Sustainable Consumption and Consumer Protection (SCCP)
The objective of programmes and activities under this thrust area is to strengthen consumer protection institutions at the local level and contribute to improving the institutional and legal framework at the national level. The operational steps include:
- Setting up a system of consumer counselling centres in selected administrative districts, with trained counsellors and centrally managed content
- Advisory and training services to the Ministry of Consumer Affairs (MoCA) to improve the legal and institutional framework of consumer protection, decentralise the system and emphasise preventive aspects of consumer information and guidance
- Comparative product testing and publicising the result through efficient communication and public information campaigns, to increase the demand for environmental friendly products
- The system of Consumer Courts in the three States of Rajasthan, Gujarat and Andhra Pradesh is supported in order to introduce faster procedure and to respond better to increasing number of cases.
- The system of legal metrology in India is supported by building model laboratories at National, State and District level. Special Verification Agents are being introduced into the system to cary the spirit of Public Private Partnership. This is being done after appropriate amendments in the existing laws
Background
The Indian consumers are a huge market on account of the sheer size of the population of the country. They are very heterogeneous. There are wide gaps in literacy and income levels, quality and pricing of goods and services as well as their availability. Large retail chains have a market share of less than 3 %. The remaining small and smallest retailers depend on a complex and multi-tiered system of intermediaries which all take their margin before a product reaches the consumer. The lack of organization of retailers and their dependence on intermediaries lead to high prices for consumers, often added by unfair trade practices and low quality of products and services especially in rural areas. Consumers are often not aware of their rights and means for legal redress. Although consumer courts exist their proceedings can be cumbersome and time consuming. Despite the existence of legislation, its implementation is still not effective and redressal is not within the reach of the vulnerable, poor and marginal consumers. The more than one billion consumers in India also have a decisive role to play in the efforts to mitigate the effects of climate change and the negative impact of production and consumption on the environment.
The Project
In the light of this background, the Department of Consumer Affairs, Ministry of Consumer Affairs, Food and Public Distribution, Government of India, has joined hands with GTZ, the German enterprise for international technical cooperation, to streamline the system of consumer protection in India under the project “Consumer Protection and Sustainable Consumption in India”. During the first phase of the project the situation and problems of consumers in India were analyzed extensively by international and national experts. A profile of different target groups according to education and income was made and consumption habits analyzed. Workshops were held including all stakeholders involved to discuss about instruments like comparative testing, alternative dispute resolution and the strengthening of Voluntary Consumer Organizations (VCOs). All this has resulted in a number of recommendations how to improve the legal and institutional framework for consumer protection in India. In addition the awareness of consumers about their rights and possibilities was raised especially in rural areas by producing TV spots which contributed to the successful “Jago Grahak Jago” campaign of the Ministry (“Wake up consumer wake up”). The second phase will concentrate on pilot projects in the areas of advice and redress to test models which can be replicated in other areas and ultimately across the country. The implementation of recommendations made during the first phase will also be an important focus.
Objective
The objective of the project is to provide best-international practices tailored to the special needs of consumers in India to empower the demand side of the market. By improving the structures for consumer advice, comparative testing and legal redress consumers will increasingly be able to make informed purchase decisions, As the quality of products and services and good business practices become more transparent and consumers are enabled to make informed purchase decisions, manufacturers and suppliers in India will increasingly be pushed towards following international quality and safety standards. This again will improve India’s competitiveness in the international market and its export opportunities. At the same time this will help to reduce the number of unsafe, unhealthy and contaminated products especially in rural areas and thus improve the quality of living especially for the underprivileged citizens.
Main working areas:
The project has and will focus especially on the following areas:
- Improve the system of consumer information and market transparency
- Increase awareness about energy efficiency and environment friendly products
- Support DoCA in improving the institutional framework for consumer protection
- Enhance rules on unfair trade practices and their enforcement
- Improve the system of legal redress for consumers
- Support DoCA in the field of Legal Metrology
Regional Focus
For the second phase of the project starting in April 2009 five states have been selected for pilot projects:
- Gujarat
- Madhya Pradesh
- Orissa
- Tamil Nadu
- West Bengal
Timeline
The duration of the project is 6 years which is divided into two phases:
First phase: 2007-2008
Second phase: 2009-2012The second phase has been started from April 2009.
Contact:
Mr. Patrick von Braunmühl, International Senior Advisor: patrick.vonbraunmuehl@asemindia.com
Mr. P.A. Krishnamoorthy, Indian Project Manager: krishnamoorthy@asemindia.com
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