INTRODUCTION

(By Alok and Amit Dubey)

In the era of consumerism, consumer is the king. Companies have throat cut competition to
reach consumers to sell their products and services. The competition between the companies
benefits consumers. When we approach the market as a consumer, we expect value for
money, i.e., right quality, right quantity, right prices, information about the mode of use, etc.
but sometimes, consumers are cheated by the companies or they receive defective goods or
deficient services.

The Government understood the need to protect consumers from unscrupulous suppliers, and
several laws have been made for this purpose. We have the Indian Contract Act, the Sale of
Goods Act, the Dangerous Drugs Act, the Agricultural Produce (Grading and Marketing)
Act, the Indian Standards Institution (Certification Marks) Act, the Prevention of Food
Adulteration Act, the Standards of Weights and Measures Act, etc. which to some extent
protect consumer interests. However, these laws require the consumer to initiate action by
way of a civil suit involving lengthy legal process which is very expensive and time
consuming.

The Consumer Protection Act, 1986 was enacted to provide a simpler and quicker access to
redressal of consumer grievances. The Act, for the first time introduced the concept of
‘consumer’ and conferred express additional rights on him. It is interesting to note that the
Act doesn’t seek to protect every consumer within the literal meaning of the term. The
protection is meant for the person who fits in the definition of ‘consumer’ given by the Act.
We understand that the Consumer Protection Act provides means to protect consumers from
getting cheated or harassed by suppliers.

The question arises how a consumer will seek protection? The answer is the Act has
provided a mechanism whereby, consumers can file their complaints which will be
entertained by the Consumer Forums, with special powers, so that action can be taken against
erring suppliers and the possible compensation may be awarded to consumer for the
hardships he has undergone. No court fee is required to be paid to these forums and there is
no need to engage a lawyer to present the case.

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WHO IS A CONSUMER?

Section 2(d) of the Consumer Protection Act says that consumer means any person who—

(i)   buys any goods for a consideration which has been paid or promised or partly
paid and partly promised, or under any system of deferred payment, and includes any
user of such goods other than the person who buys such goods for consideration paid
or promised or partly paid or partly promised, or under any system of deferred
payment when such use is made with the approval of such person, but does not
include a person who obtains such goods for resale or for any commercial purpose; or

(ii)   hires or avails of any services for a consideration which has been paid or
promised or partly paid and partly promised, or under any system of deferred
payment, and includes any beneficiary of such services other than the person who
hires or avails of the services for consideration paid or promised, or partly paid and
partly promised, or under any system of deferred payment, when such services are
availed of with the approval of the first mentioned person;

Explanation — for the purposes of the sub-clause (i), “commercial purpose” does not
include use by a consumer of goods bought and used by him exclusively for the
purpose of earning his livelihood, by means of self-employment.

A consumer is any person, business, firm or governmental unit that chooses goods and
services, spends money on them, and uses these goods and services primarily to satisfy their
own wants. From birth, everyone is a consumer in one or the other way. A right consumer is
an individual who purchases articles consciously, ominously with due non negligence,
superiority, utility and also looking at its real monitory value, essentially and return value.

Today when very rapid and unprecedented changes are occurring at the global, national and
local markets, the business environment in India has undergone topsy-turvy changes.
Liberalization, privatization and globalization have affected the working of many
organizations all over the world. In this competitive world of business, organizations are now
becoming highly dynamic and sensitive towards consumer needs and the whole of consumer
delight.

The traditional ‘product first and customer next’ approach, is reversed to ‘customer first
product next’ approach. It means sellers market shifted to buyers market. This way the needs
of customers come in focus in an organization. In the modern content, “Consumer delight” is
considered to be the ultimate goal of any organization.

The idea of consumer protection owes its origin to the efforts of John F. Kennedy. 15 March
has a historic importance as it was on this day in 1962, when the Bill for Consumer Rights
was moved in the US Congress. During his speech President John F. Kennedy had remarked: 

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“If a consumer is offered inferior products, if prices are exorbitant, if drugs are unsafe or
worthless, if the consumer is unable to choose on an informed basis, then his dollar is wasted,
his health and safety may be threatened, and national interest suffers.” 

John F. Kennedy had equated the rights of the ordinary American consumer with national
interest. He gave the American consumer four basic rights: 

RIGHTS OF CUSTOMERS

1. The Right to Safety: To be protected against the marketing of goods which are hazardous
to health or life.

2. The Right to Choose: To be assured, wherever possible, access to a variety of products

and services at competitive prices and in those industries where competition is not workable
and Government regulation is substituted, an assurance of satisfactory quality and service at
fair prices.

3. The Right to Information: To be protected against fraudulent, deceitful or grossly

misleading information, advertising, labeling, or other practices, and to be given the facts s/he
needs to make an informed choice.

4. The Right to be Heard: - To be assured that consumer interests will receive full and
sympathetic consideration in the formulation of Government policy, and fair and expeditious
treatment in its administrative tribunals.

CONSUMERS EDUCATION

Kennedy recognised that consumers are the largest economic group in the country’s
economy, affecting and affected by almost every public and private economic decision. But
they were also the only important group who were not effectively organised, whose views
were not heard. 
Therefore, the Federal Government, by nature the highest spokesman for all people, had a
special obligation to the consumer’s needs. Thirteen years later President Gerald Ford felt
that the four rights constituted in Kennedy’s Bill of Rights were inadequate for a situation
where most consumers are not educated enough to make the right choices. So he added the
Right to Consumer Education, as an informed consumer cannot be exploited easily. 
While these rights served the interest of the American consumer well enough, they did not
cover the whole gamut, because a global consumer did need, apart from them, other well-
defined rights like basic needs, a healthy environment and redress. 

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The Consumers International (CI), former International Organisation of Consumer Unions
(IOCU), the umbrella body, for 240 organisations in over 100 countries, expanded the charter
of consumers rights contained in the US Bill to eight, which in a logical order reads: 

1. Basic
2. Needs
3. Safety
4. Information
5. Choice
6. Representation
7. Redress
8. Consumer
9. Education
10. Healthy Environment

This charter had a universal significance as it symbolised the aspirations of the poor and
disadvantaged. On this basis, the United Nations, in April 1985, adopted its Guidelines for
Consumer Protection

CONSUMERS AWARENESS

Consumer awareness is the mental state of a consumer showing his or her capability of
choosing and also justifying the values of the commodity for which he or she has paid.
Consumers form the largest economic group in any country. They are the pivots of all the
economic activities. But the very same consumers are the most unaware or voiceless group in
most of the countries of the world. The consumer of today has no power to order where he
can make his purchase at will. Instead, whenever he turns he sees only a seller’s market. The
seller’s attitude towards consumer is also of “take it or leave it.” The Indian consumer is well
aware that all is not well with its world today. Food adulteration is graving fast. He is never
sure that he receives correct weights and measures, so many and so ingenuous are the ways
used to cheat him. Prices keep rising and in times of shortage, profiteering takes place. As for
rations, they are also of low quality. The Government, Industry and the Consumers form the
three main partners in the venture of National Development. While the Government provides
the capital resource, industry utilizes the capital for producing goods and consumer procures
the goods paying money for their benefits and facilities. Thus, in layman’s understanding,
money gets converted to products which in turn get reconverted back to money for an
everlasting and constantly growing cycle operation, through the agencies concerned viz.
Government, Industry and Consumers. But this is not as simple as stated. In any cycle
operation, there can be many blocks. For example, bad counterfeit money is not accepted and
circulation gets limited to good money only. Similarly good products get circulated better
than bad ones. In other words, good quality products get better acceptance from the
consumers who are the buyers. So consulting consumers and satisfying their needs is
essential for developing quality services.

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CONSUMER’S CHANGING NEEDS AND PREFERENCES

Every individual is a consumer and he affects and is affected by almost every private and
public economic decision. Modern business is described as consumer oriented and business-
men study the needs and preferences of consumer to produce and supply goods according to
their changing demands. Yet the consumer finds himself Yet the consumer finds himself
subjected to all kinds of exploitation. Consumers are constantly afflicted by shortages of
essential items, adulterated products, manifold problems associated with a public utility
services and variety of deceptive practices adopted by our business. However, they do not
find voices rising in protest but continue to suffer in silence. Hence a heavy responsibility
rests on the government on one side and Industry on the other. The industry and business
circles should realize that consumer preferences are already appearing on the horizon in many
of the metropolitan areas and it may not be very far into the future before consumer bodies in
India gain the same level of strength as in other countries, to control the quality, reliability
and durability of the various products in the market. Before such development hits the
manufacturers of substandard goods affecting their existence, they should take timely action
to protect themselves. The first and foremost step for every manufacturer is to incorporate the
concept of quality right from the stage of research and development, carrying it forward into
design and engineering and all further stages till the product is finally tested and marketed.
As in the other countries, design concept should cover quality, round operation, easy
maintenance, safety of the user as well as the equipment, utility, convenience in handling,
economy appearance and good-looks. In other words, the design should essentially be
consumer oriented with a view to give full satisfaction.

CONSUMER PROBLEMS: THE INDIAN PERSPECTIVE

The consumers have been fighting for their rights. The passing of the Consumer Protection
Act, 1986 and the amendments to various other Acts of consumer interest shows that our
legislators and the Government are now aware of consumer rights and are willing to accept
the need for consumer protection. The concept of value for money must gain ground. Every
consumer must aim at getting the maximum benefit and for this he must be an alert buyer.

Consumer Guideline Society of India (CGSI) highlights the fraud of goods often
manufactured under a name which is similar to a famous brand. The packing of a well known
brand is copied to mislead a consumer. This is where the consumer must watch out and be
careful when buying. Also he should insist on a cash memo so that in case of complaint about
the product he can pursue it more easily. The market is flooded with shoddy goods which are
sold merely because we consumers do not insist on good quality. We fall an easy prey to
advertisements and sales promotion. Thus at the present time, one finds in the market a wide
variety of products of different makes and various models of same kind of products and an
intensive high pressure publicity for the products. A buyer is therefore confused and in many
a case gets misled by the advertisements and other gimmicks, into buying a product which
disillusions him after a brief period of use. Thus the vital link between the consumers and

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sellers in the market process and its purchasing and selling operations form the core of
discord between the buyers and sellers.

The position has become worse for the consumer due to the present concept of mass goods of
large scale producers. In the age of tremendous technological advancement, manufacturing
has become a sophisticated process and marketing articulated so much that the control of
individual consumers over the price, quality or product mix is virtually nil.

Consumer Rights

In order to maximize the consumer satisfaction, every business enterprise is constantly bound
to follow and practice the requirements set for consumer protection on national and
supranational levels. For this purpose the norms of business ethics have to be such that every
enterprise commits and complies with the international rights of consumers as endorsed by
the United Nation and embodied in the consumer protection laws in India, as in the form of
objects of consumer protection council. These consumer rights according to Sec. 6 of
Consumer Protection Act, 1986 are as follows:

1. The Right to Safety, that is, to be protected against products, production

processes and services which are hazardous to health or life and property.

2. The Right to be Informed, that is to be given adequate facts about the

quality, quantity and price of goods so as to make an informed choice or
decision and act wisely against any unfair trade practices.

3. The Right to Choose, that is, to have access to a variety of products and
services at competitive prices and in the case of monopolies; to have an
assurance of satisfactory quality and service at fair price in a manner that the
unrestrained right of a minority to choose will not mean denial of a fair share
to majority

4. The Right to be Heard, that it, to be represented for consumer interests in

the formulation and execution of policies for development and production of
goods and services.

5. The Right to Redress, that is, to have a fair settlement of just claims and
receive compensation for misrepresentation or shoddy goods or services.

6. The Right to Consumer Education, that is, to acquire knowledge and skills
to be an informed consumer and to take action on the matters concerning
consumer decisions.

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 7. The Right to Healthy Environment, that is, to have a physical –
environmental conducive to good quality of life and have protection against
environmental problems over which individual consumer has no control (taken
care by environmental protection law).

EDUCATION AND AWARENESS OF CONSUMERS

Consumer education means to educate the consumers as to what where, when, how and
how much to buy and how to use what they have bought.

Protection and promotion of consumer's rights and interests is a vital function of the
Government of any economy. It is basically a social and political necessity and is essential
for all round progress of the country. In rapidly changing business environment and emerging
global markets, expectations of the people of the country for better services, quality goods,
availability of choices and value for money has been continuously rising. Accordingly, both
public and private sectors are undertaking several policy initiatives, schemes and incentives
to promote consumers' welfare in the country. They are making all efforts to ensure that
consumers are provided with every relevant informations in order to avoid any kind of
exploitation and given a rational choice in selection of products and services from the market.

Consumers need to be made aware and educated about their existing rights, which are:

 Right to be protected against the marketing of goods and services, which are
hazardous to life and property;
 Right to be informed about the quality, quantity, potency, purity, standard and price of
goods so as to protect the consumer against unfair trade practices;
 Right to be assured, wherever possible of access to variety of goods and services at
 competitive price;
 Right to be represented in various forums formed to consider the consumer's welfare;
 Right to seek redressal against unfair trade practices or unscrupulous exploitation of
consumers; and
 Right to acquire the knowledge and skill to be an informed consumer throughout life.
That is, there is need to generate consumer awareness on large scale about basic
aspects such as maximum retail price (MRP), Hallmarking of gold jewellery, Indian
Standard Institute (ISI) mark on products and expiry dates.

Enactment of the Consumer Protection Act, 1986 marked one of the most important
milestones in the consumer movement in the country. It is one of the benevolent social
legislation intended to protect the large body of consumers from exploitation. The Act has
come as a panacea for consumers all over the country and has assumed the shape of
practically the most important legislation in the country during the last few years. It has

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become the vehicle for enabling people to secure speedy and in-expensive redressal of their
grievances. With the enactment of this law, consumers now feel that they are in a position to
declare sellers beware whereas previously the consumers were at the receiving end and
generally told buyers beware.

The provisions of this Act cover 'Products' as well as ‘Services'. The products are those
which are manufactured or produced and sold to consumers through wholesalers and
retailers. The services are of the nature of transport, telephones, electricity, constructions,
banking, insurance, medical treatment, etc. The services by and large include those provided
by professionals such as Doctors, Engineers, Architects, Lawyers, etc. The Objects of the Act
are:

 Protection of Interests of Consumers

 Protection of Rights of Consumers
 Establishment of Consumer Protection Councils
 Establishment of Consumer Dispute Redressal Agencies

This Act was amended in 2002 in the form of Consumer Protection (Amendment) Act, 2002.
Some of the important amendments made by it include:

 Creation of benches of the National Commission and State commissions and holding
of circuit benches
 Prescribing time-frame for admission of complaint, issue of notices and disposal of
complaint
 Recovery of compensation amount ordered by the redressal agency through certificate
case in the same manner as arrears of land revenue
 Provision for issue of interim orders by redressal agencies
 Establishment of Consumer Protection Council at District level
 Revision of pecuniary jurisdiction in respect of redressal agencies at district levels
 Inclusion of sal of spurious goods/services as unfair trade practices

In exercise of the powers conferred by the Consumer Protection Act, the Central Government
has formulated the Consumer Protection Rules, 1987. Similarly, the National Consumer
Disputes Redressal Commission with the previous approval of the Central Government has
formulated the Consumer Protection Regulations, 2005. These have been framed to give
effect to the provisions of the Act, make them more explicit as also to further simplify the
procedures with a view to serving better the interests of the aggrieved consumers.

At the Central level, the Department of Consumer Affairs has been set up under the Ministry
of Consumer Affairs, Food and Public Distribution to protect the rights of consumers,
promote standards of goods and services as well as for redressal of consumer grievances.

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It has been undertaking 'National Action Plan for Consumer Awareness and Redressal and
Enforcement of Consumer Protection Act, 1986' for consumers' protection and creating
awareness among them.

It is operating Consumer Welfare Fund which aims to provide financial assistance for
promoting and protecting the welfare of the consumers as well as strengthening the voluntary
consumer movement in the country.

The Centre for Consumer Studies (CCS) at the Indian Institute of Public Administration
(IIPA) has been set up to facilitate in-depth action research in the area of consumer protection
and education.

As a part of the initiative of the Fund, the 'Scheme on Promoting Involvement of Research
Institutions/ Universities and Colleges in Consumer Protection and Consumer Welfare' is
being financed and administered by CCS, IIPA. While, at the State level, initiatives with
respect to consumer's welfare by promoting awareness and education among them are
handled by Departments of Consumer Affairs; Departments of Food, Civil Supplies and
Consumer Welfare; etc. which are located in various States and Union Territories (UTs) of
the country.

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 BUREAU OF INDIAN STANDARDS (BIS)

(By Aditya and Devpriya)

I. Introduction

The Bureau of Indian Standards (BIS) is the national standards body of India working under
the aegis of Ministry of Consumer Affairs, Food & Public Distribution, Government of India.
The organization was erstwhile known as the Indian Standards Institution which was founded
in the year 1947.

Bureau of Indian Standards (BIS) is a national standards body engaged in the preparation and
implementation of standards, operation of certification schemes both for products and
systems, organisation and management of testing laboratories, creating consumer awareness
and maintaining close liaison with international standards bodies.

As a corporate body, it has 25 members drawn from national and state politics, industry,
scientific and research institutions, and consumer organizations. Its headquarters are in New
Delhi, with regional offices in Kolkata, Chennai, Mumbai, Chandigarh and Delhi, and 19
branch offices. It also works as WTO-TBT enquiry point for India

II. General

Bureau of Indian Standards (BIS) came into existence, through an Act of Parliament on 1
April 1987, with a broadened scope and more powers taking over the staff, assets, liabilities
and functions of erstwhile Indian Standards Institution (ISI) with following objectives.

 Harmonious development of activities of standardization, marking and quality

certification
 To provide new thrust to standardization and quality control
 To evolve a national strategy for according recognition to standards and integrating
them with growth and development of Industrial production and exports.

BIS is involved in multifarious activities like Standards Formulation, Certification,

Product/Schemes. Laboratory Services, International Activities, Consumer - related
Activities, Promotional Activities, Training Services, Information services, Sale of Standards
& Publications

III. Purpose

During the pre independence period, standardization activity was sporadic and confined
mainly to a few Government purchasing organization. However, immediately after
independence, economic development through coordinated utilization of resources was called
for and the government recognized the …… role for standardization in gearing industry to
competitive efficiency and quality production. The Indian Standards Institution (ISI) was,
therefore, set up in 1947 as a registered society, under a Government of India resolution.

The Indian Standards Institution gave the nation the standards it needed for nationalization,
orderly industrial and commercial growth, quality production and competitive efficiency.

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However, in 1986 the government recognized the need for streagthening this National
Standards Body due to fast changing socio-economic scenario and according it a statutory
status. Thus came the Bureau of Indian Standards Act 1986 and on 1 April 1987, newly
formed BIS took over staff assets, liabilities and functions of erstwhile ISI. Through this
change over, the Government envisaged building of the climate of quality culture and
conciousness and greater participation of consumers in formulation and implementation of
National Standards.

IV. Objectives

 Harmonious development of standardization, marking and quality certification

 To provide new thrust to standardization and quality control
 To evolve a national strategy for according recognition to standards and integrating
them with growth and development of production and exports

V. Activities

The activities of BIS can be broadly grouped under the following heads:

a) Standards Formulation
b) Certification: Product/Systems
c) Laboratory Services
d) Sales of Indian Standards/ other publications
e) International Activities
f) Consumer Related Activities
g) Promotional Activities
h) Training Services
i) Information Services
j) Financial, Resources – Mobilization and Utilization etc

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INTERNATIONAL ORGANIZATION FOR STANDARDS (ISO)

ISO (International Organization for Standardization) is the world's largest developer and
publisher of International Standards. ISO is a network of the national standards institutes
of 163 countries, one member per country, with a Central Secretariat in Geneva,
Switzerland, that coordinates the system. ISO is a non-governmental organization that
forms a bridge between the public and private sectors. On the one hand, many of its
member institutes are part of the governmental structure of their countries, or are
mandated by their government.On the other hand, other members have their roots
uniquely in the private sector, having been set up by national partnerships of industry
associations.

Therefore, ISO enables a consensus to be reached on solutions that meet both the
requirements of business and the broader needs of society.

The organization's logos in two of its official languages, English and French, include the
word ISO, and it is usually referred to by this short-form name. ISO is not an acronym or
initialism for the organization's full name in either official language. Rather, the
organization adopted ISO based on the Greek word isos , meaning equal. Recognizing
that the organization’s initials would be different in different languages, the organization's
founders chose ISO as the universal short form of its name. This, in itself, reflects the aim
of the organization: to equalize and standardize across cultures.

I. History

Standards are important in international trade because incongruent standards can be barriers
to trade, giving some organizations advantages in certain areas of the world. Standards
provide clear identifiable references that are recognized internationally and encourage fair
competition in free-market economies. Standards facilitate trade through enhanced product
quality and reliability, greater interoperability and compatibility, greater ease of maintenance
and reduced costs. ISO covers a wide variety of standards with the exception of electrical and
electronic engineering standards covered by the International Electrotechnical Commission
(IEC), telecommunication standards covered by the International Telegraph Union (ITU) and
information technology covered by JTC 1 (a joint committee between ISO and IEC).

The organization which today is known as ISO began in 1926 as the International Federation
of the National Standardizing Associations (ISA). This organization focused heavily on
mechanical engineering. It was disbanded in 1942 during the second World War but was re-
organized under thecurrent name, ISO, in 1946.

ISO is a voluntary organization whose members are recognized standard authorities, each one
representing one country. The bulk of the work of ISO is done by the 2700 technical
committees, subcommittees and working groups. Each committee and subcommittee is

12
headed by a Secretariat from one of the member organizations. The American National
Standards Institute (ANSI) is the United States representative to ISO. The ANSI ASC Z-
1/ASQ Standards Group coordinates the United States representation in the ISO Technical
Committees 176 and 207 which are concerned with the ISO 9000 and ISO 14000 standards
respectively.

II. Objectives:

ISO standards:

 make the development, manufacturing and supply of products and services more
efficient, safer and cleaner
 facilitate trade between countries and make it fairer
 provide governments with a technical base for health, safety and environmental
legislation, and conformity assessment
 share technological advances and good management practice
 disseminate innovation
 safeguard consumers, and users in general, of products and services
 make life simpler by providing solutions to common problems

III. ISO Standards

Sector Standard or series of standards

Quality Management ISO 9001:2008

Environmental Management ISO 14001:2004

Automotive ISO/TS 16949:2002

Customer satisfaction ISO 10002, ISO/TS 10004:2010

Education IWA 2:2007

Energy ISO 50001, TC 242

Food safety ISO 22000:2005

Information security ISO/IEC 27001:2005

Health care IWA 1:2005

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Local government IWA 4:2009

Medical devices ISO 13485:2003

Petroleum and gas ISO/TS 29001:2007

Risk ISO 31000

Ship recycling ISO 30000:2009

Supply chain security ISO 28000:2007

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INTERNATIONAL TELECOMMUNICATION UNION (ITU)
ITU is the leading United Nations agency for information and communication technology
issues, and the global focal point for governments and the private sector in developing
networks and services. For nearly 145 years, ITU has coordinated the shared global use of the
radio spectrum, promoted international cooperation in assigning satellite orbits, worked to
improve telecommunication infrastructure in the developing world, established the worldwide
standards that foster seamless interconnection of a vast range of communications systems and
addressed the global challenges of our times, such as mitigating climate change and
strengthening cyber security.
ITU also organizes worldwide and regional exhibitions and forums, such as ITU TELECOM
WORLD, bringing together the most influential representatives of government and the
telecommunications and ICT industry to exchange ideas, knowledge and technology for the
benefit of the global community, and in particular the developing world.
From broadband Internet to latest-generation wireless technologies, from aeronautical and
maritime navigation to radio astronomy and satellite-based meteorology, from convergence
in fixed-mobile phone, Internet access, data, voice and TV broadcasting to next-generation
networks, ITU is committed to connecting the world.
ITU is based in Geneva, Switzerland, and its membership includes 191 Member States and
more than 700 Sector Members and Associates.

 The ITU's Mission

The ITU's mission is to enable the growth and sustained development of telecommunications
and information networks, and to facilitate universal access to the emerging information
society and global economy. The ITU assists in mobilizing the technical, financial, and
human resources required by such development.

A major priority of the ITU is bridging the so-called "digital divide" by building adequate
Created by HPand safe information and communication infrastructure and developing
confidence in the use of cyberspace through enhanced online security.

The ITU also concentrates on strengthening emergency communications for disaster

prevention and mitigation, especially in less developed regions.

 ITU Sectors

The ITU comprises four sectors, each managing a different aspect of the matters handled by
the Union:

1. Radio communication (ITU-R)

Managing the international radio-frequency spectrum and satellite orbit resources is at the
heart of the work of the ITU Radiocommunication Sector (ITU-R).

2. Standardization (ITU-T)

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ITU's standards-making efforts are its best-known — and oldest — activity; known prior to
1992 as the International Telephone and Telegraph Consultative Committee or CCITT

3. Development (ITU-D)

Established to help spread equitable, sustainable and affordable access to information and
communication technologies (ICT).

 ITU Telecom
ITU TELECOM brings htogether the top names from across the ICT industry as well as
ministers and regulators and many more for a major exhibition, a high-level forum and a host
of other

A permanent General Secretariat, headed by the Secretary General, manages the day-to-day
work of the Union and its sectors.

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 PRODUCT LIABILITY LAW IN INDIA

(By Akshat and Divya)

Liability For Manufacturing Or Distributing A Defective Product In India

In India, Product liability law, also called “products liability”, governs the liability of
manufacturers, wholesalers, distributors, and vendors for injury to a person or property
caused by dangerous or defective products. The goal of product liability laws is to help
protect consumers from dangerous or defective products, while holding manufacturers,
distributors, and retailers responsible for putting into the market place products that they
knew or should have known were dangerous or defective.

Civil Product liability in India is, essentially, governed by

a) The Consumer Protection Act, 1986

b) The Sales of Goods Act, 1930

c) The Monopolies and Restrictive Trade Practices Act, 1969 (hereinafter referred to as the
“MRTP Act”)

d) The law of Torts.

e) Special statues pertaining to specific goods

The laws relating to product liability, in India, have been constantly evolving, by way of
judicial interpretations and amendments, to become one of the most important socio-
economic legislations for the protection of consumers. The legislation, in respect of product
liability in India, though was enacted to protect the interest of consumers but the same was,
earlier, construed narrowly, thereby frustrating the object sought to be achieved. The trend,
however, has changed in the recent times with the Courts adopting a pro-consumer approach.
The Courts, in India, have now started awarding compensation and damages which are more
punitive than compensatory in nature.

In Wheels World vs. Pradeep Kumar Khurana MANU/CF/0280/2002 the complainant, a

doctor by profession, complained to the respondent about deficiency in service in not
repairing, free of charge, a technical fault, which occurred during warranty period, in his new
Montana car and then not delivering the same for a period of 4 years. A sum of Rs. 30, 000/-
with interest @ 18% per annum from 2/7/1988 to 7/5/1992, was awarded as compensation, in
favour of the complainant for his suffering, both professionally and otherwise, on account of
non availability of car for a period of 4 years. Further interest, at the same rate for the same
period, was also awarded on an amount of Rs. 82, 000/-, being the price of the car as well as
an amount of Rs. 55, 00/- towards costs and, last but not the least, an amount of Rs. 50, 000/-,
which was deposited by the Respondent on account of stay of imprisonment, was also
awarded to the petitioner.

The product liability law, in India, apart from the civil liability, also imposes criminal
liability in case of non-compliance with the provisions of each of the below mentioned Acts.
The said Acts are in addition to and not in derogation of any other laws in force, which
17
implies that an action imposing penal liability can be simultaneously initiated along with a
claim under civil law. Some of these are special Acts pertaining to sale of specific goods such
as food, drugs, cosmetics etc.. The provisions of these enactments are preventive in form ,
though the relief envisaged is an action for breach in civil or criminal court.

 The Foods Adulteration Act, 1954

 The Food Safety and Standards Act, 2006

 The Drug & Cosmetics Act, 1940

 The Indian Penal Code, 1860

 The Standards of Weights and Measures Act, 1956

The Agricultural Produce (Grading and Marking) Act, 1937 for marking and grading of
commodities like vegetables, butter, etc.

 The Indian Standards Institution (Certification Marks) Act , 1952 to formulate a

number of standards for different products by ISI

 The Bureau of Indian Standards Act , 1986

Each of the aforesaid Acts provides for imposition of fine and/or imprisonment in case of
supply of defective products or adulterated consumables.

The Food Safety and Standards Act, 2006 is the most recent legislation which
comprehensively deals with food and safety standards which are to be complied with by
manufacturers and producers, non-compliance of which imposes a liability, upon defaulters,
of fine, extending upto Rs. Ten Lakhs and/or imprisonment.

The provisions of Indian Penal Code (IPC), on the other hand, in respect of product liability,
are attracted when the element of cheating and fraud can be attributed to such defects.

For example, in the case of Smt. Uma Deepak v. Maruti Udyog Ltd Ors (2003)
CPJ 90(MRTP) the Complainant alleged that the car sold by the opposite party was not only
accidental but the price, for the same, was also overcharged. The Court, in response to the
allegations made by the complainant, directed arrest of the Directors as well as the manager
of the dealers/agents who sold the said defective car to the complainant and remanded them
to judicial custody. Subsequent thereto, the said officers of the opposite party were released
on bail and were directed to replace the disputed car with a new car.

Provisions of IPC are also attracted to provide punishment to offenders for false weights and
measures , adulteration of goods ( food, drugs etc -6 months imprisonment, fine of 1000
rupees or both), and false property marks ( one year imprisonment, fine or both). The period
of limitation as per Section 468 of the Criminal Procedure Code is 6 months if offence is
punishable with fine only , and one year if offence is punishable with upto one year
imprisonment and three years if offence is punishable with imprisonment of above one year
and upto three years.

18
The provisions of the Standards of Weights and Measures Act, 1976 are attracted in case of
any false packaging, weight or measure which does not conform to the standards established
by or under the said Act and breaches the mandatory declaratory requirements on a package.
If any mandatory declaration is found missing on the package a fine of upto 2000 rupees shall
be levied as per Rule 39 of the Standards of weights and measures packaged commodity
rules.

The Drugs and Cosmetic Act, 1940 also provides for criminal liability for manufacturers and
producers of medicinal products or cosmetics etc, which do not adhere to the prescribed
standards.

19
PRESENT STATE OF CURRENT FOOD SAFETY REGULATIONS IN
INDIA WITH SPECIAL REFERENCE TO PROCESSED FOOD
SECTOR

India has plethora of laws regulating the food safety and other activities of food industry.
Most of these laws restrict the functioning of trade industry in a competitive trade without
attaching much importance to food safety standards. There is a multiplicity of agencies both
for making as well as implementing the food safety standards which has resulted into a very
lose system which is not at all coherent, integrated. It is very important for the decision-
makers in India to recognise that presence of multiplicity of food laws in the country is not
going to serve the purpose particularly in the international trade. In order to give a boost to
the food industry the need of the hour is to harmonise not only the various food laws but also
the agencies. According to apex industrial bodies there should be only one national food
safety code, which should cover all aspects of Indian food safety under a unified system.

Recently, in the budget speech of Finance Minister, he had called for an effort to simplify
these laws and bring them under one umbrella organisation. Accordingly, a group of
Ministers has been set up to deliberate on this issue but nobody knows how long it is going to
take and when this new national food safety code will see the light of the day.

What is more important today is to have a comprehensive, integrated food law which can not
only take care of ensuring public health, safety but also specify quality norms for meeting the
globally recognised standards. It may be kept in mind that whenever a country allows other
country for exports, particularly, any foodstuff, they very closely look at the domestic
standards of that country. Unfortunately, we do not have domestic standards in place, which
also results in imports of third grade products from other countries. If enabling environment
for rapid growth of food processing industry is to be created then the major challenges before
the food industry today are availability of choices, threats of imports as a result of
globalisation, rapid advances in science and technology, changing consumer preferences and
concerns which can be addressed by a legal framework which would need simplification and
amendments across Central, State and local legislation. The plethora of laws and multiple
controls have led to a system, which is over-regulated and under administered. It neither
assures safety nor quality.

Moreover, the documentation part is completely neglected. An urgent need for re-focussing
our existing food laws and aligning them with the internationally prescribed for food trade
widely followed in the world has been greatly felt. It has been now recognised that this would
greatly enhance innovation and would also protect adequately the consumer.

The following are the Indian regulatory agencies dealing with the food safety issues in the
domestic markets presently.

1. Prevention of Food Adulteration (PFA) Act, 1954

20
The most important regulation for ensuring food safety and quality in India continues to be
out-dated – PFA, 1954. The objective of this Act is to formulate and monitor the standards of
quality and purity. The provision of the Act are mandatory and contravention of the rules can
theoretically lead to both fine and imprisonment. But this happens rarely in practice. The
Central Committee of Food Safety (CCFS) and Directorate General of Health Services,
Ministry of Health and Family Welfare are the primary policy making bodies that advise
Central and State Governments regarding the administration of the Act and developed
standards relating to the Act. The State Governments and local bodies in Corporation and
Municipalities implement the provisions of the Act. It is the responsibility of the Ministry of
Health and Family Welfare to liase with the national and international food quality control
organisation, namely the Bureau of Indian Standards (BIS) which is associated with the
certification of the processed food articles, the Directorate of Marketing and Inspection
(DMI), the Ministry of Food Processing Industries as well as the Codex Alimentarius
Commission. It also includes in its role the creation of consumer awareness, which is hardly
evident.
The PFA lays emphasis on the prevention of adulteration of foods and is not comprehensive
enough to deal with the contamination of food through the animal feed and the food chain.
The apex industrial bodies like Confederation of Indian Industries (CII), Federation of Indian
Chambers of Commerce and Industry (FICCI) and Central Food Technological Research
Institute (CIFTRI) have very strongly called for a complete overhaul of PFA in order to
harmonise it with the international standards set by the Codex Alimentarius Commission.

Obviously, this demand from the food industry is to protect the health of the people but at the
same time there is a concern that food safety standards by other countries are being used
against India as non-tariff barriers to stop/restrict exports from India to the developed
countries. If we take a cursory look at the quality of food commodity being sold in the
domestic market and PFA functionaries, who are more than 6000 Food Inspectors, the
domestic market challenges towards food safety 24 standards come to the fore. These typical
Food Inspectors very often have no scientific background, but orientation is towards legal
technicalities. Any re-orientation of food laws may not have any incentive to perform their
duties diligently and honestly. In theory, producers or traders who supply
adulterated/contaminated produce can be taken to court and fined or imprisoned, if found
guilty. But there are some problems in implementing the Act. It is a very long way from the
central food laboratory to the court room and the whole Act is unable to guarantee food safety
at one hand and it also does not restrict import of unhygienic, expired, badly labelled
products from other countries. It is very important that the sampling procedure is standardised
and it is transparent which does not happen in PFA. The procedure for formulation of
standards should be participatory and all stake-holders should be consulted. With regard to
certification the emphasis should be on process control rather than the final product
inspection. The procedures for inspection and drawing samples should be laid down in
accordance with the standards prescribed and should be in tune with the international
practice.

2. Export Quality Control Inspection Act, 1963

Export Inspection Council (EIC), Ministry of Commerce is responsible for implementation of

this Act under which the exportable commodities are notified for compulsory pre-shipment
inspection. As regards export of egg powder, Government has framed rules called the
“Export of Egg Products (Quality Control, Inspection & Monitoring) Rules, 1997 that are

21
applicable for the export of egg powders to EU. It may be noted that these rules are basically
a replica of EU Regulations. Under these rules quality assurance and monitoring system
manual has been made under which Export Inspection Agencies (EIA’s) have been
designated as competent authorities for monitoring the egg products which are made for
export purposes to EU. Presently, the egg powder plants in India are regulated through these
rules and the egg powder is also exported according to these rules. The complete booklet
published contains different sections which give details of the executive instructions and
specifies as under:

“Prohibits the export of egg powders by a unit in the course of international trade which
includes EU and United States unless it confirms to standards applicable to it and is
accompanied by a certificate stating that such unit is approved and monitored by Export
Inspection Agency establishment u/s 7(1) of the Export (Quality Control & Inspection) Act,
1963 (22 of 1963)”. All the conditions have been published in the Gazette of India Extra-
ordinary Part II Section 3, Sub-Section (ii) dated 23rd August, 1997. This booklet is a
complete document, which is a replica of EU and United States standards for the same
products and following has Chapters:

 Chapter I : General conditions of Approval and Operations

 Chapter II : Special conditions for the approval of establishment
 Chapter III: Hygiene requirements relating to the premises, equipments and staff of
establishment
 Chapter IV : Requirements concerning eggs intended for manufacture of egg products
 Chapter V : Special hygiene requirements for the manufacture of egg products
 Chapter VI : Analytical specifications
 Chapter VII : Health Control and Supervision of Production
 Chapter VIII : Packaging of egg products
 Chapter IX : Storage
 Chapter X : Transport
 Chapter XI : Marking of Egg Products

It also has Annexure I and II, which talks of residues, sampling strategy, frequency etc. In
fact, Government of India has submitted a Residue Monitoring Plan to EU which otherwise is
also a necessity to keep the name of India listed in the EU list of importers. This Residue
Monitoring Plan gives details of various residues along with surveillance system to monitor
the residues, name of approved labs, procedures for obtaining test services, nomination of
National Reference Lab, responsibility of the nominated lab, evaluation of the report by
National Reference Lab, description of pesticide residues limit, residue limits of
pharmacological substances etc. 25 Government of India through Ministry of Commerce and
Export Inspection Council had applied for equivalency for these standards with the EU
Commission and it is over three years now but so far equivalency has not been granted and
Indian plants have not been notified by the EU Commission pertaining to egg powder
products. Similarly, Government of India through Export Inspection Council are also in the
process of notifying order on fresh poultry meat and poultry meat products which also
specifies and lays down draft rules for export of fresh poultry meat and poultry meat products
under Quality Control, Inspection and Monitoring Rules, 2002 which will be applicable for
the inspection and monitoring of fresh poultry meat and poultry meat products prior to
export. In this proposal fresh poultry meat and poultry meat products including meat which is
vacuum wrapped or wrapped in controlled atmosphere, which has not undergone any

22
preserving process other than chilling or freezing; poultry meat products which are further
processed by means of drawing, curing, smoking, cooking, frying, seasoning, flavouring or
by any other method of processing. It is understood that preliminary notification of these
draft standards has been issued and final notification is expected anytime. These standards
also are a replica of EU and USDA standards and have the following annexures:

 Annexure I : General conditions for the approval of establishments

 Annexure II : Special conditions for the approval of poultry slaughter houses.
 Annexure III : Special conditions for the approval of cold-stores.
 Annexure IV : Hygiene of staff and premises and equipment in the establishment
 Annexure V : Pre-slaughter health inspection
 Annexure VI : Hygiene requirement for slaughtering and handling of poultry meat
 Annexure VII : Post-mortem Health inspection
 Annexure VIII : Decision of the Official veterinarian at the post-mortem inspection
 Annexure IX : Provisions concerning meat intended for cutting
 Annexure X : Health monitoring of cut poultry meat and poultry stored meat
 Annexure XI : Health marking
 Annexure XII : Storage
 Annexure XIII: Wrapping and Packaging of poultry meat
 Annexure XIV : Transport
 Annexure XV : Professional qualifications of Plant Technologists
 Annexure XVI : Description of poultry from where fresh meat is obtained
 Annexure XVII : Model Health Attestation
 Annexure XVIII : Model Health Certificate for fresh poultry meat

It may not be out of place to mention that there is one more exercise going on to frame
standards for the export of table eggs and for that purpose USDA Regulations of FSIS has
been taken as a base but this matter is still under process. For some latest updates on
Notifications reference to Annexure IV may please be made.

3. Meat Products Control Order, 1973

These is one more agency which talks of controlling meat food products which falls under
Ministry of Agriculture and has been issued in the Extra-Ordinary Gazette Part II Section 3
Sub-Section (ii) of dated 28th March, 1973. The name of this order is Meat Products Control
Order, 1973, which came into force from 15/7/75. This order also covers some part of meat
including poultry meat. The licensing authority under this order is the Agriculture Marketing
Advisor to the Government of India. Similarly, the Bureau of Indian 26 Standards (BIS) who
are completely voluntary has also formulated certain standards, which again remains a half-
hearted approach for the standardisation of the food safety rules. For other food products
there are orders like Milk and Milk products Order, 1992, Solvent Extracted Oil, De-Oiled
Meal and Edible Flour Control Order, Vegetable Oil Products control Order, Compulsory
Compliance Legislation and Food Products Order.

4. Food Testing Labs

There are 72 food labs under the administrative control of Central and State Governments as
well as local bodies.

23
Central Food Labs : Four Central Food Labs have been established under PFA Act to serve as
Appellate Labs. Here samples of food articles taken by Food Inspectors from State and Local
levels are tested. Two of these labs, the Food Research and Standardisation Labs, Ghaziabad
and Central Food Lab, Kolkata are under the administrative control of the Directorate
General of Health Services. The other two, Central Food Lab (CFL), Pune and Food Central
Lab, Mysore are under the administrative control of Government of Maharashtra and Council
of Scientific and Industrial Research. In addition to this, there are 84 State Food Labs and
one-third are under the administrative control of local bodies. Some labs under EIC and BIS
are also operating. Presently, there is no national apex lab that can offer entire range of
testing services and results of which cannot be challenged by the labs and the buyers in
developed countries. Moreover, these labs also lack in infrastructure except the CFTRI lab at
Mysore. Insufficient capacity – inadequate training: Another important lacunae in the food
quality assurance system, if we can call it a system, is lack of proper training facilities in the
area of food safety and testing despite the fact that we have a large human resource available
with us. The training given to Food Inspectors is minimal, highly inadequate and it is not
relevant in the present scenario of globalisation. Out of the 150 Universities and colleges
teaching agriculture and health, only few offer courses related to food safety and quality.
Even their food safety and quality forms a very small component of training provided as a
part of the nutrition course in home science or food technology department. The only
mentionable source of training in food quality control is provided by the organisations like
CFTRI, Mysore and CFL, Kolkata etc.

24
 VOLUNTARY STANDARDS
( By Amit Sharma)

1. Bureau of Indian Standards:

As mentioned earlier BIS developed standards for most processed foods that are domestically
traded in India. In general these standards cover raw material permitted and their quality
parameters, hygiene conditions under which the products must be manufactured and meet the
packaging and labelling requirements. Producers who comply with BIS standards can obtain
the ISI mark. The BIS has four regional offices and its Head Quarter is in Delhi.

 Directorate of Marketing & Inspection(DMI) : DMI enforces the agriculture

produce (Grading and Marketing) Act, 1937. Under this Act, grade standards are
prescribed for agriculture and allied commodities. Grading is voluntary and
manufacturers who comply with the standards laid down by DMI are allowed to put
Agmark labels on their products.

 Ministry of Environment and Forest : Ministry of Environment and Forest has

introduced Ecomark criteria for certain food items such as edible oil, tea, coffee, baby
foods and preserved food and vegetables. The criteria are in accordance with PFA, as
in the case of BIS standards, Ecomark is voluntary standard and not a mandatory one.
The Compound Livestock and Food Manufacturers Association of India, which also
manufactures animal and poultry feed has also laid down, certain standards for its
own members for the manufacture of compounded cattle and poultry feed. They have
also installed certain labs for testing Aflatoxin and other toxins. In the private sector,
particularly in poultry, there are labs like Poultry Diagnostic Research Centre which
are having excellent facilities for testing the samples, particularly on residues and
microorganisms etc. These labs also have been recognised by organisations like
APEDA for testing the residues of pesticides and antibiotic.

25
Annexure III: Basic Structure of The Integrated Food Law being
Considered by the Government
THE FOOD ACT

I. Objective

“To provide safe and wholesome food to the consumers and to create an enabling
environment for value addition to primary agricultural produce, to bring innovation and
creativity, and rapid development of food processing industries in an integrated manner,
ensuring a high degree of objectivity and transparency”.

II. Structure

This is a single Integrated Food Law, which is self-contained and complete.

This Act to cover all articles of food or drink for human consumption except drugs, tobacco,
alcoholic beverages and natural agricultural/horticulture/marine produce. (measures to
regulate the natural agricultural/horticultural/marine produce need to be notified separately).

 Food Regulatory Authority of India (FRAI)

(a) An autonomous “Food Regulatory Authority of India “to be set up, to coordinate and
supervise the implementation of the Food Act, to formulate rules and procedures, and to
amend, add or delete any of the same as may be required from time to time in fulfillment of
the objectives of The Food Act. To recommend to the Govt. on related issues.

(b) All current Laws governing food to be converged into this Food Act. This will include:

(1) The Prevention of Food Adulteration Act, 1954, PFA Rules, 1955. All the State
amendments and orders relating to the same.

(2) All orders under the Essential Commodities Act and other statutes pertaining to
food standards, quality, safety, packaging, mandatory certification etc. including FPO,
MMPO, MFPO, VOP, SEO, and others.

(3) Suitable amendments be made to the Agmark and BIS to remove mandatory
certification in relation to Food Articles from these.

(4) This Act will contain all necessary legal provisions regarding labelling
requirements. Hence, the provisions of such Acts as the Standards of Weights &
Measures Act, 1976, the related Packaged Commodities Rules, 1977, the Standards of
Weights & Measures (Enforcement) Act, 1985 and Infant Milk Substitutes and
Feeding Bottles Act so far as they pertain to food articles shall be specifically
converged into the Food Act.

26
(c) FRAI shall call for views from the aggrieved industry.

(d) FRAI will set up systems and infrastructure, curriculum, schedules etc. for the periodic
training and development of all personnel involved in t he Food Safety Administration (FSA)
and different segments of the food chain.

(e) The FRAI will notify standards of Food based on the recommendation of CFS.

(f) FRAI will notify a list of registered independent certifying agencies for food quality
assurance systems based on the recommendations of CFS.

(g) The FRAI will notify a list of accredited laboratories based on the recommendations of
CFS.

(h) The FRAI will encourage adoption of food quality assurance systems such as GHP, GMP
and HACCPby different classes of the food industry.

 Council of Food Standards (CFS)

(a) A unified and comprehensive system of laying Food Standards to be established under an
autonomous body having close and adequate participation of govt., industry, consumers &
technical institutions to be called the “Council of Food Standards”.

(b) The CFS to lay ‘Mandatory Minimum Food Safety Standards’ and to amend, add, or
delete any of the same as may be required from time to time, based on sound scientific
principles and technological developments and to make recommendations to the FRAI.

(i) CFS to lay the ‘Mandatory Minimum Food Safety Standards’ that are horizontal in
nature (i.e. not prescriptive) to facilitate innovation.
(ii) CFS may lay essential compositional standards (vertical standards) for certain
selected foods, in such cases the essential minimal parameters may be laid down.

(c) Food Additives permitted specifically or included in a category “general standard for
Food Additives” (GSFA) provided under Codex to be allowed unless specifically considered
undesirable on the basis of sound scientific principles.

(d) CFS will also be responsible for representing India in all the deliberations in the Codex.

(e) The CFS will lay down norms for adoption of minimal food quality assurance system by
different segments of the food chain and further lay down the criteria for registration of
independent certifying agencies to certify industries that follow food quality assurance
systems such as GHP, GMP & HACCP, as may be required having regard to the nature of the
food article, and recommend names of such agencies for registration to FRAI.

 Food Safety Administration (FSA)

(a) To define an effective system of ‘Food Safety Administration (FSA) to be run under the
overall supervision of the FRAI, with necessary help from the State Governments (being a
subject on the Concurrent List, field implementation to be through State Governments).

27
(b) The FSA will implement safety of food for the consumer.

(c) Certified Food Unit means a unit certified by any of the registered certifying agencies as
being compliant with the minimal food quality assurance system as specified.

(d) For certified Food Unit, the independent certifying agency shall follow a standardized
procedure of regular inspections of certified units, regular feedback to the unit, and suggest
improvements to ensure compliance.

(e) Once the unit is certified the State Food Authority shall grant a license.

(f) For certified Food Unit the Food Officers may also conduct, in case necessary,
administrative sampling of food, regular feedback to the unit. In the event of repeated
defaults in compliance, to recommend action to the State Food Authority.

(g) For uncertified units, the State Food Authority to follow a standardized procedure of
licensing, regular inspections of licensed units in the relevant jurisdictions, administrative
sampling of food regular feedback to the unit and suggest improvements to ensure
compliance. In the event of repeated defaults in compliance, to recommend action to the State
Food Authority.

(h) The State Food Authority will monitor compliance of this Act and the regulations made
under it in respect of food available in the market, through Food Officers appointed for
designated local areas.

(i) All samples to be collected as per standardized sampling procedures and the testing of
such food samples will b e conducted as per notified methods and by an accredited food
laboratory.

(j) Pursuant to the testing results, in case a need arises to take action, the food officer
(presently Food Inspector) will submit a report along with the test results to the State Food
Authority, with a copy to the manufacturer or vendor, within 10 days of the receipt of the test
report. The State Review Panel constituted by the State Food Authority will examine the
report and, in case action is proposed to be taken against the manufacturer take the following
steps:

1) Call for a report from the jurisdictional licensing authority regarding the systems
and processes followed by the unit and copies of last two inspection reports.
However, in the case of certified units the said report would be requisitioned from the
certifying agency or the manufacturer/vendor.
2) Issue a show-cause to the manufacturer.
3) Afford an opportunity o being heard to the manufacturer.
4) Consider the action appropriate to the facts and circumstances.

(k) The State Review Panel will be a body set up by the State Food Authority in accordance
with the norms laid down by FRAI and will consist of 5 members drawn from the State
judiciary, Food Industry, Consumers and eminent Food Technologists. The State Food
Authority may set up more t han one State Review Panel in case required.

28
(l) To provide appropriate systems to ensure a high level of neutrality, and transparency in the
Accreditation of testing laboratories by NABL (National Accreditation Board of Laboratories
of the Department of Science & Technology). A Manual of ‘Standard Testing Practice’ to be
published and tolerance limits of test procedures to be specified. Testing labs to give analysis
and calculation sheet along with test results.

(m) To incorporate grading of violations in order to enhance objectivity, strengthen

credibility of the system and avoid harassment & exploitation in the field. Distinction to be
laid down between labelling deficiencies, sub-standard product, and adulteration. This will
help in quick disposal of petty violations with sufficient economic disincentives and caution,
while allowing the system to focus on the serious violations with stronger punishments.

(n) The State Review Committee set up in each state/UT shall examine the test results and
make recommendation for appropriate compounding, recall or prosecution proceedings,
depending upon the nature & level of nonconformance found in the food sample.

(o) This Act to lay the procedure regarding acceptance of imported foods on the basis of
equivalence. The procedure should ensure that a non compliant & expired product does not
gain entry, and at the same time allow good quality established products without hindrance.

29
 UNITED NATIONS GUIDELINES FOR
CONSUMER PROTECTION
(as expanded in 1999)
(By Ayesha and Aditi)
I. Objectives

1. Taking into account the interests and needs of consumers in all countries, particularly those
in developing countries; recognizing that consumers often face imbalances in economic
terms, educational levels and bargaining power; and bearing in mind that consumers should
have the right of access to non-hazardous products, as well as the right to promote just,
equitable and sustainable economic and social development and environmental protection,
these guidelines for consumer protection have the following objectives:

(a) To assist countries in achieving or maintaining adequate protection for their

population as consumers;

(b) To facilitate production and distribution patterns responsive to the needs and
desires of consumers;

(c) To encourage high levels of ethic al conduct for those engaged in the production
and distribution of goods and services to consumers;

(d) To assist countries in curbing abusive business practices by all enterprises at the
national and international levels which adversely affect consumers;

(e) To facilitate the development of independent consumer groups;

(f) To further international cooperation in the field of consumer protection;(g) To

encourage the development of market conditions which provide consumers with
greater choice at lower prices;

(h) To promote sustainable consumption.

II. General Principles

2. Governments should develop or maintain a strong consumer protection policy, taking into
account the guidelines set out below and relevant international agreements. In so doing, each
Government should set its own priorities for the protection of consumers in accordance with
the economic, social and environmental circumstances of the country and the needs of its
population, bearing in mind the costs and benefits of proposed measures.

3. The legitimate needs which the guidelines are intended to meet are the following:
(a) The protection of consumers from hazards to their health and safety;

30
 (b) The promotion and protection of the economic interests of consumers;

(c) Access of consumers to adequate information to enable them to make informed

choices according to individual wishes and needs;

(d) Consumer education, including education on the environmental, social and

economic impacts of consumer choice;

(e) Availability of effective consumer redress;

(f) Freedom to form consumer and other relevant groups or organizations and the
opportunity of such organizations to present their views in decision-making processes
affecting them;

(g) The promotion of sustainable consumption patterns.

4. Unsustainable patterns of production and consumption, particularly in industrialized

countries, are the major cause of the continued deterioration of the global environment. All
countries should strive to promote sustainable consumption patterns; developed countries
should take the lead in achieving sustainable consumption patterns; developing countries
should seek to achieve sustainable consumption patterns in their development process, having
due regard to the principle of common but differentiated responsibilities. The special
situation and needs of developing countries in this regard should be fully taken into account.

5. Policies for promoting sustainable consumption should take into account the goals of
eradicating poverty, satisfying the basic human needs of all members of society, and reducing
inequality within and between countries.

6. Governments should provide or maintain adequate infrastructure to develop, implement

and monitor consumer protection policies. Special care should be taken to ensure that
measures for consumer protection are implemented for the benefit of all sectors of the
population, particularly the rural population and people living in poverty.

7. All enterprises should obey the relevant laws and regulations of the countries in which they
do business. They should also conform to the appropriate provisions of international
standards for consumer protection to which the competent authorities of the country in
question have agreed. (Hereinafter references to international standards in the guidelines
should be viewed in the context of this paragraph.)

8. The potential positive role of universities and public and private enterprises in research
should be considered when developing consumer protection policies.

III. Guidelines

9. The following guidelines should apply both to home-produced goods and services and to
imports.

10. In applying any procedures or regulations for consumer protection, due regard should be
given to ensuring that they do not become barriers to international trade and that they are
consistent with international trade obligations.

31
 A. Physical safety

11. Governments should adopt or encourage the adoption of appropriate measures, including
legal systems, safety regulations, national or international standards, voluntary standards and
the maintenance of safety records to ensure that products are safe for either intended or
normally foreseeable use.

12. Appropriate policies should ensure that goods produced by manufacturers are safe for
either intended or normally foreseeable use. Those responsible for bringing goods to the
market, in particular suppliers, exporters, importers, retailers and the like (hereinafter referred
to as distributors), should ensure that while in their care these goods are not rendered unsafe
through improper handling or storage and that while in their care they do not become
hazardous through improper handling or storage. Consumers should be instructed in the
proper use of goods and should be informed of the risks involved in intended or normally
foreseeable use. Vital safety information should be conveyed to consumers by internationally
understandable symbols wherever possible.

13. Appropriate policies should ensure that if manufacturers or distributors become aware of
unforeseen hazards after products are placed on the market, they should notify the relevant
authorities and, as appropriate, the public without delay. Governments should also consider
ways of ensuring that consumers are properly informed of such hazards.

14. Governments should, where appropriate, adopt policies under which, if a product is found
to be seriously defective and/or to constitute a substantial and severe hazard even when
properly used, manufacturers and/or distributors should recall it and replace or modify it, or
substitute another product for it; if it is not possible to do this within a reasonable period of
time, the consumer should be adequately compensated.

B. Promotion And Protection Of Consumers’ Economic Interests

15. Government policies should seek to enable consumers to obtain optimum benefit from
their economic resources. They should also seek to achieve the goals of satisfactory
production and performance standards, adequate distribution methods, fair business practices,
informative marketing and effective protection against practices which could adversely affect
the economic interests of consumers and the exercise of choice in the market place.

16. Governments should intensify their efforts to prevent practices which are damaging to the
economic interests of consumers through ensuring that manufacturers, distributors and others
involved in the provision of goods and services adhere to established laws and mandatory
standards. Consumer organizations should be encouraged to monitor adverse practices, such
as the adulteration of foods, false or misleading claims in marketing and service frauds.

17. Governments should develop, strengthen or maintain, as the case may be, measures
relating to the control of restrictive and other abusive business practices which may be
harmful to consumers, including means for the enforcement of such measures. In this
connection, Governments should be guided by their commitment to the Set of Multilaterally
Agreed Equitable Principles and Rules for the Control of Restrictive Business Practices
adopted by the General Assembly in resolution 35/63 of 5 December 1980.

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18. Governments should adopt or maintain policies that make clear the responsibility of the
producer to ensure that goods meet reasonable demands of durability, utility and reliability,
and are suited to the purpose for which they are intended, and that the seller should see that
these requirements are met. Similar policies should apply to the provision of services.

19. Governments should encourage fair and effective competition in order to provide
consumers with the greatest range of choice among products and services at the lowest cost.

20. Governments should, where appropriate, see to it that manufacturers and/or retailers
ensure adequate availability of reliable after-sales service and spare parts.

21. Consumers should be protected from such contractual abuses as one-sided standard
contracts, exclusion of essential rights in contracts and unconscionable conditions of credit by
sellers.

22. Promotional marketing and sales practices should be guided by the principle of fair
treatment of consumers and should meet legal requirements. This requires the provision of
the information necessary to enable consumers to take informed and independent decisions,
as well as me assures to ensure that the information provided is accurate.

23. Governments should encourage all concerned to participate in the free flow of accurate
information on all aspects of consumer products.

24. Consumer access to accurate information about the environmental impact of products and
services should be encouraged through such means as product profiles, environmental reports
by industry, information centres for consumers, voluntary and transparent eco-labelling
programmes and product information hotlines.

25. Governments, in close collaboration with manufacturers, distributors and consumer

organizations, should take measures regarding misleading environmental claims or
information in advertising and other marketing activities. The development of appropriate
advertising codes and standards for the regulation and verification of environmental claims
should be encouraged.

26. Governments should, within their own national context, encourage the formulation and
implementation by business, in cooperation with consumer organizations, of codes of
marketing and other business practices to ensure adequate consumer protection. Voluntary
agreements may also be established jointly by business, consumer organizations and other
interested parties. These codes should receive adequate publicity.

27. Governments should regularly review legislation pertaining to weights and measures and
assess the adequacy of the machinery for its enforcement.

C. Standards For The Safety And Quality Of Consumer Goods And Services

28. Governments should, as appropriate, formulate or promote the elaboration and

implementation of standards, voluntary and other, at the national and international levels for
the safety and quality of goods and services and give them appropriate publicity. National
standards and regulations for product safety and quality should be reviewed from time to

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time, in order to ensure that they conform, where possible, to generally accepted international
standards.

29. Where a standard lower than the generally accepted international standard is being
applied because of local economic conditions, every effort should be made to raise that
standard as soon as possible.

30. Governments should encourage and ensure the availability of facilities to test and certify
the safety, quality and performance of essential consumer goods and services.

D. Distribution Facilities For Essential Consumer Goods And Services

31. Governments should, where appropriate, consider:

(a) Adopting or maintaining policies to ensure the efficient distribution of goods and
services to consumers; where appropriate, specific policies should be considered to
ensure the distribution of essential goods and services where this distribution is
endangered, as could be the case particularly in rural areas. Such policies could
include assistance for the creation of adequate storage and retail facilities in rural
centres, incentives for consumer self-help and better control of the conditions under
which essential goods and services are provided in rural areas;
(b) Encouraging the establishment of consumer cooperatives and related trading
activities, as well as information about them, especially in rural areas.

E. Measures Enabling Consumers To Obtain Redress

32. Governments should establish or maintain legal and/or administrative measures to enable
consumers or, as appropriate, relevant organizations to obtain redress through formal or
informal procedures that are expeditious, fair, inexpensive and accessible. Such procedures
should take particular account of the needs of low-income consumers.

33. Governments should encourage all enterprises to resolve consumer disputes in a fair,
expeditious and informal manner, and to establish voluntary mechanisms, including advisory
services and informal complaints procedures, which can provide assistance to consumers.

34. Information on available redress and other dispute-resolving procedures should be made
available to consumers.

F. Education And Information Programmes

35. Governments should develop or encourage the development of general consumer

education and information programmes, including information on the environmental impacts
of consumer choices and behaviour and the possible implications, including benefits and
costs, of changes in consumption, bearing in mind the cultural traditions of the people
concerned. The aim of such programmes should be to enable people to act as discriminating
consumers, capable of making an informed choice of goods and services, and conscious of
their rights and responsibilities. In developing such programmes, special attention should be
given to the needs of disadvantaged consumers, in both rural and urban areas, including low-
income consumers and those with low or non-existent literacy levels. Consumer groups,
business and other relevant organizations of civil society should be involved in these
educational efforts.

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36. Consumer education should, where appropriate, become an integral part of the basic
curriculum of the educational system, preferably as a component of existing subjects.

37. Consumer education and information programmes should cover such important aspects of
consumer protection as the following:

(a) Health, nutrition, prevention of food-borne diseases and food adulteration;

(b) Product hazards;

(c) Product labelling;

(d) Relevant legislation, how to obtain redress, and agencies and organizations for
consumer protection;

(e) Information on weights and measures, prices, quality, credit conditions and
availability of basic necessities;

(f) Environmental protection; and

(g) Efficient use of materials, energy and water.

38. Governments should encourage consumer organizations and other interested groups,
including the media, to undertake education and information programmes, including on the
environmental impacts of consumption patterns and on the possible implications, including
benefits and costs, of changes in consumption, particularly for the benefit of low-income
consumer groups in rural and urban areas.

39. Business should, where appropriate, undertake or partic ipate in factual and relevant
consumer education and information programmes.

40. Bearing in mind the need to reach rural consumers and illiterate consumers, Governments
should, as appropriate, develop or encourage the development of consumer information
programmes in the mass media.

41. Governments should organize or encourage training programmes for educators, mass
media professionals and consumer advisers, to enable them to participate in carrying out
consumer information and education programmes.

G. Promotion Of Sustainable Consumption

42. Sustainable consumption includes meeting the needs of present and future generations for
goods and services in ways that are economically, socially and environmentally sustainable.

43. Responsibility for sustainable consumption is shared by all members and organizations of
society, with informed consumers, Government, business, labour organizations, and
consumer and environmental organizations playing particularly important roles. Informed
consumers have an essential role in promoting consumption that is environmentally,
economically and socially sustainable, including through the effects of their choices on

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producers. Governments should promote the development and implementation of policies for
sustainable consumption and the integration of those policies with other public policies.
Government policy-making should be conducted in consultation with business, consumer and
environmental organizations, and other concerned groups. Business has a responsibility for
promoting sustainable consumption through the design, production and distribution of goods
and services. Consumer and environmental organizations have a responsibility for promoting
public participation and debate on sustainable consumption, for informing consumers, and for
working with Government and business towards sustainable consumption.

44. Governments, in partnership with business and relevant organizations of civil society,
should develop and implement strategies that promote sustainable consumption through a
mix of policies that could include regulations; economic and social instruments; sectoral
policies in such areas as land use, transport, energy and housing; information programmes to
raise awareness of the impact of consumption patterns; removal of subsidies that promote
unsustainable patterns of consumption and production; and promotion of sector-specific
environmental-management best practices.

45. Governments should encourage the design, development and use of products and services
that are safe and energy and resource efficient, considering their full life-cycle impacts.
Governments should encourage recycling programmes that encourage consumers to both
recycle wastes and purchase recycled products.

46. Governments should promote the development and use of national and international
environmental health and safety standards for products and services; such standards should
not result in disguised barriers to trade.

47. Governments should encourage impartial environmental testing of products.

48. Governments should safely manage environmentally harmful uses of substances and
encourage the development of environmentally sound alternatives for such uses. New
potentially hazardous substances should be evaluated on a scientific basis for their long-term
environmental impact prior to distribution.

49. Governments should promote awareness of the health-related benefits of sustainable

consumption and production patterns, bearing in mind both direct effects on individual health
and collective effects through environmental protection.

50. Governments, in partnership with the private sector and other relevant organizations,
should encourage the transformation of unsustainable consumption patterns through the
development and use of new environmentally sound products and services and new
technologies, including information and communication technologies, that can meet
consumer needs while reducing pollution and depletion of natural resources.

51. Governments are encouraged to create or strengthen effective regulatory mechanisms for
the protection of consumers, including aspects of sustainable consumption.

52. Governments should consider a range of economic instruments, such as fiscal instruments
and internalization of environmental costs, to promote sustainable consumption, taking into
account social needs, the need for disincentives for unsustainable practices and incentives for

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more sustainable practices, while avoiding potential negative effects for market access, in
particular for developing countries.

53. Governments, in cooperation with business and other relevant groups, should develop
indicators, methodologies and databases for measuring progress towards sustainable
consumption at all levels. This information should be publicly available.

54. Governments and international agencies should take the lead in introducing sustainable
practices in their own operations, in particular through their procurement policies.
Government procurement, as appropriate, should encourage development and use of
environmentally sound products and services.

55. Governments and other relevant organizations should promote research on consumer
behaviour related to environmental damage in order to identify ways to make consumption
patterns more sustainable.

H. Measures Relating To Specific Areas

56. In advancing consumer interests, particularly in developing countries, Governments

should, where appropriate, give priority to areas of essential concern for the health of the
consumer, such as food, water and pharmaceuticals. Policies should be adopted or maintained
for product quality control, adequate and secure distribution facilities, standardized
international labelling and information, as well as education and research programmes in
these areas. Government guidelines in regard to specific areas should be developed in the
context of the provisions of this document.

57. Food. When formulating national policies and plans with regard to food, Governments
should take into account the need of all consumers for food security and should support and,
as far as possible, adopt standards from the Food and Agriculture Organization of the United
Nations and the World Health Organization Codex Alimentarius or, in their absence, other
generally accepted international food standards. Governments should maintain, develop or
improve food safety measures, including, inter alia, safety criteria, food standards and dietary
requirements and effective monitoring, inspection and evaluation mechanisms.

58. Governments should promote sustainable agricultural policies and practices, conservation
of biodiversity, and protection of soil and water, taking into account traditional knowledge.

59. Water. Governments should, within the goals and targets set for the International
Drinking Water Supply and Sanitation Decade, formulate, maintain or strengthen national
policies to improve the supply, distribution and quality of water for drinking. Due regard
should be paid to the choice of appropriate levels of service, quality and technology, the need
for education programmes and the importance of community participation.

60. Governments should assign high priority to the formulation and implementation of
policies and programmes concerning the multiple uses of water, taking into account the
importance of water for sustainable development in general and its finite character as a
resource.

61. Pharmaceuticals. Governments should develop or maintain adequate standards,

provisions and appropriate regulatory systems for ensuring the quality and appropriate use of

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pharmaceuticals through integrated national drug policies which could address, inter alia,
procurement, distribution, production, licensing arrangements, registration systems and the
availability of reliable information on pharmaceuticals. In so doing, Governments should take
special account of the work and recommendations of the World Health Organization on
pharmaceuticals. For relevant products, the use of that organizations Certification Scheme on
the Quality of Pharmaceutical Products Moving in International Commerce and other
international information systems on pharmaceuticals should be encouraged. Measures
should also be taken, as appropriate, to promote the use of international non-proprietary
names (INNs) for drugs, drawing on the work done by the World Health Organization.

62. In addition to the priority areas indicated above, Governments should adopt appropriate
measures in other areas, such as pesticides and chemicals in regard, where relevant, to their
use, production and storage, taking into account such relevant health and environmental
information as Governments may require producers to provide and include in the labelling of
products.

IV. International Cooperation

63. Governments should, especially in a regional or sub-regional context:

(a) Develop, review, maintain or strengthen, as appropriate, mechanisms for the
exchange of information on national policies and measures in the field of consumer
protection;

(b) Cooperate or encourage cooperation in the implementation of consumer protection

policies to achieve greater results within existing resources. Examples of such
cooperation could be collaboration in the setting up or joint use of testing facilities,
common testing procedures, exchange of consumer information and education
programmes, joint training programmes and joint elaboration of regulations;

(c) Cooperate to improve the conditions under which essential goods are offered to
consumers, giving due regard to both price and quality. Such cooperation could
include joint procurement of essential goods, exchange of information on different
procurement possibilities and agreements on regional product specifications.

64. Governments should develop or strengthen information links regarding products which
have been banned, withdrawn or severely restricted in order to enable other importing
countries to protect themselves adequately against the harmful effects of such products.

65. Governments should work to ensure that the quality of products, and information relating
to such products, does not vary from country to country in a way that would have detrimental
effects on consumers.

66. To promote sustainable consumption, Governments, international bodies and business

should work together to develop, transfer and disseminate environmentally sound
technologies, including through appropriate financial support from developed countries, and
to devise new and innovative mechanisms for financing their transfer among all countries, in
particular to and among developing countries and countries with economies in transition.

67. Governments and international organizations, as appropriate, should promote and

facilitate capacity-building in the area of sustainable consumption, particularly in developing

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countries and countries with economies in transition. In particular, Governments should also
facilitate cooperation among consumer groups and other relevant organizations of civil
society, with the aim of strengthening capacity in this area.

68. Governments and international bodies, as appropriate, should promote programmes

relating to consumer education and information.

69. Governments should work to ensure that policies and measures for consumer protection
are implemented with due regard to their not becoming barriers to international trade, and
that they are consistent with international trade obligations.

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