Professional Documents
Culture Documents
Cuts 1
Cuts 1
formulate the policy and CUTS was the Royal Government of Bhutan Sustaining publications: CUTS
made a member of the committee. invited CUTS to draft a comprehensive publications like Panchwan Stambh
The 1998 draft policy prepared by law covering consumer protection, (The Fifth Estate – a quarterly
CUTS was taken as the basis for competition, and utility regulation newsletter in Hindi) and Gram Gadar
forming the National Consumer for the country. CUTS drafted a (Village Revolution – a monthly wall
Policy. comprehensive law covering newspaper) have been able to
consumer protection, competition generate awareness among the rural
Right to boycott: Taking a leaf out and utility regulation for Bhutan and people of Rajasthan State, in
of India’s freedom struggle, on prescribed an institutional framework particular, and other parts of the
January 26 (Republic Day) 1990, to implement this law. It is expected country, in general, and sensitise the
CUTS designed, adopted and that the new consumer law of Bhutan stakeholders such as government
declared two more rights of (to be adopted soon) would draw officials, NGOs, social activists,
consumers, i.e. right to boycott and inputs from this draft prepared by organisations and individuals. In
right to opportunities. The rationale CUTS. fact, Gram Gadar has been successful
behind right to opportunities was in providing an active forum for the
that without it the right to basic Power sector reforms: In the recent oppressed class (including
needs remained meaningless, while past, CUTS has started working on consumer) in Rajasthan to seek
the right to boycott would second-generation consumer issues justice. (Rubens Ricupero, Former
recognise how consumers have to such as power sector reforms in Secretary General of UNCTAD
assert their rights when other Rajasthan and developed a model for expressed, having been familiarised
remedies fail. consumer involvement. This was with the experience of Gram Gadar
documented by the World Bank as a that, “…the impact and success of a
Status report: In 2001, CUTS successful intervention for a more relatively small publication like this
brought out a comprehensive report inclusive reform process and this one in enriching and changing the
‘State of the Indian Consumer’ that experience will be replicated to lives of many villagers gives us new
examined the plight of Indian other states by scaling up the ‘CUTS impetus to try to improve the lives of
consumers in the light of the UN Model’ in the power sector to the the neediest in our daily work –
Guidelines on Consumer Protection. other identified states for making however remote it may seem at the
This pioneering work, which effective interventions in the process first sight”).
contains vital information on of electricity reform. In the prologue to the “State of
various rights of the consumers, i.e. the Indian Consumers” (2001),
right to basic needs, right to safety, Welfare Fund: One of the major Pradeep S Mehta, Secretary General,
right to choice, right to victories of consumer movement was CUTS pointed out, “let me remind
information, right to consumer the setting up of the Consumer people that what voters are to
education etc., was emulated in Welfare Fund (CWF) through credit politics, consumers are to the
other developing countries of excess recoveries. The CWF is economy. If the nation has to
including Pakistan. Due to its being used to fund consumer develop, consumers have to be
exemplary work in consumer affairs, protection activities. satisfied, with the poor upfront”.
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CUTS IN ACTION; 18th World Congress, October 2007
Why should consumers care about
competition policy?
Phil Evans*
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CUTS IN ACTION; 18th World Congress, October 2007
International Network of Civil Society
Organisations on Competition (INCSOC)
Background
As an offshoot from one of CUTS’ projects
on competition research, advocacy and
capacity building entitled, “Comparative
assessment of the competition regimes in
seven developing countries of the
Commonwealth”, (7Up project) – several
CSOs across the globe, demanded for and
envisioned a coalition to promote a healthy
competition culture in the world.
Healthy competition principles are
important in all aspects of regulatory INCSOC Launch in Geneva, 2003
reform, including privatisation and
restructuring where the state reduces its direct • To catalyse research and networking on competition
involvement in the economy and performs the role of issues and create better understanding on them; and
regulating the economy. Competition principles act as • To liase with all relevant institutions for sharing of
tools to enhance dynamic and competitive markets experiences and promoting mutual learning on
fostering growth and economic welfare. competition issues.
The 7Up project revealed a dire need for building a
network of stakeholders, especially civil society, so Administration & General Meetings
that the competition regimes at the national levels could INCSOC is a virtual network, which means that the work
be strengthened and developed. takes place through the mode of Internet. CUTS plays
Competition enforcement agencies of different the role of the Secretariat for INCSOC. Activities of INCSOC
countries of the world have formed the International are guided by the Co-Chairs Allan Asher of Energy Watch,
Competition Network (ICN). Similarly, the Global UK and Pradeep S Mehta of CUTS, India. Besides, a
Competition Forum (GCF) of competition lawyers has Steering Commitee comprising 24 members also provide
been created under the auspices of the International their inputs on activities of this coalition.
Bar Association. The Organisation for Economic Co-
operation and Development (OECD) has floated a Global Annual Conferences
Forum on Competition, which organises annual a. First Annual Conference (and Launch)
meetings of competition authorities. The first general body meeting of the Network was
A platform for civil society to engage on global held on February 20, 2003. Over 35 organisations that
competition issues has been absent. Realising this, in attended the meeting at Geneva, expressed a strong
February 2003 in Geneva, civil society representatives support for such a network. These organisations came
from various regions assembled at the behest of CUTS from least developed, developing and developed
and launched the International Network of Civil Society countries across the world.
Organisations on Competition (INCSOC), with the main
objective to promote and maintain a healthy b. Second Annual Conference
competition culture around the world by coalition The second general body meeting was once again
building among civil society and other interested convened in Geneva, with the title “Engaging Civil Society
organisations/individuals. Since its inception, INCSOC in Promoting a Healthy Competition Culture”, on
has been working towards meeting its goal of building January 29, 2004. Over 50 people from all over the
a network of stakeholders, especially civil society, so world participated and brainstormed on the future
that the competition regimes at the national level could activities of this Network.
be strengthened, and developed where absent.
c. Third Annual Conference
Mission The third annual conference of the Network was held
To promote and maintain a healthy competition culture in Bangkok, Thailand, from June 29 to July 01, 2006.
around the world by coalition building among civil This conference was attended mostly by the INCSOC
society and other interested organisations. members from Asia, though some others from Africa
were also present. The objectives of the conference were:
Objectives developing understanding of participants on ways to
• To build coalitions of civil society organisations strengthen regulatory governance by operationalising
interested in promoting a healthy competition culture; competition regimes; providing the members a basic
• To build capacity of the civil society organisations overview of the elements of competition policy and law;
on competition policy issues to enable them to and discussing issues for the network to engage in the
engage in competition advocacy at different levels; future.
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CUTS IN ACTION; 18th World Congress, October 2007
Milestones world, where such information was absent) it was
a. Competition Regimes in the World – decided that INCSOC would initiate work on the volume
A Civil Society Report entitled, “Competition Regimes in the World – A Civil
Though the Society Report” (referred to as CiRComp)
number of CUTS spearheaded and coordinated this mammoth
countries that endeavour of developing a global almanac on
have embraced competition. It was decided that this report would
competition comprise of brief country essays on the prevailing
regimes has competition scenario. The report took over two years
increased, there to prepare and covered 119 jurisdictions. A remarkable
are many more feature of this titanic assignment was that the INCSOC
which are members and other associates of CUTS contributed the
struggling to country essays voluntarily.
design and Most of the countries covered in this volume have
implement their competition legislation, while some are in the process
own competition of adopting one. The report also carries a brief
legislations. This description of the regulatory regime and the consumer
situation has protection framework of each country. Each of the
further worsened chapters is illustrated with box stories on competition
due to the cases, which offer good insight. Overall, the country
absence of an papers in the compilation provide a glimpse of the
informed civil society network conversant with the competition scenario in the select countries in simple
nature of competition and types of anti-competitive language, and with well-exhibited information.
practices, which adversely affect consumer welfare. Already, this report has generated a lot of interest
In this scenario, it was felt important to share not only in the global competition fraternity, but also
experiences and information on competition policy and among others working on socio-economic and public
anti-competitive practices which prevail/exist in each policy issues.
country. Keeping this in view, competition authorities Refer www.competitionregimes.com to view the outline
of the world came together to form the International of this report.
Competition Network (ICN). To complement such efforts
at the civil society level, INCSOC was formed. b. Consumer Regimes in the World
In order to raise the profile of civil society on A project similar to the volume on competition
competition policy and law, research and advocacy, and regimes across the world has been planned as the next
to gather understanding on the prevailing competition big endeavour under INCSOC. Work on this has already
scenario from across the world (especially from the third started, and a ‘Call for Papers’ has been issued as below.
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CUTS IN ACTION; 18th World Congress, October 2007
Consumer Protection in India:
CUTS Recommendation for the 11th National
Developmental Plan Document of India
Introduction Acts like the COPRA; Competition In 1987, CUTS could get a
The necessity of protecting and Act 2002; the Standards of Weights compensation of Rs 50,000 for a lift
promoting the interest of consumers and Measures Act, 1976; the Bureau accident victim from a lift
against fraudulent, unethical and of Indian Standards Act, 1986, the manufacturing company in Calcutta,
unfair trade practices marked the Right to Information (RTI) Act, 2005 which was also charged with
origin of the consumer movement are enacted for the benefit of improper maintenance, without
in India. Over time, the movement consumers. Regulatory bodies like going to any court (‘Taking on a
found expression in efforts to bring Ombudsmen in Insurance and titan’, India Today, August 15,
pressure on business firms as well Banking; Telephone and Electricity 1987). One mindset and
as the government to correct unfair Adalats (‘Courts’); Medical Council paradigmatic issue relating to sale
business conduct. Following the and Bar Council; Council for Fair and warranty conditions is still a
economic reforms in 1990s, radical Business Practices; the Advertising huge problem in India. The
changes in the field of manufactured Standards Council of India (ASCI); unilateral declaration on bills and
goods has led to the influx of various Chamber Code of Ethics etc., provide cash memos: ‘Goods once sold will
consumer goods into the Indian some checks and balances, but many not be taken back’ has to be viewed
market and a variety of services of them are not effective. in the light of the practice in
areas have expanded and made Consequent to a Chief Ministers’ developed countries where the seller
available to consumers. This change conference in May, 1997, the declares, ‘In case you are not fully
in the market needs an effective, Government of India formulated satisfied with our product, you can
efficient and fair consumer more than 600 Citizens’ Charters in bring the same to us within a month
protection regime. most government departments and for either replacement or return of
The Consumer Protection Act, undertakings – at both central and your money’.
1986 (COPRA) has come as a panacea state levels – to provide information
for Indian consumers. However, to consumer/citizens Quality Infrastructure & Safety
majority of Indian consumers are still ( w w w. g o i c h a r t e r s . n i c . i n ) . Recognising the shift of emphasis on
not aware of the provisions in the Unfortunately, most of the Charters quality, and providing the desired
COPRA, and other consumer run into pages and have not ever quality infrastructure, there is a
protection legislations, such as the been assessed or reviewed. Despite need to tackle the three pillars of
Competition Act or the Prevention various measures, reasons for lack the quality cycle – standards
of Food Adulteration Act (to be of awareness among consumer are: development, standards information
replaced by the Food Standards and • Severe apathy on the part of and conformity assessment. At
Safety Act) or the Weights & Measures consumers; present, Bureau of Indian Standards
Act. Consumer protection is also a • Lack of faith in the system; (BIS) formulates voluntary standards
primary mandate of infrastructure • Lack of awareness about at the national level in India. For a
regulatory regimes for which, consumer issues; and healthy environment, Article 21 of
regulators need to ensure effective • Illiteracy. the Constitution requires the state
consumer participation in the to protect life, which includes the
regulatory process. Protection and Redressal right to a healthy and safe
The right to seek redress is set out in environment.
Information, Awareness, and the Preamble to the Constitution of
Education India. Under COPRA, three-tier, The Challenges
Though India celebrates two annual simple, quasi-judicial machinery at India faces the following challenges
consumer days, i.e. March 15 (the the national, state and district levels in ensuring better consumer
World Consumer Rights Day) and has been established. Disputes protection: (i) Consumer Education;
December 24 (the National Redressal Forum known as District (ii) Consumer Safety; (iii) Grievances
Consumers Day), a great majority of Forum, State Commission and the Redressal Mechanism; (iv) Investor
consumers are unaware of their National Consumer Disputes Redressal Protection; (v) National
rights. According to the 2006 Commission have been established. Standardisation Policy; (vi)
Report of the National Survey on Besides, the Telecom Disputes and Enforcement of Standards; (vii)
COPRA commissioned by the Appeals Tribunal also take up class National Consumer Policy; (viii)
Comptroller and Auditor General action complaints of consumers in the Sustainable Consumer Funding
(CAG) of India, 82 percent of Indian matters relating to telecom and Cable Mechanism; (ix) National Consumer
consumers are not aware of the TV. The Competition Act, 2002 is also Protection Authority (NCPA); and
Consumer Protection Act and 66 empowered to take up complaints of (x) Consumer Impact Assessment
percent those of consumer rights. a class of consumers. (CIA)
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CUTS IN ACTION; 18th World Congress, October 2007
CUTS Publications on Consumer Protection
Consumer Protection Act and the Supreme Court Study. This report/study is meant to highlight the
‘Consumer Protection Act and present status with respect to the eight consumer rights
the Supreme Court’ is specially in the Indian context. The main objective of this
written to act as a comprehensive stocktaking exercise is to help in the drafting of a
and reliable manual of the National Consumer Policy and to suggest measures to
consumer cases addressed by the be undertaken in the future for the proper
apex court and its application in implementation of the same. The report is also expected
the interest of the consumer. It to help other countries, particularly the developing
offers precise information on inter ones, in protecting and promoting consumer rights.
related topics under provisions Pp 218, #0103, Rs 200/US$25, ISBN: 81-87222-21-2
relating to consumer protection
and application of the Act etc. Numbers At What Cost?
This compendium is a pioneering work and This publication of CUTS raises
indispensable for day-to-day consultation providing the issue of fatalities and
the readers with comprehensive information on aspects morbidities in women as a
concerning the topic of consumer protection and would consequence of the sterilisation
be of much assistance in understanding as to when, operations performed during the
where and what level redressal of grievance can be family planning drive. This book
sought within the minimum time and without spending is dedicated to those motherless
much in litigation. It also examines how the Supreme children whose mothers were just
Court decisions have helped enhance Consumer numbers sacrificed at the altar of
Protection Act. family planning; to those women
Pp 112, #0710, Rs 100/US$15, ISBN: 978-81-8257-088-7 who were treated with scant respect and concern at the
sterilisation camps; and to those mothers who were
Is It Really Safe? poised between life and death due to sterilisation
In an attempt to inform and mishaps. It reveals many untold stories of tragic
educate the consumers about their happenings.
safety related rights, over the last Pp 82, #9809, Rs 100/US$30, ISBN: 81-87222-34-4
few years CUTS has written articles
on different safety aspects of How to Survive as A Consumer?
various issues, after conducting an This book is the first in the
information survey and some series of publications under the
fieldwork. The book is a serial entitled, ‘How to Survive as
compendium of articles written A Consumer’. It aims to serve many
from time to time, with the aim purposes: A to Z encyclopedia for
of increasing consumers’ awareness on safety aspects consumer redressal; law for the
of various products and services. It also contains layperson; invaluable reference for
valuable comments and suggestions received from students, business, government,
different consumer organisations. The book, written consumer courts, lawyers and
in a reader friendly style, also provides a synopsis of consumers on Consumer Protection
Indian rules and regulations on safety issues. The book Act (COPRA); and Training manual on COPRA.
is divided into five sections: product safety; services’ English: Pp316, #9808, Rs 100/US$12,
safety; health care safety; food safety; and transport ISBN: 81-87222-13-1
safety. Hindi: #0104, ISBN: 81-87222-41-7
Pp 163, #0406; Rs.100/US$15, ISBN: 81-8257-022-0
Consumer: What to do? How to do?
State of the Indian Consumer: This manual of CUTS (or survival kit for consumers)
Analyses of the Implementation has been written keeping this objective in mind so that
of the UN Guidelines for those who would like to work in this field can be better
Consumer Protection, 1985, in informed about consumerism, consumer rights,
India consumer laws and formation of an organisation so that
The UN Guidelines have they are able to carry the consumer revolution to every
outlined eight areas for consumer nook and corner of our country. This guide is a self-
protection, which have been teaching device for such people as well as those already
translated into eight consumer in the field of consumerism. Pp 128, 1989 by CUTS
rights for our discussion in this
CUTS IN ACTION newsletter published and composed by Consumer Unity & Trust Society (CUTS), D-217, Bhaskar Marg, Bani Park, Jaipur 302 016, India,
Phone: 91.141.228 2821, Fax: 91.141.228 2485 Email: cuts@cuts.org, Web site: www.cuts-international.org and printed by Jaipur Printers P. Ltd., Jaipur, India.
CUTS offices also at Calcutta, Chittorgarh and New Delhi (India); Lusaka (Zambia); Nairobi (Kenya); Hanoi (Vietnam); and London (UK).