ACTIVITIES AND PROBLEMS OF VOLUNTARY

CONSUMER ORGANISATIONS IN NAMAKKAL

DISTRICT
INTRODUCTION

The consmners have to be protected from the aggressive sale

promotion efforts of the trading community, There is a need for well

organized, non•

violent, strong, vigilant, widespread consumer organizations to promote

and

protect the consumers and prevent the malpractices of unscrupulous retailers,

quick profit seeking peddlers and unethical manufacturers. The enactment of

various legislations for consumers' protection did not bring the desired result.

Unfair business practices have increased in the market environment. The

government has developed legal protection, but the legal protection alone is not

sufficient to protect the interests of consumers. Due to this, the voluntary

consumer organisations are significant and worthwhile. Many VCOs are

working in different part of the country.

Till the mid seventies, these organizations were largely engaged in

the activities of consumer protection by writing articles, and holding

exhibitions to create awareness. To a marginal extent they were also

involved in making representations to the government for changes in

policies and laws. The eighties witnessed an upsurge in the number of

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consumer groups coming up across the country. Another milestone during

the early nineties was the development of state-level and national-level

federations. It began with Tamilnadu in l 990 and was followed by States

like Gujarat, Orisa, Andhra Pradesh and West Bengal. FEDCOT (Federation

of Consumer's Organisations of Tamilnadu and Pondicherry) is a

noteworthy organization among the state-level federations of VCOs in

Tamilnadu.

Protection to consumers can be obtained by the consumers

themselves through consumer associations. Attempts have been made to

reorganize consumer groups to resist price hikes and bring pressure on

business houses to improve quality.

VOLUNTARY CONSUMER ORGANISATIONS AT NAMAKKAL

DISTRICT

There are a large number of registered and unregistered voluntary

consumer organizations in Namakkal District for the promotion of consumer

welfare and to give a concrete shape to the consumer protection movement.

They are independent, non-profit and non-political service units. There

are

84 registered VCOs in four taluks of Namkkal districts namely Namakkal,

Tiruchengode, Paramathi Velur and Rasipuram. These VCOs have their own

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by-laws and are managed by its executive members. In these VCOs, there

are two types of members namely, Ordinary Members and Life Members.

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The ordinary members pay membership fees every year and the life

members pay membership fee once in their life time. These VCOs are

collecting Rs. l O as Entrance Fees and life membership fee varies from Rs.

100 to Rs. 500. They do not seek the assistance or accept patronage

from industries and trading houses in any fonn.

Most of the VCOs have below 100 members (eg. Sendamangalam

Payaneettalar Sangam - Sendamangalam Consumer Association) and only

a very few have more than 500 members (eg.Tamilnadu Payaneettalar

Sangam

- Namakkal District Consumer Protection Council). There is a governing

body in each VCOs. These VCOs are trying to settle the cases by

themselves, where they are not able to settle the case, then they send the

same to Namakkal District Consumer Disputes Redressal Forum. Apart from

solving consumers' cases and acting as consultant and mediator, they file

Public Interest Litigations also.

Some of the popular VCOs in Namakkal district are Tamilnadu

Consumer Association, Namakkal District Consumer Protection Council,

Sendarnangalam Consumer Association, Muthukkappatty Consumer

Protection Council, Kadandappatty Consumer Association, Tiruchengode

Circle Consumer Association, Tiruchengode Consumer Association, Velur

Consumer Association, Koonavelampatty Consumer Association and

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Rasipuram Taluk Consumer Protection Council.

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 In this chapter the researcher has made an attempt to identify the

activities and problems of VCOs in Namakkal District. Out of 300 complainant

respondents, those 32 who got membership in VCOs and 260 respondents who

are having knowledge about VCO are considered for analysis.

NATURE OF ACTIVITIES OF VCOs

The nature of activities of Voluntary Consumer Organisations is

classified into five categories. They are educating the consumers, pleading

consumer cases on behalf of them, conducting seminars, workshops and

meetings, making representation to the government and periodical visits and

inspections of fair price shops. An attempt was made to analyse the

respondent's knowledge of the nature of activities of VCOs by using

of Garret's ranking technique. For this purpose the respondents were asked

to rank the nature of activities of VCOs and are presented in the Table 6.1.

TABLE 6.1

Nature of Activities of
VCOs

Activities
s. Total Mean
Rank
No. Score Score

1. Educating the consumers 35475 61.3 I

2. Pleading cases on behalf of consumers 32925 56.9 II

3. Conducting seminar, workshop and meeting 29993 51.8 III

4. Making representation to Government 25213 43.5 IV

5. Periodical visits and inspections of fair price

21723 37.5 v
.
shops
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 It is seen from the Table 6.1 that consumer education was ranked first

by the selected sample respondents with the total score of 35475 and the

mean score is 61.3. Pleading cases on behalf of consumers was ranked

second with the total score of 32925 and the mean score is 56.9. Conducting

seminar, workshop, meeting and representation to government occupied the 3rd

111
and 4 ranks with a total score of 29993 and 25213 and the mean score of 51.8

and 43.5 respectively. Lastly periodical visits and inspections of fair price shops

was ranked 5th with a total score of21723 and a mean score of37.5.

CONSUMER AWARENESS PROGRAMMES OF VCOs

Voluntary consumer organizations are mainly constituted for the

promotion and protection of consumer interests. Consumers are to be

educated about what to buy, where to buy, when to buy, how to buy and how to

make the best use of what they buy in order to get the greatest value for their

money. Consumer awareness programmes enable a consumer to make purchase

intelligently and make him aware of his rights in the market place. Accordingly

the VCOs in Namakkal district give much importance to consumer

awareness programmes and educational programmes. Such programmes

include public meetings, demonstrations, seminars, short term training, long

term training and house visits. An analysis of the respondents' preference for

the consumer awareness programmes of the VCOs by using Garret's ranking

technique was made. For this purpose the respondents were

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asked to rank the awareness programmes of VCOs according to the list

given by the researcher. Table 6.2 reveals the consumer awareness

programmes of the VCOs and the ranking scores of the respondents.

TABLE 6.2

Consumer Awareness Programmes ofVCOs

S.No. Programmes Total Score Mean Score Rank

1. Public meetings 36269 62.6 I

2. Demonstrations I seminars 34914 60.3 II

3. Short term training 29366 50.7 III

A. Long term training 22652 39.1 IV

5. House visit 22128 38.2 v

It could be observed from the Table 6.2 that the public meetings

conducted by VCOs was ranked first by the selected sample respondents

with the total score of 36269 and the mean score of 62.6. Demonstrations

and seminars were ranked second with a total score of 34914 and the mean

score of 60 .3. Short term training and long term training occupied the 3rd and

4th ranks with the total score of 29366 and 22652 and the mean score of 50.7

and 39 .1 respectively. House visits secured the 5th rank with the total score

of 22128 and the mean score of 3 8.2.

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TYPES OF ASSISTANCE PROVIDED BY CONSUMER
ORGANISATIONS

Handling complaints is an important function of VCOs. Now-a-days

it is quite common that a large number of consumers approach the VCOs for

necessary guidance and assistance in order to proceed consumer cases. Some

of the VCOs have opened consultancy services for this purpose. The

important services offered by VCOs are: free legal aid, guidance for filing

and pleading cases, appearing before consumer court, financial assistance

and settlement of complaints by themselves. An analysis of the respondents'

preference for the various types of assistance provided by Consumer

Organisations by using Garrett's ranking technique has been made. For

this purpose, respondents were asked to rank the various types of

assistance of VCOs according to the list given by the researcher. The table

6.3 exhibits the VCOs assistance to the consumers and the ranking score of

the respondents.

TABLE 6.3
Types of Assistance Provided by Consumer Organisations to the
Consumers
I I
s. Total Mean I
Assistances Rank
No. Score Score

1. Free legal aid 33425 57.7 II

2. Guidance for filing and pleading 34420 59.4 1

3. Appearing before the consumer court 31776 54.9 Ill

for complainants

4. Financial Assistance 22136 38.2 v

Ttying to settle the cases by themselves 23572 40.7 IV
5. I I
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 Table 6.3 states that the guidance for filing and pleading on behalf of

the consumers was ranked first by the selected sample respondents with the

total score of 34420 and the mean score of 59.4. Free legal aid was ranked

second with a total score of33425 and a mean score of57.7. The appearance

of consumer organizations before the consumer court on behalf of the

consumers and settlement of cases by themselves were gi.ven 3rd an d 4th

ranks with a total score of 31776 and 23572 and a mean score of 54.9 and

40.7 respectively. Financial assistance secured the 5th rank with a total score

of 22136 and a mean score of 38.2.

ADMINISTRATIVE PROBLEMS FACED BY VCO

For this purpose the respondents were asked to rank the

administrative problems faced by VCO according to the list given by the

researcher. The table 6.4 shows the administrative problems faced by VCO

and the ranking scores of the respondents.

TABLE 6.4
Administrative Problems Faced by VCO

S.No. Problems Total Score Mean Score Rank

1. Absence of sufficient staff 31093 53.7 II

2. Insufficient accommodation 32808 56.7 I

3. Lack of furniture 30052 51.9 III

4. Lack of conveyance 26562 45.9 IV
5. Lack of corrununication facilities 24814 42.9 v

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 Table 6.4 shows that insutlicient accommodation was ranked first by the

selected sample respondents with the total score of 32808 and the mean score

of 56. 7. Absence of sufficient staff was ranked second with a total score of

31093 and a mean score of 53.7. Lack of furniture and lack of conveyance were

assigned 3rd and 4th ranks with a total score of 30052 and 26562 and a mean

score of 51.9 and 45.9 respectively. Lack of communication facilities secured

th k .l
the 5 ran wit 1 a total score of 24814 and a mean score of 42.9.

FINANCIAL PROBLEMS FACED BY VCO

For this purpose, the respondents were asked to rank the financial

problems faced by VCO according to the list given by the researcher. The

Table 6.5 highlights the financial problems faced by VCO and the ranking

scores of the respondents.

TABLE 6.5

Financial Problems Faced by

VCO
Problems Rank
s. Total Mean
No. Score Score
1. No grant from Government 33539 57.9 II

2. No financial encouragement to activist 33934 58.6 I

3. Expenses are met from the pockets of 31291 54.0 III

promoters / activists / members
4. Legal expenses cannot be collected 28492 49.2 IV
from the c01nplainant
5. High recurring expenses of 25347 43.8 v
1ne1nbership fee

Irregular payment of inembership fee 21097 36.4 VI

6.

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 Table 6.5 conveys that "no financial encouragement to activist" was

ranked first by the selected sample respondents with the total score of 33934

and the mean score of 58.6. "No grant from government'' was ranked second

with a total score of33539 and a mean score of57.9. The expenses met from

the pockets of promoters, activists and members was given third rank with a

total score of 31291 and a mean score of 54.0. Legal expenses cannot be

collected from complainant and high recurring expenses of membership fee

occupied 4th and 5th ranks with a total score of 28492 and 25347 and a mean

score of 49 .2 and 43 .8 respectively. Irregular payment of membership fee

got the 6th rank with a total score of21097 and a mean score of 36.4.

LEGAL AND TECHNICAL PROBLEMS FACED BY VCO

For this purpose, the respondents were asked to rank the legal and

technical problems faced by VCO according to the list given by the

researcher. Table 6.6 gives the legal and technical problems faced by VCO

and the ranking scores of the respondents.

TABLE 6.6

Legal and Technical Problems Faced by

VCO

Total Mean
S. No. Problems Rank
Score Score
1. Absence of well equipped laboratories 30582 52.8 II

2. Opposition from advocates 29153 50.4 III

3. Absence of dedicated professionals 28941 50.0 IV

4. Scarcity of human resources 31912 55.1 I

5. Inability to handle complicated complaints 28531 49.3 v

Lack of training for activists 24581 42.5 VI
6.

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 Table 6.6 reflects that the scarcity of human resources was ranked

first by the selected sample respondents with a the total score of 3 l 912

and a mean score of 55.1. Absence of well equipped laboratories was

ranked second with a total score of 30582 and a mean score of 52.8.

Opposition from advocates secured third rank with a total score of 29153

and a mean score of 50.4. Absence of dedicated professionals and

inability to handle compljcated complaints were given 4th and s" ranks

with a total score of 28941 and 28531 and a mean score of 50.0 and 49.3

respectively. Lack of training secured the 6th rank with a total score of

24581 and a mean score of 42.5.

PROBLEMS FACED BY VCO FROM THE GOVERNMENT AND

SEMI GOVERNMENT AGENCIES

For this purpose, the respondents were asked to rank the problems

faced by VCO from the government and semi-government agencies

according to the list given by the researcher. The table 6.7 depicts the

problems faced by VCO from the government and semi-government

agencies and the ranking scores of the respondents.

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 TABLE 6.7

Problems Faced by VCO from the Govt and Semi Govt

Agencies
,..._.__

s.
- -· - -
Total Mean Rank
No. Problems
Score Score

I. No allotment offunds I Facility 60.3 II

34934

2. No independent Dept I Ministry

35285 60.9 I
to handle consumer affairs
3. La.ck of receptivity to the
suggestions ofVCO 29004 50. l III

4. No recognition to the good service 28018 48.4 IV

5. No mechanism to distinguish
genuine 26482 45.7 v
vco
6. Bureaucratic antagonism 19977 34.5 VI

Table 6. 7 denotes that no independent Department and Ministry

to handle consumer affairs was ranked first by the selected sample

respondents with a total score of 35285 and a mean score of 60.9. No

allotment of funds and facility was assigned second rank with a total score

of 34934 and a mean score of 60.3. Lack of receptivity to the suggestions

of VCO was given third

rank with a total score of 29004 and a mean score of 50.1. No recognition to

the service and no mechanism to distinguish genuine VCO occupied 4th and

5th ranks with a total score of 28018 and 26482 and a mean score of 48.4 and

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45.7 respectively. Bureaucratic antagonism got the 6th rank with a total

score of 19977 and a mean score of 34.5.

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 PROBLEMS CREATED HY TIIE CONSUMERS

for this purpose, the respondents were asked to rank the other

problems created by the consumers according to the list given by the

researcher. The table mentions the problems created by the consumers and

the ranking scores of the respondents.

TABLE 6.8

Problems Created by the

Consumers

S.No. Total Mean

Problems Rank
Score Score

1. Indifference 25928 44.8 v

2. Ignorance of consumer rights 32845 56.7 II

3. Lack of endurance 33363 57.6 I

4. Lack of effort in securing evidence 32620 56.3 III

5. Absenting from appearance 27658 47.8 IV

6. Fear of opposite party 21286 36.8 VI

Table 6.8 states that lack of endurance was ranked first by the

selected sample respondents with a total score of 33363 and a mean score of

57 .6. The ignorance of consumer rights was given second rank with a total

score of 32845 and a mean score of 56.7. Lack of effort in securing evidence

was given third rank with a total score of 32620 and a mean score of 56.3.

Absenting from appearance before the consumer court on behalf of the

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consumers and indifference secured 411i and 5,11 ranks with a total score of
27658 2592
and 8 and a mean score of 47.8 and 44.8 respectively. fear of
1
opposite pai y occupied the h rank with a total score of 21286 and a mean
61

score of 36.8.

PROBLEMS CREATED BY THE BUSINESS COMMUNITY

For this purpose, the respondents were asked to rank the problems

created by the business communny according to the list given by the

researcher. The table divulges the problems created by the business

community and the ranking scores of the respondents.

TABLE 6.9

Problems Created by the Business

Community

s. Rank
Total Mean
No. Problems
Score Score
1. United effort to check the surge
33903 58.6 II
of consumer efforts
2. Misuse of strength to
34946 60.4 I
dilute govenunent efforts
3. Influencing police/ politicians
32690 56.5 III
and demoralising VCO
4. Influencing policy makers to 30791 53.2 IV
bypass consumer resistance

5. Frustrating the sustenance 26730 46.2 v

of achievements of VCO

Infiltration of VCO 23308 40.3 VI

6.
Floating their own VCO 19703 34.0 VII
7.
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 Table 6.9 furnishes that the misuse of strength to dilute governinent

efforts was ranked first by the selected sample respondents with a total score

of 34946 and a mean score of 60.4. United effort to check the surge of

consumer efforts was assigned second rank with a total score of 33903 and a

mean score of 58.6. Influencing police, politicians and demoralising VCO

was placed third with a total score of 32690 and a mean score of 56.5.

Influencing policy makers to bypass consumer resistance secured fourth

rank with a total score of 30791 and a mean score of 53 .2. Frustrating the

sustenance of achieve1nents of VCO and infiltration of VCO occupied s"

and 6th ranks with a total score of 26730 and 23308 and a mean score of 46.2

and 40.3 respectively. Floating their own VCO was given the 7th rank with a

total score of 19703 and a mean score of 34.0.

PROBLEMS FACED BY VCO FROM CONSUMER

COURT

For this purpose, the respondents were asked to rank the problems

faced by VCO from consumer court according to the list given by the

researcher. Table unveils the problems faced by VCO from consumer court

and the ranking scores of the respondents.

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 TABLE 6.10

Problems Faced by VCO from Consu1ner Court

s. Total Mean Rank

No. Problems Score Score -
-
I. CD RA' s resentment over the 53.5 I
30989
settlement of complaints by VCO itself

2. 29911 51.7 III

CORA discourages activists of VCO
3. Preferential treatment is given to 53.4 II
30901
advocates

4. Amount of compensation and cost IV

29690 51.3
allowed is inadequate

5. Take more than prescribed time for v

23838 41.2
disposal of cases

Table 6.10 envisages that the CDRA's resentment over the settlement

of complaints by VCO itself was ranked first by the selected sample

respondents with a .total score of 30989 and a mean score of 53.5. The

preferential treatment is given to advocates was placed second rank with a

total score of 30901 and a mean score of 53.4. CDRA discourages activists

of VCO and the amount of compensation and cost allowed is inadequate

111
were given 3rd and 4 ranks with a total score of 29911 and 29690 and a

mean score of 51.7 and 51.3 respectively. Taking more than prescribed time

for disposal of cases secured the 5th rank with a total score of 23838 and a

mean score of 41.2.

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