217 role of voluntary consumer organisations...
TRANSCRIPT
217
CHAPTER V
ROLE OF VOLUNTARY CONSUMER ORGANISATIONS
Consumer Movements in Great Britain, the U.S.A. and other Western
countries have had a long history. But in India, it is yet to take strong roots. The
Indian consumer is subject to a far greater degree of exploitation at the hands of the
trade than the consumer in Western countries. It has been pointed out by Maitra
Committee that one per cent error in commercial transactions would cause the
consumers an annual loss of Rs, 160 crores in India.1
Consumers' protection cannot be assured by mere legislation. But voluntary
action is essentially required on the part of consumers. Therefore, in addition to
legislation, consumers should establish their organisations to fight against unfair trade
practices. Several guidance association have been doing useful work in checking unfair
trade practices like adulteration and use of inaccurate weights and measures. There are
a number of organisations working for the welfare of the consumers all over India.
The role of these consumer organisations is not only to educate and guide the
consumers with respect to redressal of complaints, but also to make the consumer
movement a reality, through the co-ordinated efforts from all angles. As Jawaharlal
Nehru once stated -
1- S. Sankaran, Business and Society, Marghan Publications, Madras: 1987, p.
218
"Law and constitutions do not by themselves make a country
great. It is the enthusiasm, energy and constant effort of
the people that make it a great nation".2
With the development of standardisation and the consumer protection
efforts of the Government, the consumer organisations are in a better position to play
an important role in protecting and educating the consumers. It has instilled confidence
in the minds of the people and has made them feel that there is a responsive body for
the efforts of consumers.
In this chapter an attempt is made to bring out the roles of voluntary
consumer organisations in general and the selected sample consumer organisations in
particular in safeguarding the interest of consumers. The roles of the Federation of
Consumer Organisations in Tamil Nadu, Federation of Consumer Organisations in
India and at the International level have been discussed.
Organisations are not a new phenomenon in India. Voluntary effort has
always been an important aspect of Indian culture and social tradition. The need for
organising people into accredited associations and their involvement and participation
in consumer protection have now been fully recognised. In the recent years, the
organisations have increased in number, acquired greater significance for the redressal
of consumer grievances.
2. Mohini Sethi and Premavathy Sethuram, CmmmMLj^U££mmSmm' N e w
Delhi: Phoemix Publishing House, 1994, p. 19.
219
A voluntary organisation is an agency which works for the welfare of a
community in any given area out of its own volition. It may be just an individual or a
collection of individuals or it may have a more formal structure'. It is actually a group
of well-trained, committed persons living in an area of activity and dealing and
interacting with the people
Voluntary consumers organisation refers to the organisation formed
voluntarily by the consumers to protect their rights and interests. These have existed
even before the advent of consumer forums. Their work has always been isolated and
no efforts have been made to integrate the functioning of these organisations.
Consumer organisations have their own way of dealing with consumer problems. But
their main aim is to see that the consumer's rights are upheld and his welfare is
obtained.
Another important aspect of the consumer organisations is that they try to
solve the disputes before going to the consumer forums when approached for help. It
is due to this fact that the Government is encouraging the formation of consumer
organisations in India. The public awareness of consumer forums has become
possible with the establishment of consumer organisations. Realising this fact the
Government of India has allocated funds for the use of voluntary consumer
3. D.S. Dhillon and B.S Hansra, "Role of Voluntary Organisations Development", Kurukshetra, Vol.XLIII, No.5, February '95.
220
organisations to promote the objectives of consumer awareness and consumer
education4.
A Consumer Organisation can be registered under the Companies Act, 1956
or any other law for the time being in force such as the Societies Registration Act,
1860, the Indian Trust Act, 1908 or Cooperative Societies Act. In any case, the
purpose of forming such organisations should be for protecting the interest of the
consumers. Consumer organisations function under different names such as consumer
councils, consumer consultancy, consumer social trust, consumer guidance society and
soon.
A voluntary consumer organisation plays many constructive roles in
consumer protection, which includes the following:
1. It accelerates consumer awareness.
2. It publishes brochures, journals and monographs
3. It collects data on different products and tests them.
4. It arranges talks, seminars, workshops and conferences for the purpose
of focusing on the problems of consumers and the relevant solutions.
5. It encourages consumers to boycott goods which are defective and bad in
quality, through confrontation and resistance.
4. The Hindu (Madurai), May 16, 1994.
221
6. It files suits, complaints and writ petitions on behalf of consumers in the
consumer forums.
7. It investigates the problems of the consumers.
8. It resists price-rigging, prevents adulteration, prevents hoarding and
black-marketing, and checks under-weight selling.
9. It produces films on food adulteration, on the misuse of drugs and
cosmetics, on the law for consumer protection and on the agencies for consumer
protection.
10. It educates the consumer to help himself.
11. It educates women regarding consumerism.
12. It organises exhibitions to warn against spurious and adulterated
products.
13. It extends support to Government agencies to bring to book cases of
adulteration, sale of hazardous products and other such malpractices.
14. It educates consumers about prices, trade practices and so on through
journals, bulletins, meetings and conferences.
15. It promotes the network of consumer associations regionwise and
statewise along with the federation.
222
16. It sets up voluntary complaint counters for consumer guidance and
counselling and
17. It motivates people to adopt socially desirable consumption standards.
Role of Selected Sample Voluntary Consumer Organisations
Consumer organisations are voluntarily formed with a view to attain some
objectives. These organisations have their own by-laws. These are managed by the
executive members. The researcher has collected information from the president,
secretary and executive members through a questionnaire to analyse the role of these
organisations. The following are the profile of the selected sample consumer
organisations.
Age of the Organisations
Consumer Movement is still at the infant stage in Tamil Nadu, though there
are many organisations established even before the introduction of Consumer
Protection Act, 1986. But after launching this Act, many have become aware of the
Consumers Protection Act and their own rights.
The age of the consumer organisation is reckoned from the date of
formation of the organisation (Table 5.1). The age compositions of the organisation
reveal that 19.05 per cent of the selected organisations had been in existence for more
than 9 years, while 57.14 per cent had been functioning from 3 to 6 years and 14.29
per cent had been in operation for less than 3 years. It is a significant fact that four
223
organisations had been formed even before the enactment of the COPRA, 1986. After
COPRA, many organisations have started functioning.
TABLE 5.1
Age of the Organisations
Sl.No.
1,
2.
3.
4.
Age as on 31 st December 1995 (in years)
Below - 3
3-6
6-9
Above 9
Total
Number of Organisations
3
12
2
4
21
Percentage to Total
14.29
57.14
9.52
19.05
100.00
Objectives of the Organisations
Every organisation has its own objectives and by-laws to work-
systematically. As could be seen from Table 5.2 a majority of the organisations have
been organised with the major objectives of creating consumer awareness and
educating and protecting them.
TABLE 5.2
224
Objectives of the Organisations
SI.No.
1.
2.
3.
4.
5.
Objectives
Creating comismer awrcncss
Educating and protecting consumers
Fulfilling the requirements of rural
people
Imparting training
Redressing conusmers' grievances
Number of Organisations
17
13
6
7
7
Percentage (N - 21)
80.95
61.90
28.57
33.33
33.33
Classification of Members
In consumer organisations, members are classified into ordinary members,
life-members and institutional members The lite members pay membership fee once in
their life time. The ordinary and institutional members pay membership fees every year.
Institutional Membership is offered to institution/society/company/trust which does not
directly involve itself in working for the rights of the consumer and whose objectives
are generally conducive to people's growth. Besides the objectives of these bodies
should in no way be contradictory to the objectives of the consumer, organisations.
Table 5.3 shows the classification of membership in the selected sample organisation,
where the number of members had increased from year to year. The percentage of the
members and institutional members showed an increasing trends, but percentage of
ordinary members had registered a decline.
225
The subscriptions for these members vary. An ordinary member pays a
small amount by way of subscription. The number of institutional members is less
because all the selected sample organisations do not have this class of membership.
TABLE 5.3
Membership of the Organisations
Sl.No.
1.
2.
3.
Particulars
Ordinary member
Life member
Institutional member
Total
No. of members in the Organisation
1991
2829 (73.65)
979 (25.49)
33 (0.86)
3841 (100)
1992
3189 (72.93)
1138 (26.02)
46 (1.05)
4373 (100)
1993
3958 (73.31)
1378 (25.52)
63 (1.17)
5399 (100)
1994
4991 (70.33)
2015 (28.39)
91 (1.28)
7097 (100)
1995
6405 (69.03)
2734 (29.46)
140 (1.51)
9279 (100)
Categories of Sample Organisations Based on Number of the Members
It has been observed from table 5.4 that the number of organisations has
increased fi-om year to year. In 1991, 12 organisations were functioning, whereas in
1995, the number has increased to 21. Table 5.4 shows that these organisations have
members ranging from below 100 to above 400. During 1991 majority of the
organisations had below 100 members, but in the remaining few years they had
membership ranging from below 100 to above 400, while in 1994 and 1995, 5
organisations had above 400 members each. Hence it may be inferred that the
membership had increased from year to year due to the awareness of consumers.
226
TABLE 5.4
Categories of Sample Organisations Based on Number of Members
Sl.No.
1.
2.
3.
4.
5.
Particulars
Below-100
100 - 200
200 - 300
300 - 400
Above 400
Total
1991
8 (66.67)
1 (8.33)
-
-
3 (25.00)
12 (100)
1992
8 (44.44)
5 (27.78)
2 (11.11)
-
3 (16.67)
18 (100)
1993
8 (40.00)
6 (30.00)
1 (5.00)
2 (10.00)
3 (15.00)
20 (100)
1994
11 (52.38)
4 (19.05)
1 (4.76)
-
5 (23.81)
21 (100)
1995
7 (33.34)
5 (23.81)
2 (9.52)
2 (9.52)
5 (23.81)
21 (100)
Active Members of the Organisation
The members of the organisation differ in style and character. Some of
them are very active and others are not so. The active members take part in spreading
consumer awareness and safeguarding the interest of the consumers. Table 5.5 shows
the number of active members in the selected sample organisations. The number of
active members had been increasing year after year. The proportion of active members
to total number of members is considerable. Organisations had more than 50 per cent
of the active members in all the years except in 1994 and 1995.
227
TABLE 5.5
Number of Active Members
Sl.No.
1.
2.
3.
4.
5.
Year
1991
1992
1993
1994
1995
Total
Total No. of Members of the
Selected Organsiations
3841
4373
5399
7097
9279
29989
Number of Active Memberss
1939
2564
3013
3410
4497
15423
Percentage to Total Number of
Members
50.48
58.63
55.81
48.05
48.46
51.43
Categories of Sample Selected Organisations based on Active Membership
As could be seen from Table 5.6, the active members form categories of less
than 25 members to above 100. A majority of the organisations had active membership
of less than 25 during the period under review. Active membership was above 100 in 3
consumer organisations in 1991 and in 1995, 5 organisations belonged to this category
and in the remaining three years 4 organisations had above 100 active members.
228
TABLE 5.6
Categories of Sample Organisations based on Active Membership
Sl.No.
1.
2.
3.
4.
5.
Particulars
Below - 25
25 - 50
50 - 75
75 - 100
Above 100
Total
1991
9 (75.00)
-
-
-
3 (25.00)
12 (100)
1992
9 (50.00)
5 (27.78)
-
-
4 (22.22)
18 (100)
1993
8 (40.00)
4 (20.00)
3 (15.00)
1 (5.00)
4 (20.00)
20 (100)
1994
6 (28.57)
5 (23.81)
4 (19.05)
2 (952)
4 (19.05)
21 (100)
1995
6 (28.57)
5 (23.81)
1 (4.76)
4 (19.05)
5 (23.81)
21 (100)
Procedures Adopted for Membership
Any person ordinarily resident of Tamil Nadu interested in the objects of the
organisations can be enrolled as a member by applying to the secretary. The members
can be removed from the membership of the organisation only by the executive
committee if it is found that the member has acted against the interests of the
organisation or failed to pay the subscription within the stipulated period. It is
observed that 85 per cent of the organisations admit any individual as a member
immediately after filling the application and paying the prescribed fee (Table 5.7),
229
TABLE 5.7
Procedures Adopted for Membership
Sl.No.
1.
2.
Particulars
Immediately after filling the application and paying the prescribed fees
Granting temporary membership for 6 months
Total
Number of Organisations
18
3
21
Percentage to Total
85.71
14.29
100.00
Qualification Required to Become a Member
The membership of the organisation is granted to persons possessing some
qualification. Out of 21 organisations. 80.95 per cent reported that an individual
required special qualification to become a member. Table 5.8 shows that the members
should no. have been convicted (47.06%), or mentally retarded (47.06%) They
should not be politicians (70.59%). Caste, creed and sex (70.59%) are no. taken into
account. A minor is considered not qualified (76.47%).
TABLE 5.8
230
Conditions for Membership
Sl.No.
1.
2.
3.
4.
5.
Conditions
Should not have been convicted
Should not be mentally retarded
Should not be a politician
Caste, creed and sex do not matter
Should not be a minor
Number of Organisations
8
8,
12
12
13
Percentage (N=17)
47.06
47.06
70.59
70.59
76.74
Qualifications of Executive Members
Every consumer organisation has executive members for effective
performance. They are required to possess special qualifications. Table 5.9 shows that
the executive members require qualifications like active participation in consumer
affairs (52.38%), be a social worker (61.90%), devote time for. the development of the
organisation (33.33%) and should not be a businessman (42.86%).
TABLE 5.9
231
Qualifications of Executive Members
Sl.No.
1.
2.
3.
4.
Qualifications
Active participation in consumer affairs
Be a social worker
Devote time for the development of the organisation
Be not in business
Number of Organisations
11
13
7
9
Percentage (N = 21)
52.38
61.90
33.33
42.86
Powers of Executive Members
The Executive Committee normally consists of more than three members.
They can hold office for three years. Every member of the organisation is eligible for
election or re-election to any of the offices of the organisation provided he had been a
member for not less than six months continuously. The executive members are
responsible for the overall administration of the organisation. Table 5.10 shows that
decision making (42.86%), planning and policy making (52.38%), attending meetings
of the organisation (23.81%), redressing grievances (42.86%) and administering the
organisation (38.10%) are reported to be the powers of the executive members.
232
TABLE 5.10
Powers of Executive Members
Sl.No.
1.
2.
3.
4.
5.
Powers
Decision-making
Planning and policy-making
Attending meeting
Redressing grievances
Administering the organisation
Number of Organisations
9
11
5
9
8
Percentage (N = 21)
42.86
52.38
23.81
42.86
38.10
Duties of Executive Members
The executive members have many duties to perform in the organisation.
They have to submit audited annual report to the Registrar. The performance of
consumer organisations also depends on the executive members. It is observed that
giving direction to work (52.38%) and executing the order of the president (57.14%),
giving foil cooperation (42.86%) and making suggestions to redress grievances
(28.57%) are the major duties of the Executive Members (Table 5.11).
TABLE 5.11
233
Duties of the Executive Members
SI No.
1.
2.
3.
4.
Soun
Duties
Giving direction to work
Executing the order of the president
Giving full cooperation
Giving suggestions to redress grievances
ics of Funds
Number of Organisations
11
12
9
6
Percentage (N = 21)
52.38
57.14
42.86
28.57
TABLE 5.12
Finance is the life-blood of all organisations. There are a number of ways
through which the consumer organisations can raise funds. Normal sources are
collection of entrance fees and subscriptions, donations and Government grants and
aids form other sources. Table 5.12 reveals that subscriptions from members is the
main sources for consumer organisations and the rest are additional sources.
234
Annual Subscription
Subscriptions are collected monthly or annually or in the form of life
premium from members. Each organisation collects subscriptions at the rate prescribed
in its by-laws. Table 5.13 shows that 57.14 per cent of the respondents collect
subscriptions of less than Rs.50 per annum. Similarly out of 21 organisations, about
4.76 per cent of them collect above Rs.200 per annum. These organisations are
formed to render service to the consumers. They collect only a small amount even
though they face financial crisis.
TABLE 5.13
Annual Subscription of Members
Sl.No.
1.
2.
3.
4.
5.
Particulars
Below Rs.50
Rs.50 - 100
Rs.lOO - 150
Rs.150 - 200
Above Rs.200
Total
Number of Organisations
12
3
3
2
1
21
Percentage to Total
57.14
14.29
14.29
9.52
4.76
100.00
Life-Subscription of Members
Table 5.14 shows the amount of life-subscription of members. About 57.14
percent of organisations collect life-subscriptions from the members ranging from
235
Rs.lOO to 300 and only 4.76 per cent of them collect below Rs.lOO. Similarly 38.10
per cent of the organisations collect life-subscription above Rs.300.
TABLE 5.14
Life-subscription of Members
Sl.No.
1.
2.
3.
4.
5.
Subscription
Below Rs. 100
Rs.lOO - 200
Rs.200 - 300
Rs.300 - 400
Above Rs.400
Total
Number of Organisations
1
5
1
4
4
21
Percentage to Total
4.76
23.81
33.33
19.05
19.05
100.00
Annua! Expenditure
Consumer organisations maintain accounts properly and the accounts are
audited by qualified persons. About 52.38 per cent of the organisations show an
annual expenditure below Rs.20000, 23.81 per cent incur expenditure above Rs.40000
and the rest show expenditure between Rs.20000-40000 annually.
mm
236
TABLE 5.15
Annual Expenditure of Organisations
Sl.No.
1.
2.
3.
4.
5.
Expenditure
Below Rs. 10000
Rs. 10000 - 20000
Rs.20000 - 30000
Rs.30000 - 40000
Above Rs. 40000
Total
Number of Organisations
6
5
3
2
5
21
Percentage to Total
28.57
23.81
14.29
9.52
23.81
100.00
Annual Income
As could be seen from table 5.16, about 52.38 per cent of the organisations
get an annual income below Rs. 10000, 14.29 per cent earn between Rs 10000 - 20000
and the rest earn between Rs.20000 to 40000 and above. As non-profit organisations,
whatever income they receive, they utilise it for the welfare of consumers It is thus
inferred that the income of majority of the organisations is less than the expenditure
and every year they have a deficit balance. Hence steps should be taken to solve this
problem.
237
TABLE 5.16
Annual Income of the Organisations
Sl.No.
1.
2.
3.
4.
5.
Inc&MQ,
Below Rs. 10000
Rs. 10000 - 20000
Rs.20000 - 30000
Rs.30000 - 40000
Above Rs.40000
Total
Number of Organisations
11
3
2
1
4
21
Percentage to Total
52.38
14.29
9.52
4.76
19.05
100.00
Office-Bearers of the Organisations
The consumer organisations have many office-bearers like president,
vice-president, secretary, joint-secretary, treasurer and chainnan. But there is no
uniformity in the structure of the organisations. Normally the organisations have a
president, secretary and treasurer. Some of these organisations have additional office
bearers, based on their requirements.
Table 5.17 shows profile of office-bearers of the sample selected
organisations.
A majority of the office-bearers receive rewards in the form of honorarium.
All presidents of the organisations are males and married and majority of them are
above 50 years of age. They belong to 'other1 categories regarding occupation is
concerned. It is thus inferred that majority of the presidents of the organisations are
238
retired persons and they make use of their leisure time for the purpose of rendering
service to consumers.
Many secretaries and treasurers belong to the age group of 30 to 40 years.
All secretaries of the organisations are males and are married. None of the office
bearers in these organisations is illiterate or an agriculturist. Majority of the secretaries
are lawyers. The monthly income of the president and secretary of the organisations
vary from Rs.2OO0 to above Rs.4000. Generally, the income levels of office-bearers
are moderate and particularly among treasurers a few earn less than Rs.2000. Mostly
they are either housewives or unemployed youth.
TABLE 5.17
Profile of Office-Bearers of the Organisations
Sl.No.
1.
2.
3.
4.
5.
6.
7.
Particulars
Reward
Offer Honorary Not Offer Honorary
Age
Below 30 30 - 40 40 - 50 Above 50
Sex
Male Female
Marital Status
Married Unmarried
Educational Qualifications
Illiterate UptoH.Sc. (+2) Graduates Post Graduates Others
Occupation
Agriculturist Businessman Lawyers Government Department Others
Monthly Income
Below Rs.2000 Rs.2000 - 3000 Rs.3000 - 4000 Above Rs.4000
President (N = 21)
14 (66.67) 7 (33.33)
2 (9.52) 7 (33.33) 12(57.15)
21 (100)
21(100)
8 (38.09) 11 (52.39) 2 (9.52)
2 (9.52)
4(19.05) 15 (71.43)
17 (80.95) 4(19.05)
Secretary (N = 21)
14 (66.67) 7(33.33)
3(14.28) 15(71.43) 3(14.29)
21(100)
21 (100)
14 (66.67) 4(19.05) 3(14.28)
2 (9.52) 11(52.38) 4 (19.05) 4(19.05)
4(19.05) 9 (42.85) 8(38.10)
Treasurer (N = 21)
14 (66 67) 7 (33.33)
3(14.28) 16 (76.20) 2 (9.52)
15(71.43) 6(28.57)
13 (61.90) 8(38.10)
3(14.28) 8(38.10) 7(33.33) 3(14.29)
4(19.05)
9(42.85) 8(38.10)
6(28.57) 7 (33.33) 8(38.10)
240
Working Hours
Consumer organisations have time-schedule to solve consumers grievances.
Nearly 33.33 per cent of the organisations function on a full-time basis and the others
have prescribed timings. About 9.52 per cent of the organisations function only in the
morning and 19.05 per cent function during afternoons. But about 38.10 per cent of
the organisations work like Government offices from 10 A.M. to 5 P.M. (Table 5.18).
TABLE 5.18
Working Hours of the Organisations
Sl.No.
1.
2.
3.
4.
Working Hours
10 A.M. to 1 P.M.
10 A.M. to 5 P.M.
5 P.M. to 8 P.M.
Full Time
Total
Number of Organisations
2
8
4
7
21
Percentage to Total
9.52
38.10
19.05
33.33
100.00
Settlement of Grievances
Consumer organisations are empowered to discuss and redress consumer
grievances. They also help the consumers to file cases in the consumer disputes
redressal forum. The executive members of the organisation normally redress the
consumer grievances. In case they are not able to settle, they send the same to the
consumer forum. Table 5.19 shows the details of the cases settled by the consumer
organisations and the consumer forums in different areas. A large majority of the cases
241
have been settled by the consumer organisations during the five years because they
have the legal jurisdiction to settle consumer cases. During 1991, 1992 and 1994 the
cases relating to unfair trade practices were more followed by other categories which
include the claim against municipalties, corporations and other government
departments.
242
243
Distribution of Consumer Organisations According to the Number of Cases Settled
Table 5,20 reveals that during 1991 and 1992, a majority of the
oeganisations settled less than 50 cases in each year. But in 1993, 1994 and 1995 a
large number of sample organisations settled between 50 to 100 cases each year. It
may be inferred that the number of cases settled had increased from year to year due to
the increased awareness of consumers; and consumer organisations have proved to be
effective in settling cases.
TABLE 5.20
Distribution of Consumer Organisations According to the
Number of Cases Settled
Sl.No.
1.
2.
3.
4.
No. of Cases Settled
Below - 50
50 - 75
75 - 100
Above 100
Total
1991
8 (66.66)
2 (16.67)
2 (16.67)
12 (100)
1992
10 (55.56)
2
(11.11)
2 (11.11)
4 (22.22)
18 (100)
1993
5 (25.00)
9 (45.00)
2 (10.00)
4 (20.00)
20 (100)
1994
3 (14.29)
8 (38.09)
4 (19.05)
6 (28.57)
21 (100)
1995
2
(9 52)
6 (28,58)
7 (33,33)
6 (28.57)
21 (100)
Fees Charged
Consumer association is a voluntary body to settle the consumers' problems
with or without charging fees. About 80.95 per cent of the associations do not charge
fees because they are formed to render service to the consumers. About 19.05 per cent
of the organisations charge fees, because these organisations are not sound financially
(Table 5.21).
H |
244
TABLE 5.21
Fees Charged to Deal with Cases
Sl.No.
1.
2.
Particulars
Did not charge fees
Charged fees
Total
Number of Organisations
17
4
21
Percentage to Total
80.95
19.05
100.00
Follow-up Action
Execution of the case is a difficult one, even after getting the decree. Hence
consumer organisations take follow-up action after the judgement of the DCDRF, if
the consumers had filed the cases through them. Table 5.22 shows that 90.48 per cent
of the organisations take follow-up action to execute the decree and the rest do not
take any step after the decree is awarded.
TABLE 5.22
Follow-up Action After the Judgement
Sl.No.
1.
2.
Particulars
Took follow up action
Did not take any follow up action
Total
Number of Organisations
19
2
21
Percentage to Total
90.48
9.52
100.00
Problems Faced by the Consumer Organisations in Dealing with the Cases
Consumer organisations are organised by the consumers. They face a
number of problems. It is observed from Table 5.23 that shortage of funds is the major
245
problem (80.95%), followed by disinterest and delay in getting judgement (61.90%).
Lack of cooperation from the complainant (28.57%), lack of cooperation from fomm
officials (38.10%) and inadequate staff (28.57%) are some of the other problems.
TABLE 5.23
Problems of Consumer Organisations
Sl.No.
1.
2.
3.
4.
5.
Problems
Shortage of funds
Disinterest and delay in getting judgement
Lack of cooperation from forum officials
Lack of cooperation from the complainant
Inadequate staff
Number of Organisations
17
13
8
6
6
Percentage (N=21)
80.95
61.90
38.10
28.57
28.57
Suggestions to Improve Consumer Organisations
Table 5.24 reveals suggestions offered by the consumer organisations to
improve their functioning. Cooperation among the members (57.14%), knowledge of
COPRA in the office-bearers (52.38%) and working with dedication (52.38%) are the
major suggestions.
246
TABLE 5.24
Suggestions to Improve Consumer Organisations
Sl.No.
1.
2.
3.
4.
5.
6.
Suggestions
Cooperation among members
Office-bearers with knowledge of COPRA
Selecting the right executive members
Avoiding politicians and businessmen for membership
Working with dedication
Taking steps to get grants and aid from the Government
Number of Organisations
12
11
8
7
11
9
Percentage (N=21)
57.14
52.38
38.10
33.33
52.38
42.86
Suggestions to Improve the Functioning of Consumer Redressal Forums
The executive members were asked to make suggestions to improve the
flinctioning of the consumer redressal forums. The suggestions made by them are
given in Table 5.25. As shown in the table, giving the power of interim injunction,
appointing genuine, qualified and non-political members and appointing the president
and members of the forum without any delay were the principal suggestions made by a
majority of the respondents of the consumer organisations.
247
TABLE 5.25
Suggestions to Improve the Functioning of Consumer Disputes Redressal Forums
St.No.
1.
2.
3.
4.
5.
Suggestions
Appointing genuine, qualified and non-political members
Appointing president and members without any delay
Appointing judicial staff
Settling cases within 90 days
Power to issue interim injunction
Number of Organisations
12
12
6
10
16
Percentage (N = 21)
57.14
57.14
28.57
47 62
76.19
From the foregoing discussion, it is clear that consumer organisations are
established with certain objectives. These have their own by-laws. The members as
well as the executives should be qualified. These have only limited percentage of
active members. Subscription is the main source of income. These have their own
federation for rendering effective service to the consumers.(See Diagram)
FIGURE 5.3
DIAGRAMATIC REPRESENTATION FOR VOLUNTARY CONSUMER ORGANISATIONS
INTERNATIONAL ORGANISATION OF CONSUMERS' UNION
flOCU]
CONFEDERATION OF INDIAN CONSUMER ORGANISATIONS
(CICO)
FEDERATION OF CONSUMER ORGANISATIONS IN TAMIL NADU
(FEDCOT)
VOLUNTARY CONSUMER ORGANISATIONS
CONSUMERS
248
Federation of Consumer Organisations in Tamil Nadu
The consumer organisations in Tamil Nadu have their own federation, called
"Federation of Consumer Organisations in Tamil Nadu (FEDCOT)" All voluntary
consumer organisations are not members of FEDCOT and the non-memebrs of this
federation also do service for the welfare of consumers. The FEDCOT is a
independent body and has its own structure to perform/redress consumers' grievances.
FEDCOT was established in March 1990 with R.R.Dhalavai as its first
president. Several organisations which were regularly attending quartely meetings
convened by the Commissioner of Civil Supplies, Government of Tamil Nadu, realised
the need for a co-ordinated effort in making representation to the Government. It was
in this context that a formal federation was born. In February, 1991, after the Second
National Convention of Consumer Activists held in New Delhi which saw the
formation of CICO, it was decided that a federation in Tamil Nadu should be
strengthened. FEDCOT today co-ordinates with 189 consumer organisations
throughout Tamil Nadu5. It concentrates on providing skills to consumers to
strengthen their hands in using the redressal machinery under the Consumer Protection
Act particularly in areas which have hitherto not been concentrated upon.
FEDCOT has the following objectives.
1. To promote the economic and other interests of the consumer,
5- Thatti Ketka Thavakkam van (Tamil) FEDCOT Practical Guide, Dindigul, 1996
249
2. To check the prices of commodities, qualtiy, quantity and reliability or
gurantee, if any, on consumer products.
3. To control hire-purchase system, reduction sales and gift-offer sales.
4. To promote and aid production and productive enterprises of consumer
products.
5. To initiate and undertake all actions as per law to protect consumer
interest.
6. To create and enquire public opinion and enlist officials including public
sector to help consumer interests and to get relevant laws passed by the legislatures.
7. To enlist the cooperation and goodwill of private sector industry and
commerce, individually and through Chambers of Commerce and other such
organisations in order to secure fair deal for the consumer.
8. To conduct and sponsor training, research, surveys, publications,
seminars, workshops and the like.
9. To motivate and support the members of the organisation.
10. To publish papers, tracts, pamphlets, books, slides and so on for the
promotion of consumers6.
6. FEDCOT, Memorandum of Association, 1994.
250
FEDCOT has four categories of members such as life members, associate
members, institutional members and communicating members and it collects Rs 1,000,
Rs.100, Rs.250 and Rs.50 respectively as subscription. Any council established in
Tamil Nadu and Pondicherry can become a member. It has a management committee
which consists of a chairman, two vice-chairmen, one general secretary, two joint
secretaries and a treasurer. In order to administer the associations, FEDCOT has
devised six zones. Each zone has a zonal council comprising the member councils of
FEDCOT of the respective Districts comprising the zone. The purpose of zonal
council is only to share the experience of members of FEDCOT in the various districts
comprising the zone and for the office-bearer of FEDCOT to meet the member
organisations in the zone and receive feed back of the progress made by FEDCOT. The
accounts of FEDCOT are audited by a qualified person.
A confederation of Indian Consumer Organisation (CICO) is functioning
from Delhi to instruct the voluntary consumer assoications and to lead the consumer
movement in India in the right direction. FEDCOT is an active member of CICO and is
participating in the noble task7.
FEDCOT has a separate training department headed by a training director,
This department is equipped with Modern Computer, Laser Printers, Typewriters, and
7. An Application of National Award on Consumers Protection (Voluntary Consumer Organisation) for 1994, submitted by FEDCOT, Madras, p.7.
251
Duplicating Machines. It has a separate documentation centre for the benefit of
consumer activists, researchers and others. It provides special training and workshops
programme to the consumer associations, acadamicians, research scholars and others.
These programmes are extremely useful for initiating campaigns of various concerns.
The following are the major achiements of FEDCOT:
1. FEDCOT evolved a common code of conduct for its own member
organisations and lobbied the same in the State Consumer Protection Council
Meetings. As a result of these efforts, the matter echoed in the Central Consumer
Protection Council and a committee was set up to finalise such a code which has since
l5een made. This' is a very significant contribution of FEDCOT in the year 1994.
2. For first time in the history of our country the department of consumer
affairs of the Government of India had succeeded in arranging for a meeting of the
former Finance Minister Dr. Manmohan Singh to discuss consumer affairs with the
selected representatives of consumer organisations. FEDCOT is one among them.
3. It had conducted 50 Taluk Level Training Programmes for common
people who are not aware of consumer activities and 2451 persons participated.
Nineteen Zonal Level Programmes for members of the voluntary consumer
organisations were conducted and 1200 participated. Three trainers' training
programmes in specific fields were conducted and 73 participated till April 1998.
4. The total of number of consumer associations which became members of
FEDCOT rose from 18 during 1991 to 242 in April 1998.
252
5. FEDCOT has been the active member in the State and Central Consumer
Protection Council even from the date of its inception.
6. FEDCOT has received awards from the Central Government for its
tremendous achievements during 1994.
7. It has the maximum number of rural-based association members in India,
more than other state level federations.
8. It has relentlessly been compaigning that consumer protection should be
included in the college curricula. When Manonmaniam Sundaranar University at
Tirunelveli came forward to include it as a subject under part IV in all its colleges,
FEDCOT was invited to conduct an orientation programme for the college teachers
from all the colleges of the University. From, then on it has conducted a three days'
orientation programme. Sixty five college teachers took part in the programme.8
Federation at National Level for Consumers: Confederation of Indian Consumer Organisations (CICO)
The confederation of Indian Consumer Organisations is the national-level
Federation. The CICO was formed in New Delhi in Febniary 1991 at the end of the
second national convention of consumer activists. The primary objective of CICO was
to make the consumer movement a popular grass-root movement. The primary target
of CICO is to facilitate the formation of State-level federations of consumer
organisations. CICO developed a project proposal to consititue a Consumer Advice
8. Ibid., p. 13.
253
Bureau in every District. As a result of the call given by CICO, State-level federations
have come up in West Bengal, Orissa, Andrapradesh, Tamil Nadu, Kerala, Delhi and
Rajasthan. However the CICO lacks infrastructural factilities and needs greater
support both from the Government and consumer organisations so that it becomes the
focus of the consumer movement throughout the country. For effective achievement,
it has constituted four working groups to deal with public utilities, price and public
distribution systems, standards, quality control and product safety, consumer
protection laws and redressal machinery and problems of rural consumers.
Federation at International Level for Consumers: International Organisation of Consumers' Union (IOCU)
The International Organisation of Consumers' Union is the federation at the
international level. The IOCU is an independent, non-profit and non-political
foundation. It promotes world-wide cooperation in the comparative testing of
consumer goods and services and in all other aspects of consumer information,
education and protection. It has clearly brought out the importance of consumer
movement in all countries to protect, represent and promote consumer citizen's interest
by means of consumer education, guidance, legislation and information. Consumer
movement places equal stress on its twin goals namely demand for consumer
information and guidance and demand for consumer protection against unfair trade
practices.
The IOCU based in the Hague, Netherlands, is the world centre for
consumer affairs. It was founded in 1960 by five consumer unions from the USA, the
254
UK, Australia, Belgium and Netherlands. Today, IOCU links the activities of consumer
organisations in more than seventy countries9.
The main functions of IOCU includes promotion of international
cooperation in the comparative testing of consumer goods and services, exchange of
information on all aspects of consumerism. IOCU provides a specialised source of
information on technical, legal and other aspects of consumer affairs. IOCU
constitutes an international forum for discussion of all kinds of consumer problems.
IOCU represents the interest of consumers at the international level, covering wide
fields from food standards to Monopolies and from safety of products to environmental
protection. IOCU encourages the formation of new consumer organisations, giving in
particular practical aid and encouragement to the development of consumer education
and protective programmes in the developing countries.
It provides permanent representatives to the United Nations and many other
international organisations. It produces a range of publications for dissemination of
information on all consumer matters and it maintains a secretariat and a library for the
collection and dissemination of legislative, technical and educational data relevant to
consumer interests.
9. S.A. Sherlekar, op.cit. p.375.
255
CONCLUSION
The consumer organisations not only solve consumers' cases but they also
act as consultants, advisors and mediators for the consumers in many fields. They
render general counselling on family disputes. They conduct workshops, seminars and
training programmes to create consumer awareness. They file public interest litigations
also. Some of the organisations work on a full-time basis. A notable feature is that a
few organisations and consumer activists in Tamil Nadu have received awards through
the Government of India for their sincere efforts and great service. The study reveals
that the number of organisations has been increasing from year to year. The cases filed
through these organisations have also increased due to the increasing awareness of
consumers.