Context:

Despite many policy efforts and grievance redressal mechanisms, the overall time consumed in addressing consumer grievances is still high in India.

Consumer protection:

• A crucial aspect of modern economies, with the objective of safeguarding the rights of consumers against unfair trade practices and ensuring fair and efficient dispute resolution mechanisms.
• India, one of the world’s fastest-growing economies, has made significant strides in consumer protection, with the Consumer Protection Act 2019 strengthening the legal framework for consumer rights.

Why is Consumer Protection Necessary?

• To empower consumers by giving them the necessary information to make informed decisions about their purchases. 
• To prevent fraudulent activities such as false advertising, misleading labeling and price manipulation. This not only protects consumers but also promotes fair competition in the market.
• To reduce health and safety risks, Regulations on food products, pharmaceuticals and medical devices help to ensure that they meet minimum safety standards.
• To promote economic growth by creating a level playing field for businesses to compete fairly. This can increase consumer confidence in the market, leading to increased spending, investment and job creation.
• To uphold consumer rights such as the right to be informed, the right to choose, the right to safety and the right to be heard. These rights are essential for building a fair and just society.

Roadblocks in Consumer Protection in India:

• Pendency of Cases in India is quite high, with a backlog of cases at both state and national levels, which results in long waiting periods and delays in dispute resolution, which frustrates consumers.
• Lack of necessary infrastructure and manpower to handle a large number of cases effectively, which could have been resolved quickly.
• Inefficient Grievance Redressal Mechanisms
• Lack of Awareness among Consumers, which makes it difficult for consumers to approach the consumer forums and seek justice.
• Limited Participation of Businesses, which further limits the effectiveness of consumer protection laws and slows down the resolution of consumer grievances.

What are the Related Initiatives taken?

1. 1. Integrated Grievance Address Mechanism (INGRAM) Portal
   2. Organisation of national Lok Adalats in partnership with the National Legal Services Authority.
   3. Consumer Protection Act, 2019

Way Forward:

• Consumer Awareness plays a crucial role in protecting consumer rights.
• Consumers should be aware of their rights and responsibilities, and the government should conduct regular awareness campaigns to educate consumers about their rights.
• Product Quality Standards should be the priority to protect consumers from substandard and hazardous products.
• E-commerce regulations are the need of the hour. With the rise of e-commerce, the government has also introduced regulations to protect consumers who shop online.
• Improving Data Governance by making it mandatory to collect all KYC details of the parties involved in disputes, communication time can be saved.

News Source: Financial Express