority is proposed to be established—an Indian equivalent of US Federal Trade Commission (FTC). The Commissioner of the office would have authority to initiate inquiries to protect consumer rights and prosecute the matter in an appropriate court. Consumer Dispute Redressal Commissions will be established at a district, state, and national levels.

The industry has cautiously welcomed these developments.

"We believe that the consumer is the most important stakeholder in the supply chain and bringing higher value to the consumer is sine quo non for survival in a competitive business environment... It is, therefore, important that such consumer protection laws are within the constitutional framework while providing effective, quick and realistic remedies to the consumers," said Mr A. Didar Singh, Secretary General, FICCI (Federation of Indian Chambers of Commerce and Industry)

The Bill has following revolutionary provisions

  • At least 7 years of jail which can be extended upto life term imprisonment for “storing, selling, distributing, importing products containing adulterant, or spurious goods”;
  • Minimum fine of Rs 10 lakh;
  • If a defective product causes any harm to the consumer, he/she will be entitled to the compensation from the manufacturer;
  • Fine upto Rs 50 lakh and a 3-year ban in making appearance in advertisements for endorsing a product making unrealistic or false claims;
  • If any product is found sold defective and causes harm to the consumer, the manufacturer will face the music— “even if he proves that he was not negligent or fraudulent in making the express warranty of a product";
  • Imprisoment up to life term and not less than seven years and with not less than Rs 10 lakh for manufacturing for sale, storing, selling, distributing, importing products containing adulterant or spurious goods;
  • If manufacturers and sellers fail to comply with the guidelines of the authority, they will further have to pay a fine upto Rs 20 lakh and minimum imprisonment of 6 months; and
  • The service providers will be punished for "conscious withholding of any information” which can cause harm to the consumers.
     

The Government aims to get this Bill cleared in the winter session of the parliament.
 



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