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Consumer Protection Post Globalised Era

The document discusses the evolution and challenges of consumer protection in India within the context of post-globalisation, highlighting the impact of economic liberalization since the 1990s. It outlines the historical roots of consumer rights in India, the enactment of the Consumer Protection Act of 1986, and the subsequent amendments in 2019 aimed at addressing contemporary issues like e-commerce. The document emphasizes the need for improved consumer awareness, stronger legal frameworks, and effective enforcement to protect consumers in an increasingly complex market.

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74 views5 pages

Consumer Protection Post Globalised Era

The document discusses the evolution and challenges of consumer protection in India within the context of post-globalisation, highlighting the impact of economic liberalization since the 1990s. It outlines the historical roots of consumer rights in India, the enactment of the Consumer Protection Act of 1986, and the subsequent amendments in 2019 aimed at addressing contemporary issues like e-commerce. The document emphasizes the need for improved consumer awareness, stronger legal frameworks, and effective enforcement to protect consumers in an increasingly complex market.

Uploaded by

Avneet
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Consumer Protection in the Post-Globalised Era: A Detailed Note with Reference to India

Introduction

The post-globalised era has ushered in unprecedented changes in trade, commerce, and
consumer markets worldwide. Globalisation, characterized by the liberalization of
economies, expansion of multinational corporations (MNCs), technological advancements,
and digital connectivity, has transformed consumer behavior and market dynamics. While
globalisation has expanded consumer choices and improved product availability, it has also
introduced new challenges in protecting consumer rights.
Consumer protection, therefore, remains a critical issue, especially in developing countries
like India, where economic liberalization since the 1990s has integrated the domestic
market with global trade. This note explores the evolution, challenges, and current status of
consumer protection in the post-globalised era, with a special focus on India, drawing
extensively from the attached document "Globalisation and Consumer Rights Protection"
(Chapter 5).

1. The Concept of Consumer Protection in the Globalised Era

1.1. Consumer Rights and Globalisation


Consumers purchase goods and services to derive utility, and their rights must be
safeguarded to ensure fair trade practices, product safety, and access to information.
Globalisation has expanded market boundaries, enabling consumers to access a variety of
products from different countries. However, this has also increased the complexity of
consumer protection due to:

• Cross-border transactions
• Diverse regulatory frameworks
• The rise of e-commerce and digital goods
• Increased presence of MNCs with varying standards

The attached document highlights that in developed countries, consumer protection laws
are stringent and well-enforced. In contrast, some developing economies have historically
deprioritized consumer protection to attract foreign investment, often at the cost of
consumer welfare.

1.2. The Role of International Organizations


International financial organizations such as the World Bank, International Monetary Fund
(IMF), and World Trade Organization (WTO) have traditionally focused on trade
liberalization and economic growth, often sidelining consumer protection legislation in
developing countries. However, the global proliferation of research and development
(R&D), outsourcing, and the internet has created a global market demanding higher
standards of consumer protection for quality assurance and safety.

2. Historical Background of Consumer Protection in India

2.1. Ancient Roots of Consumer Protection


Consumer protection is not a modern concept in India. The Arthashastra by Kautilya, an
ancient Indian treatise, discussed corruption and malpractices by traders, emphasizing the
need to protect consumers from exploitation. This historical perspective shows that
consumer rights have long been a concern in Indian society.

2.2. Modern Consumer Protection Movement


The modern consumer protection movement in India gained momentum post-
independence, inspired by global developments such as the US Consumer Bill of Rights
introduced on March 15, 1962, by President John F. Kennedy. Kennedy identified four basic
consumer rights:

• Right to Safety
• Right to Choose
• Right to Information
• Right to be Heard

Later additions by President Gerald Ford and Consumers International expanded these
rights to include consumer education, representation, redress, and a healthy environment.

2.3. The Consumer Protection Act, 1986


India enacted the Consumer Protection Act (COPRA) in 1986, which recognized six
fundamental consumer rights: safety, information, choice, representation, redress, and
consumer education. The Act aimed to provide speedy and inexpensive redressal of
consumer grievances through a three-tier quasi-judicial system:

• District Consumer Forums


• State Consumer Disputes Redressal Commissions
• National Consumer Disputes Redressal Commission
3. Consumer Protection in India in the Post-Globalised Era

3.1. Impact of Liberalization and Globalisation


Since the 1990s, India’s economic liberalization has opened its markets to foreign direct
investment (FDI) and multinational corporations. This has increased product variety and
consumer choices but also exposed consumers to new risks such as:

• Substandard imported goods


• Complex contractual terms in services
• Digital fraud and cybercrime
• Lack of awareness about consumer rights in rural areas

The document points out that consumer sovereignty is vital for economic growth, as
consumption drives demand and production. However, the protection of consumers in
India has not kept pace with the rapid market expansion.

3.2. Challenges in Consumer Protection Enforcement


Despite the enactment of COPRA, several challenges persist:

• Limited Reach in Rural Areas: The Act’s benefits are mostly availed by urban,
educated consumers. Rural consumers remain largely unaware and unprotected.
• Judicial Delays and Backlogs: Data from West Bengal (2002-2013) shows a high
pendency of consumer cases, indicating slow judicial processes and inefficiencies in
consumer forums.
• Inadequate Implementation: There is a lack of effective monitoring by State
Consumer Protection Councils and District Consumer Protection Councils.
• Corruption and Lack of Support: Consumers often face corruption within forums,
and there is insufficient assistance for consumers to file and defend complaints.
• Low Compensation and Lenient Punishments: Compensation awarded is often
minimal, reducing the deterrent effect on exploitative traders and service providers.

3.3. Consumer Awareness and Education


Consumer education remains a critical gap. The document stresses that without active
consumer participation and awareness, legislative measures alone cannot ensure
protection. Consumer organizations and movements are weak, especially in states like
West Bengal, limiting their ability to advocate for consumer rights effectively.
4. Recent Developments and Reforms

4.1. Amendments to the Consumer Protection Act


Recognizing the limitations of the 1986 Act, India introduced the Consumer Protection Act,
2019, which aims to address contemporary challenges by:

• Establishing the Central Consumer Protection Authority (CCPA) for better


enforcement
• Introducing provisions for e-commerce and online consumer protection
• Enhancing penalties for unfair trade practices
• Simplifying dispute resolution with provisions for mediation

4.2. Digital Era Consumer Protection


The rise of e-commerce platforms and digital transactions necessitates new consumer
protection frameworks. The 2019 Act includes specific provisions for digital consumers,
addressing issues like data privacy, misleading advertisements, and online fraud.

4.3. Role of Civil Society and NGOs


Consumer rights organizations, NGOs, and media play a vital role in raising awareness and
pressuring authorities for better enforcement. However, their reach and impact remain
limited in many parts of India.

5. Globalisation and Consumer Protection: Comparative Insights

5.1. Developed vs Developing Countries


Developed countries have institutionalized consumer protection with robust legal
frameworks, active consumer organizations, and efficient redressal mechanisms.
Developing countries, including India, face challenges such as:

• Balancing liberalization with consumer protection


• Attracting foreign investment without compromising consumer rights
• Building institutional capacity for enforcement

5.2. International Consumer Rights Movement


The global consumer rights movement, led by organizations like Consumers International,
promotes a universal charter of consumer rights, including environmental protection and
consumer education. India aligns with this movement by observing World Consumer
Rights Day on March 15 every year.
6. Recommendations for Strengthening Consumer Protection in India

Based on the analysis and data from the attached document, the following
recommendations are proposed:

6.1. Strengthening Legal and Institutional Framework

• Enhance the capacity and efficiency of consumer forums to reduce case backlogs.
• Empower State and District Consumer Protection Councils to actively monitor and
support consumer rights.
• Impose stricter penalties and ensure timely enforcement of judgments.

6.2. Promoting Consumer Awareness and Education

• Launch widespread consumer education campaigns, especially targeting rural and


semi-urban areas.
• Encourage active participation of consumers in market monitoring and advocacy.

6.3. Addressing Corruption and Administrative Issues

• Implement transparent processes within consumer forums.


• Provide free legal aid and assistance to consumers filing complaints.
• Regularly train forum staff and judges on consumer jurisprudence and
contemporary issues.

6.4. Adapting to New Market Realities

• Update laws to address digital commerce, data privacy, and cross-border consumer
issues.
• Foster collaboration between government, industry, and consumer groups for
responsible business practices.

Conclusion

Consumer protection in the post-globalised era is a complex but vital aspect of ensuring
fair and sustainable economic growth. While globalisation has expanded consumer choices
and market opportunities, it has also introduced new risks and challenges that require
robust legal frameworks, effective enforcement, and active consumer participation.

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