Consumer Guidance Society of India
Mrs. Asha Idnani (Chairperson of CGSI)
Mr. Surendra Kanstiya (Company Secy, Lawyer)
To start with, Mrs. Idnani introduced us to the Consumer Guidance Society of India (CGSI) and explained us how does it work to help the consumers make use of their rights to curb their exploitation by the business world.
She told us, the Consumer Movement in India started in 1966. It was the result of faulty trade practices by traders in all forms of consumer goods. There was malnutrition and rising prices, which ignited the consumers to go against the sellers.
And finally the consumers were fortunate enough to have the Consumer Guidance Society Of India founded in 1966 itself. It set the aim of making consumers aware of their rights and responsibilities.
The CGSI surveyed large no. of consumers. Its members interacted
with the people asking them all kinds of grievances they had regarding the products they
use. It also got to product testing at a large scale to assure the quality of many
products.
Mr. Surendra accepting a token of appreciation from a
student.
In 1977, CGSI extended its periphery to safety and performance of household products. It assessed a whole lot of products ranging from electrical appliances to food products. Not surprisingly, 2/3rd of the products failed to come up to the standards.
It was finally in 1986 that the Govt. Of India recognized the grief of the consumers. It passed the Consumer Protection Act of 1986. This helped CGSI in providing better protection of the interest of consumers and establishing consumer councils and other forms for the settlement of consumer disputes.
CGSI formed various committees such as Education Committee, which made the consumers like housewives aware of their rights. It provided video films to let people know what they can do as consumers. They were enlightened on consumerism. The Testing Committee on the other hand took up the job checking the quality of the products supplied in the market. The Complaint Committee had to consider the grievances of the consumers and respond to them. It appeared that 75% of the complaints lodged were settled by mutual discussion among the consumers and the members. Lastly, there was the Legal Aid Committee, which helped the consumers to go legal through the C.P.A of 1986.
In this way the CGSI resorted to help Indian consumers and not get exploited by the business community.
Mrs. Idnani also told us that CGSI does not accept advertisements, donations and gifts. Its main source of funds is membership. And she was sad to tell us that it has just enlisted 1900 members in the past 15 years.
Mr. Kanstiya then took over asking us what comes to our mind by just "CONSUMER PROTECTION". He was glad to hear words like rights, value for money, safety, education etc.
He then emphasized on the fact that we future managers need to know ‘Man Management’ and that is what they do at CGSI.
Mr. Kanstiya directly went on to describe to us the different rights that an Indian has as a consumer. They included
 | Safety |
| Information |
| Choice |
| Be heard |
| Education |
| Healthy |
| Environment |
| Basic Needs |
Responsibilities of a consumer followed. They covered
| Awareness |
| Action |
| Social Responsibility |
| Ecological Responsibility |
| Solidarity |
The Consumer Protection Act of 1986 is a unique piece of legislation.
| No stamp duty |
| Speedy Redressal (within 90 days) |
| Application on a simple piece of paper |
| Simple Language |
| Economical |
M.R.T.P Act (Monopoly and Restrictive Trade Practice Act)
- C.G.
- MRTP Commission
- D.G.I.R.
It allows the consumers to lodge complaints for
| Defective goods |
| Deficient services |
| Excess price |
| Hazardous goods |
| UTP / RTP |
Relief
| Removal of defects |
| Replacement of goods |
| Refund of price |
| Compensation for loss / injury |
| Discontinuance of UTP / RTP |
| Ban of hazardous goods Cost |
For filing complaint against a company documentary evidence is required. The consumers are required to write letters to the company concerned.
Complaints under M.R.T.P. Act can be lodged by
| A Consumer |
| A registered consumer organization |
| Central / State Govt. |
| Class Action: On behalf of all people a single complaint can be filed. |
No relief
| Free goods and services |
| Resale / commercial purpose |
| Contract of personal service (master – servant) |
Redressal Agencies
| District Forum (600 districts) – 5 Lac |
| State Commission - 5-20 Lac |
| National Commission - 20 + |
| Supreme Court – appeals |
Limitations
| Complaint – 24 months |
| Appeal – 30 days: from the receipt of judgement. |
If the consumer is not satisfied with the judgement given by the District Forum, he can go to State Commission, National Commission and finally to the Supreme Court.
Jurisdiction
| O.P. resides (opp party) |
| Carries business |
| Action arose |
Penalty if relief is not given:
| Imprisonment: 1month to 3 years |
| Fine: RS 2,000 to 10,000/- |
Frivolous / Vexatious Complaint
For e.g. A file against a doctor could be wrong i.e. the doctor has prescribed the right treatment but the patient has not followed the instructions properly.
| Fine upto RS. 10,000/- |
Constitution of Redressal agencies
| From Judiciary |
| Persons with Adequate Knowledge ( Expert in any field of study) |
Tie Up Sales
| Superior Product + Inferior Product (forced to buy two products at a time) |
| Locker + FD |
| Gas connection + stove |
| Washing powder + washing soap |
UTP
| Misleading advertisements, false representations about standard, quality, grade, style, composition, model of goods, services, sponsorship, approach, performance, benefits. |
| Bargain sale: no intention to sell at offered price / quantity / period. |
| Gift scheme / promotional contests: No intention to give gift rather increase price. |
| Violation of prescribed standard: hoarding / destruction of goods / create shortages. |
As we see in the following examples:
| Maggi tomato ketchup in 400 GMS bottles giving impression of 500 GMS bottles. |
| ‘Made for eachother’ Wills contest: one of the two should be a smoker. |
| Computer for RS. 20,000/- inclusive of duty and taxes (accessories charges extra) |
Mr. Kanstiya explained us all the above points and said that it was just the tip of the iceberg that we have seen.
We then had both Mrs. Idnani and Mr. Kanstiya answering our queries regarding the topic.
As Mrs. Idnani did not like to accept any personal gift from us, we mutually collected a small sum and forwarded it to her as a mark of donation from our college to The Consumer Guidance Society of India.
- Reporters:Rupal Srivastava & Ian Aranjo