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 on the

state of Indian Consumers

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: -

2

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

3

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

4

Survey Sample Distribution

5

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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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.

7

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 1976 SoG 1930 Contract Act 1872

Competition 2002

FSSA 2006 PSG 2011 LM 2009

28

19

15

11

13

18

14

9

16

12

8

45

8

6

4

Awareness Level of Different Legislations Aware Urban Aware Rural

11

22

16

12

89

13

9

6

17

12

9

5

7

10

8

5

CPA1986 W&M 1976 SoG 1930 Contract Act 1872

Competition 2002

FSSA 2006 PSG 2011 LM 2009

Awareness Level of Different Legislations

Aware Male Aware Female

Right to be Informed

12

Awareness Regarding Regulatory Agencies

0

5

10

15

20

25

30

35

40

ERCTRAI

FSSAI SEBIIRDA

RBIPFRDA

FMC

26 27

16 1624

40

25

8

13

39 38

23

28

32

51

30

14

1922

12 11

20

34

22

4

ERC TRAI FSSAI SEBI IRDA RBI PFRDA FMC

Awareness Level of Regulatory AuthoritiesUrban Rural

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

60

12

15

17

15

0 10 20 30 40 50 60 70

Bank Account Number

School/College Admission

Electricity

LPG Connection

Insurance

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 19

64

25

6

5

0 20 40 60 80

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

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 products20

Awareness regarding environmental friendly certifications

Yes9%

No91%

Ranking of target States/UTs in term of

overall consumer awareness

21

Bihar, 22

Andhra Pradesh, 21

Uttarakhand, 20

Odisha, 19

Rajasthan, 18

Tamil Nadu , 17

Chhattisgarh, 16

West Bengal, 15

Madhya Pradesh, 14

Uttar Pradesh, 13

Puducherry, 12

Jharkhand, 11

Tripura, 10

Delhi, 9

Haryana, 8

Goa, 7

Maharashtra , 6

Karnataka, 5

Kerala, 4

Gujarat, 3

Punjab, 2

Chandigarh, 1

0 5 10 15 20 25

Bihar

Andhra Pradesh

Uttarakhand

Odisha

Rajasthan

Tamil Nadu

Chhattisgarh

West Bengal

Madhya Pradesh

Uttar Pradesh

Puducherry

Jharkhand

Tripura

Delhi

Haryana

Goa

Maharashtra

Karnataka

Kerala

Gujarat

Punjab

Chandigarh

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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

32

26

25

18

37

31

26

33

14

20

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 purchasing

Always check contents Mark of product before purchase

Unaware of Consumer protection Act

63

29

77

56

86

56

24

39

79

31

69

47

93

RBI is known to the

TRAI is known to

40

27

50

32

47

36

54

13

41

30

Respondent ever approached Consumer forums for grievance redressal

Respondents not choosing any of Redressal Mechanism

Unknown to choosing alternative product/services is the biggest barrier

2.6

93

56

02

92

41

03

89

25

13

92

36

0.3

97

51

Respondents satisfied with the Present Grievance Redressal Mechanism

Respondents aware of internal redressal mechanism of a company

Respondents unaware of external redressal mechanism of a company

Respondents agrees, present Grievance Redressal Mechanism‟s Ability to Compensate Aggrieved Consumer

27

13

14

13

14

25

27

25

39

09

20

18

36

14

06

11

55

07

06

06

Respondents aware of “Jago Grahak Jago”

Awareness level of respondents on Consumer Rights

51

41

81

42

59

62

65

48

81

69

Respondent‟s aware about the public consultation

Respondents Participation in Public Hearing/ Public Consultation

Lack of awareness among people for not participating in such events

23

06

64

23

14

80

34

17

39

06

02

22

11

03

35

People‟s awareness regarding environmental friendly certifications

Respondents Always Purchase Environment Friendly Products

Willingness to pay extra money for such products

09

28

63

13

16

56

39

44

59

11

09

73

2.1

57

71

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 (likeJago Grahak Jago) in all regional languages.

• There is need to creat more awareness about regulatory agencies andtheir regulations for consumer protection. Every regulator shouldhave 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,CUTS International

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

Project Webpage: http://www.cuts-international.org/CART/ConsumersUp/