The Hindu : Karnataka / Bangalore News : West far ahead in consumer movement

Online edition of India's National Newspaper
Wednesday, Jun 20, 2007
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Karnataka

Karnataka - Bangalore

West far ahead in consumer movement

Sharath S. Srivatsa

In the U.S., a panel regulates sale of 15,000 products
Many organisations bring out reports and magazines

Bangalore: The consumer in India is still fighting for his rights, but his Western counterpart is way ahead of him with the consumer rights movement evolving into a potent force. In fact, the American pioneer of the consumer movement, Ralph Nader, actually had the clout to contest for the presidential election. The consumer movement is mature enough to redress grievances and consumers can bring a mighty corporation to its knees if they so wish.

Though the consumer court model is unique to India, consumer redressal is known by different nomenclatures such as the Small Causes Courts, Consumer Help Desks and Consumer Tribunals in different countries. Apart from these, various regulatory bodies take up consumer issues suo motu.

In the U.S., the Consumer Product Safety Commission regulates the sale and manufacture of over 15,000 consumer products ranging from baby cribs to all-terrain vehicles, from barbecue grills to swimming pools. It also undertakes research on potential hazards associated with consumer products, bans dangerous consumer products, and develops voluntary and mandatory standards. It can also ask the producer to withdraw or recall a product if it was found to be detrimental to the health of consumer.

The Federal Trade Commission may interfere to protect the interests of the consumers, especially in contracts that are unilateral. “For instance, a credit card contract that works in India is unilateral in that you cannot impose conditions on the bank. Such contracts could be struck down by the Trade Commission in the U.S.,” a consumer activist said.

There are other mechanisms such as Better Business Bureaus in the U.S and Canada that build trust between the businesses and consumers, both in traditional and online transactions. This bureau invites complaint from consumers about a product, compiles them and sends them to the producer for response. Besides, it also publishes the list of complaints about a product in its newsletter to let the consumer know about the quality of product thus building pressure on the manufacturer or service provider.

Many consumer organisations also bring out reports and magazines which are widely circulated. The U.S.-based Public Citizen, brings out Consumer Report and follow many parameters to rate the products be it food, services or others.

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