‘Indian Consumers in the New Age: A Forward Looking Agenda

to Address the Concerns of the Common People’ (ConsumersUp)

Key Findings of the Research

National Conclave
Oct. 11-12, 2012
IHC, New Delhi
 Project Back Ground
• On completion of twenty five years of Consumer Protection Act 1986, there is
need for compressive and forward looking Consumer Protection Policy to
address emerging consumer issues.
•  For this CUTS is implementing a one year (Nov. 2011-Oct. 2012) Project
named “ConsumerUP” in partnership with DoCA, GoI in four states of India.
• As part of the research component consumer survey has been conducted in 19
states and 3 union territories of India to understand the state of Indian
consumers. CUTS assigned the task to a professional agency; Insight
Development Consulting Group (IDCG) on competitive bidding basis.
• The focus of the survey was to assess the level of Knowledge, Awareness and
Exercise of consumers regarding consumer rights motioned in UN guidelines: -

 Right to Basic Needs  Right to Redressal

 Right to Safety  Right to Consumer Education
 Right to be Informed  Right to be Heard
 Right to Choice  Right to Healthy Environment 2
 Project Approach
Enabling environment for protection and
promotion of consumer interest
contributing towards the national interest”

1 National Conclave

4 Regional Consultations 8 State level knowledge

Enhancement workshops

Study on the State of the Indian Consumers

For more details, visit: http://www.cuts-international.org/CART/ConsumersUp/ 3

 Research Methodology & Coverage
• Surveyed 11,499 (53%Male & 47% Female) consumers following a
Stratified Multi-Stage Sampling Approach in 88 districts, spread across
19 states and 3 union territories of India
• Population Proportionate Sampling (PPS) methodology was used to
draw a sample representative of the state’s population.
– Other factors taken into account in stratifying the sample include: 
• Geographical spread
• Relative literacy rates of districts
• Rural and urban divide
• Categories of consumers in term of gender, education and financial status
• 385 qualitative samples collected through personal interactions with
consumer organizations, redressal bodies, Govt. departments/agencies.
• Period of Data Collection- March- June 2012

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Survey Sample Distribution

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 Right to Basic Needs
(Food, Water, Health, Sanitation, Education, Transport, Communication and energy)

• 31% respondents believe that the water from these sources is not potable,
hence not safe for drinking
• Only 24% respondents are aware about government Sanitation
Program/schemes.
• 77% consumers feel the need of a regulator for private schools.
• Only 4% consumers have access to internet.
• About 74% of the respondents who tried to access govt. housing finance
or bank finance scheme believe that finance is not easily accessible and
affordable
• Only 44% respondents have reported to receive appropriate quantity of
food grains from PDS/FPS on a regular basis.
• According to 59% respondents doctors do not generally prescribe generic
or competitively priced drugs/medicines.
• 26% respondents have travelled more than 5 km to access institutional
health care facility.
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 Right to Basic Needs

• Only 44% respondents consider cost of obtaining healthcare services affordable

• 17% believe that government support for home/community toilet is easily
accessible.
• Only 62% consumers consider electricity to be affordable.
• About 56% of those who use LPG or kerosene as their primary source of
energy for cooking have reported incidence of obtaining LPG/kerosene from
black market. About 20% of them always obtain LPG or Kerosene from black
market.
• Only 22% respondents are satisfied with Government’s effort to ensure
adequacy, accessibility and affordability of basic needs.
• 53% respondents strongly believe that right to basic needs should be enacted
as a legal right.

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 Right to Safety
• Though about 83% respondents believe that certification and
warnings are an important means to ensure right to safety.
• But 40% of respondents do not refer to any safety or quality
certifications such as ISI, ISO, Agmark, Codex etc. before making
a purchase.
– ISI is the most known certification
– Consumers suggested to make mandatory certification of Acid,
Paints, Mosquito Coils, Beverages and Electronic Items.

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 Right to be Informed
Awareness Regarding Consumer Protection Related Laws (%)

9
 Awareness Level of Different Legislations
Aware Urban Aware Rural

28

19
18
16
15
14
13
12
11
9
8 8
6
5
4 4

CPA1986 W&M 1976 SoG 1930 Contract Act Competition FSSA 2006 PSG 2011 LM 2009
1872 2002 10
 Awareness Level of Different Legislations
Aware Male Aware Female

17

12

10
22
9

8
16 7
5 13
12
5
9 9
8
6

CPA1986 W&M 1976 SoG 1930 Contract Act Competition FSSA 2006 PSG 2011 LM 2009
1872 2002 11
 Right to be Informed
Awareness Regarding Regulatory Agencies
40

35

30

25

20

15
26 40
27
10

16 24
5 16 25
0
ERC TRAI
FSSAI 8
SEBI IRDA
RBI
PFRDA
FMC 12
 Awareness Level of Regulatory Authorities
Urban Rural

51

39 38
34
32
30
28

22 23 22
19 20

14
12 11

ERC TRAI FSSAI SEBI IRDA RBI PFRDA FMC

13
 Awareness level of Regulatory Authorities
Aware Male Aware Female
44

35
33
30
28
27
26
25
23
22
19
18

14
13

8
7

ERC TRAI FSSAI SEBI IRDA RBI PFRDA FMC

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 Right to Choice
• Only few consumers are of aware about Products/Services which Should Offer
Portability
competition issues and their importance to
protect interests of consumers.
• only 1.6% respondents were able to correctly Insurance 15
name at least one product/service which has
only one or two producers/providers. LPG Connection 17

• Apart from availability, cost of alternatives,

transaction fee, documentation are the main Electricity 15

barriers before consumers in choosing

School/College
alternative service/products. Admission
12

Bank Account 60
• Consumers believe that there is need to Number

promote more free & fair competition in 0 10 20 30 40 50 60 70

Aviation, Education, Oil & Gas, Railway and

Real –Estate.
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 Right to Redressal
• 61% normally voice their complaints to seller, at first point
• When it come to actual situation - 93% respondents have never made a formal complaint
• Only 0.3% respondents have approached consumer fora for grievance redressal,
• 78% have rated the grievance redressal process as “difficult”.
– 75% cases were not completely redressed while only 18% of such unresolved cases
were taken to a higher authority for redressal.
– 67% cases were not redressed within stipulated time frame

• 0.1% people have approached sector ombudsman for redressal.

• Only 18% consumers are fully satisfied with the existing redressal mechanism
• Only 28% of those who know about external redressal mechanism believe that it is easily
accessible by a common man
• About 89% aggrieved consumers are represented through advocates in SCDRC and
DCDRC.

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 Right to Redressal- Major reasons for delay
• According to SCDRC/DCDRF, the three major reasons for delay
in redressal are :
– Adjournment Sought by Advocates/ Parties (27%)
– Limited/Inadequate Administrative/ Support Staff (19%)
– Educational Status of Complainant (11%)

• According to Consumer Organisations, the three major reasons

for delay in redressal are:
– Educational Status of Complainant (16%)
– Inadequate Administrative/ Support Staff (14%)
– Limited Number of Benches (13%)

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 Right to Consumer Education

• Only 42% respondents have heard about consumer rights

• 78% of such respondents heard about consumer rights from
television (TV) Almost 50% of respondents are aware of “Jago
Grahak Jago Campaign”.
• 80% of such respondents learnt about the campaign from
Television.
• Close to 50% of those who know about “Jago Grahak Jago” campaign
have reported to benefit directly or indirectly from the campaign.

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Right to be Heard /Consumer Representation
Hurdles in ensuring effective consumer
• only 23% are aware representation/ participation

about the process of

public consultation or Participation do not result in framing of consumer friendly regulations 5

consumer
representation.
• In rural area only Date/time and Objective of public consultation are not properly communicated 6

18% respondents are

aware Lack of interest among people to participate 25

• About 28% of those

who are aware about
public consultation or Lack of awareness among people 64

consumer
representation have 0 10 20 30 40 50 60
19
70

also participated
 Right to Healthy Environment
Awareness regarding environmental
• Only 9% respondents are aware about friendly certifications
certifications and initiatives.
• Awareness about such certifications is
largely among residents of southern Yes
9%
(18%) and northern (12%) region,
while eastern region has lowest level
of awareness (2.5%).
• About 28% respondents those who
know about such products always tend No
to buy such products 91%

• About 63% are willing to pay some

extra money to buy such products 20
 Ranking of target States/UTs in term of overall consumer awareness

Chandigarh Chandigarh; 1
Punjab Punjab; 2
Gujarat Gujarat; 3
Kerala Kerala; 4
Karnataka Karnataka; 5
Maharashtra Maharashtra ; 6
Goa Goa; 7
Haryana Haryana; 8
Delhi Delhi; 9
Tripura Tripura; 10
Jharkhand Jharkhand; 11
Puducherry Puducherry; 12
Uttar Pradesh Uttar Pradesh; 13
Madhya Pradesh Madhya Pradesh; 14
West Bengal West Bengal; 15
Chhattisgarh Chhattisgarh; 16
Tamil Nadu Tamil Nadu ; 17
Rajasthan Rajasthan; 18
Odisha Odisha; 19
Uttarakhand Uttarakhand; 20
Andhra Pradesh Andhra Pradesh; 21
Bihar Bihar; 22
0 5 10 15 20 2125
 ISSUES National Haryana Karnataka Tripura Jharkhand
People are using public distribution system (PDS) as preferred source for food grain. 14 5 18 57 17
Doesn’t know where to register complaint for PDS 19 52 8 67 12
Respondents are purchasing LPG/Kerosene from black market 20 14 23 29 12
Still wood is used as fuel in kitchens of respondent 46 45 19 30 35
Respondents meet their drinking water demand through public water supply 54 51 69 53 70
Only respondents having access to electricity above 20 hours supply on a normal day. 32 25 37 26 14
Respondent’s Awareness level Electricity Regulatory Commission 26 18 31 33 20

Respondents believe that access to education has increased due to Right to Education (RTE) 80 90 64 61 86
Instead of good, respondents have rated healthcare facility as “fair” 52 60 54 57 65
Accordingly respondents has respondent that generic medicines are not easily available 57 62 60 67 40
Respondents fully satisfied with government’s effort to ensure adequacy, accessibility and affordability of basic needs. 22 20 22 14 33

According to responses ISI is the most know certification 44 53 72 39 71

whereas Agmark and Codex certifications are known to very few.

Always check weights/quantity of product before purchasing 63 77 56 79 69

Always check contents Mark of product before purchase 29 56 24 31 47
Unaware of Consumer protection Act 86 39   93

RBI is known to the 40 50 47 54 41

TRAI is known to 27 32 36 13 30

Respondent ever approached Consumer forums for grievance redressal 2.6 02 03 13 0.3
Respondents not choosing any of Redressal Mechanism 93 92 89 92 97
Unknown to choosing alternative product/services is the biggest barrier 56 41 25 36 51

Respondents satisfied with the Present Grievance Redressal Mechanism 27 14 39 36 55

Respondents aware of internal redressal mechanism of a company 13 25 09 14 07
Respondents unaware of external redressal mechanism of a company 14 27 20 06 06
Respondents agrees, present Grievance Redressal Mechanism’s Ability to Compensate Aggrieved Consumer 13 25 18 11 06

Respondents aware of “Jago Grahak Jago” 51 81 59 65 81

Awareness level of respondents on Consumer Rights 41 42 62 48 69

Respondent’s aware about the public consultation 23 23 34 06 11

Respondents Participation in Public Hearing/ Public Consultation 06 14 17 02 03
Lack of awareness among people for not participating in such events 64 80 39 22 35

People’s awareness regarding environmental friendly certifications 09 13 39 11 2.1

Respondents Always Purchase Environment Friendly Products 28 16 44 09 57
Willingness to pay extra money for such products 63 56 59 73 71

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 Recommendations
•There is need of a separate department for consumer affairs to coordinate all
consumer related affaires.
•There is need to simplify & speed-up process of consumer fora.
•There should mediation/consumer cells every in District Forum.
•There is need of a National Authority to curb unfair trade practices , mainly
misleading advertisements.
•There is a need of national campaign for consumer awareness (like Jago
Grahak Jago) in all regional languages.
•There is need to creat more awareness about regulatory agencies and their
regulations for consumer protection. Every regulator should have dedicated
fund for consumer protection.
•There is demand to maker Right to basic need a legal right.

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 Recommendations
• There is need of regulators for education, health and real-estate sectors.
• There should be more emphasis on consumer education in school and
college curriculum.
• There is need to ensure access to affordable health services/medicines,
especially promotion of generic medicines.
• There is needs to promote sustainable consumption and production by
providing incentives to green production & consumption.
• There is need to activate/empower consumer protection council at
national/state/district level.
• There should be case management system in Consumer Fora for proper
monitoring of disposal to ensure timely disposal.

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 Thank You

Amarjeet Singh,
Project Coordinator,
CUTS International
D- 217, Bhaskar Marg,
Bani Park, Jaipur 302 016, India
Ph: 91.141.5133259, 2282 823/2282 482
Mob: 91. 9829015812
Fax: 91.141. 4015395
Email: as7@cuts.org; consumersUp@cuts.org;
Project Webpage: http://www.cuts-international.org/CART/ConsumersUp/

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