National ConclaveOct. 11-12, 2012 IHC, New Delhi

‘Indian Consumers in the New Age: A Forward Looking Agenda to Address the Concerns of the

Common People’ (ConsumersUp)

Key Findings of the Research

Project Back Ground• On completion of twenty five years of Consumer Protection Act

1986, there is need for compressive and forward looking Consumer Protection Policy to address emerging consumer issues.

•  For this CUTS is implementing a one year (Nov. 2011-Oct. 2012) Project named “ConsumerUP” in partnership with DoCA, GoI in four states of India.

• As part of the research component consumer survey has been conducted in 19 states and 3 union territories of India to understand the state of Indian consumers. CUTS assigned the task to a professional agency; Insight Development Consulting Group (IDCG) on competitive bidding basis.

• The focus of the survey was to assess the level of Knowledge, Awareness and Exercise of consumers regarding consumer rights motioned in UN guidelines: -

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Right to Basic Needs Right to Redressal

Right to Safety Right to Consumer Education

Right to be Informed Right to be Heard

Right to Choice Right to Healthy Environment

Project Approach

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Study on the State of the Indian Consumers

4 Regional Consultations

1 National Conclave

8 State level knowledge Enhancement workshops

Enabling environment for protection and promotion of

consumer interest contributing towards the national interest”

For more details, visit: http://www.cuts-international.org/CART/ConsumersUp/

Research Methodology & Coverage

• Surveyed 11,499 (53%Male & 47% Female) consumers following a Stratified Multi-Stage Sampling Approach in 88 districts, spread across 19 states and 3 union territories of India

• Population Proportionate Sampling (PPS) methodology was used to draw a sample representative of the state’s population.– Other factors taken into account in stratifying the sample include: 

• Geographical spread• Relative literacy rates of districts• Rural and urban divide• Categories of consumers in term of gender, education and financial status

• 385 qualitative samples collected through personal interactions with consumer organizations, redressal bodies, Govt. departments/agencies.

• Period of Data Collection- March- June 2012

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5

Survey Sample Distribution

Right to Basic Needs(Food, Water, Health, Sanitation, Education, Transport, Communication and energy)

• 31% respondents believe that the water from these sources is not potable, hence not safe for drinking

• Only 24% respondents are aware about government Sanitation Program/schemes.

• 77% consumers feel the need of a regulator for private schools.

• Only 4% consumers have access to internet. • About 74% of the respondents who tried to access govt.

housing finance or bank finance scheme believe that finance is not easily accessible and affordable

• Only 44% respondents have reported to receive appropriate quantity of food grains from PDS/FPS on a regular basis.

• According to 59% respondents doctors do not generally prescribe generic or competitively priced drugs/medicines.

• 26% respondents have travelled more than 5 km to access institutional health care facility.

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7

Right to Basic Needs

• Only 44% respondents consider cost of obtaining healthcare services affordable

• 17% believe that government support for home/community toilet is easily accessible.

• Only 62% consumers consider electricity to be affordable. • About 56% of those who use LPG or kerosene as their primary

source of energy for cooking have reported incidence of obtaining LPG/kerosene from black market. About 20% of them always obtain LPG or Kerosene from black market.

• Only 22% respondents are satisfied with Government’s effort to ensure adequacy, accessibility and affordability of basic needs.

• 53% respondents strongly believe that right to basic needs should be enacted as a legal right.

•

Right to Safety

• Though about 83% respondents believe that certification and warnings are an important means to ensure right to safety.

• But 40% of respondents do not refer to any safety or quality certifications such as ISI, ISO, Agmark, Codex etc. before making a purchase.– ISI is the most known certification– Consumers suggested to make mandatory

certification of Acid, Paints, Mosquito Coils, Beverages and Electronic Items.

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Right to be Informed

9

Awareness Regarding Consumer Protection Related Laws (%)

10

CPA1986

W&

M 1

976

SoG 1

930

Contr

act A

ct 1

872

Compe

titio

n 20

02

FSSA 200

6

PSG 201

1

LM 2

009

28

19

15

1113

18

14

9

16

12

8

4 5

86

4

Awareness Level of Different Legis-lations

Aware Urban Aware Rural

11

CPA1986

W&

M 1

976

SoG 1

930

Contr

act A

ct 1

872

Compe

titio

n 20

02

FSSA 200

6

PSG 201

1

LM 2

009

22

16

12

8 9

13

96

17

12

9

57

10

8

5

Awareness Level of Different Legislations

Aware MaleAware Female

Right to be Informed

12

Awareness Regarding Regulatory Agencies

ERC TRAI FSSAI SEBI IRDA RBI PFRDA FMC

0

5

10

15

20

25

30

35

40

26 27

16 1624

40

25

8

13ERC TRAI FSSAI SEBI IRDA RBI PFRDA FMC

39 38

23

2832

51

30

14

1922

12 11

20

34

22

4

Awareness Level of Regulatory Authorities

Urban Rural

14

ERC TRAI FSSAI SEBI IRDA RBI PFRDA FMC

2830

18 19

27

44

26

8

2325

14 13

22

3533

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Awareness level of Regulatory Authorities

Aware Male Aware Female

Right to Choice

• Only few consumers are of aware about competition issues and their importance to protect interests of consumers.

• only 1.6% respondents were able to correctly name at least one product/service which has only one or two producers/providers.

• Apart from availability, cost of alternatives, transaction fee, documentation are the main barriers before consumers in choosing alternative service/products.

• Consumers believe that there is need to promote more free & fair competition in Aviation, Education, Oil & Gas, Railway and Real –Estate.

15

Products/Services which Should Offer Portability

Bank Account Number

School/College Admission

Electricity

LPG Connection

Insurance

0 10 20 30 40 50 60 70

60

12

15

17

15

Right to Redressal

• 61% normally voice their complaints to seller, at first point• When it come to actual situation - 93% respondents have never made a

formal complaint • Only 0.3% respondents have approached consumer fora for grievance

redressal, • 78% have rated the grievance redressal process as “difficult”.

– 75% cases were not completely redressed while only 18% of such unresolved cases were taken to a higher authority for redressal.

– 67% cases were not redressed within stipulated time frame

• 0.1% people have approached sector ombudsman for redressal.• Only 18% consumers are fully satisfied with the existing redressal

mechanism• Only 28% of those who know about external redressal mechanism believe

that it is easily accessible by a common man• About 89% aggrieved consumers are represented through advocates in

SCDRC and DCDRC.

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Right to Redressal- Major reasons for delay

• According to SCDRC/DCDRF, the three major

reasons for delay in redressal are :– Adjournment Sought by Advocates/ Parties (27%)– Limited/Inadequate Administrative/ Support Staff (19%) – Educational Status of Complainant (11%)

• According to Consumer Organisations, the three major reasons for delay in redressal are:– Educational Status of Complainant (16%) – Inadequate Administrative/ Support Staff (14%) – Limited Number of Benches (13%)

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Right to Consumer Education

• Only 42% respondents have heard about consumer rights

• 78% of such respondents heard about consumer rights from television (TV) Almost 50% of respondents are aware of “Jago Grahak Jago Campaign”.

• 80% of such respondents learnt about the campaign from Television.

• Close to 50% of those who know about “Jago Grahak Jago” campaign have reported to benefit directly or indirectly from the campaign.

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Right to be Heard /Consumer Representation

• only 23% are aware about the process of public consultation or consumer representation.

• In rural area only 18% respondents are aware

• About 28% of those who are aware about public consultation or consumer representation have also participated

Lack of awareness among people

Lack of interest among people to participate

Date/time and Objective of public consultation are not properly communicated

Participation do not result in framing of consumer friendly regulations

0 10 20 30 40 50 60 70

64

25

6

5

Hurdles in ensuring effective consumer representation/ participation

Right to Healthy Environment

• Only 9% respondents are aware about certifications and initiatives.

• Awareness about such certifications is largely among residents of southern (18%) and northern (12%) region, while eastern region has lowest level of awareness (2.5%).

• About 28% respondents those who know about such products always tend to buy such products

• About 63% are willing to pay some extra money to buy such products

20

Awareness regarding environmental friendly certifications

Yes9%

No91%

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Ranking of target States/UTs in term of overall consumer awareness

BiharAndhra Pradesh

UttarakhandOdisha

RajasthanTamil Nadu

ChhattisgarhWest Bengal

Madhya PradeshUttar Pradesh

PuducherryJharkhand

TripuraDelhi

HaryanaGoa

Maharashtra Karnataka

KeralaGujaratPunjab

Chandigarh

0 5 10 15 20 25

Bihar; 22Andhra Pradesh; 21

Uttarakhand; 20Odisha; 19

Rajasthan; 18Tamil Nadu ; 17

Chhattisgarh; 16West Bengal; 15

Madhya Pradesh; 14

Uttar Pradesh; 13Puducherry; 12

Jharkhand; 11Tripura; 10

Delhi; 9Haryana; 8

Goa; 7Maharashtra ; 6

Karnataka; 5Kerala; 4

Gujarat; 3Punjab; 2

Chandigarh; 1

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ISSUES National Haryana Karnataka Tripura Jharkhand

People are using public distribution system (PDS) as preferred source for food grain. 14 5 18 57 17

Doesn’t know where to register complaint for PDS 19 52 8 67 12

Respondents are purchasing LPG/Kerosene from black market 20 14 23 29 12

Still wood is used as fuel in kitchens of respondent 46 45 19 30 35

Respondents meet their drinking water demand through public water supply 54 51 69 53 70

Only respondents having access to electricity above 20 hours supply on a normal day.Respondent’s Awareness level Electricity Regulatory Commission

3226

2518

3731

2633

1420

Respondents believe that access to education has increased due to Right to Education (RTE) 80 90 64 61 86

Instead of good, respondents have rated healthcare facility as “fair” 52 60 54 57 65

Accordingly respondents has respondent that generic medicines are not easily available 57 62 60 67 40

Respondents fully satisfied with government’s effort to ensure adequacy, accessibility and affordability of basic needs.

22 20 22 14 33

According to responses ISI is the most know certification whereas Agmark and Codex certifications are known to very few.

44 53 72 39 71

Always check weights/quantity of product before purchasingAlways check contents Mark of product before purchaseUnaware of Consumer protection Act

6329

775686

562439

7931 

694793

RBI is known to theTRAI is known to

4027

5032

4736

5413

4130

Respondent ever approached Consumer forums for grievance redressalRespondents not choosing any of Redressal Mechanism Unknown to choosing alternative product/services is the biggest barrier

2.69356

029241

038925

139236

0.39751

Respondents satisfied with the Present Grievance Redressal MechanismRespondents aware of internal redressal mechanism of a companyRespondents unaware of external redressal mechanism of a companyRespondents agrees, present Grievance Redressal Mechanism’s Ability to Compensate Aggrieved Consumer

27131413

14252725

39092018

36140611

55070606

Respondents aware of “Jago Grahak Jago”Awareness level of respondents on Consumer Rights

5141

8142

5962

6548

8169

Respondent’s aware about the public consultation Respondents Participation in Public Hearing/ Public ConsultationLack of awareness among people for not participating in such events

230664

231480

341739

060222

110335

People’s awareness regarding environmental friendly certificationsRespondents Always Purchase Environment Friendly ProductsWillingness to pay extra money for such products

092863

131656

394459

110973

2.15771

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Recommendations• There is need of a separate department for consumer affairs to

coordinate all consumer related affaires. • There is need to simplify & speed-up process of consumer fora. • There should mediation/consumer cells every in District Forum. • There is need of a National Authority to curb unfair trade

practices , mainly misleading advertisements. • There is a need of national campaign for consumer awareness

(like Jago Grahak Jago) in all regional languages. • There is need to creat more awareness about regulatory

agencies and their regulations for consumer protection. Every regulator should have dedicated fund for consumer protection.

• There is demand to maker Right to basic need a legal right.

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Recommendations• There is need of regulators for education, health and

real-estate sectors. • There should be more emphasis on consumer education in

school and college curriculum. • There is need to ensure access to affordable health

services/medicines, especially promotion of generic medicines.

• There is needs to promote sustainable consumption and production by providing incentives to green production & consumption.

• There is need to activate/empower consumer protection council at national/state/district level.

• There should be case management system in Consumer Fora for proper monitoring of disposal to ensure timely disposal.

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Thank You

Amarjeet Singh,Project Coordinator,CUTS International

D- 217, Bhaskar Marg, Bani Park, Jaipur 302 016, India

Ph: 91.141.5133259, 2282 823/2282 482Mob: 91. 9829015812Fax: 91.141. 4015395

Email: as7@cuts.org; consumersUp@cuts.org; Project Webpage: http://www.cuts-international.org/CART/ConsumersUp/