National Conclave Oct , 2012 IHC, New Delhi ‘Indian Consumers in the New Age: A Forward Looking Agenda to Address the Concerns of the Common People’ (ConsumersUp) Key Findings of the Research

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 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: - 2 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

Project Approach 3 Study on the State of the Indian Consumers 4 Regional Consultations 1 National Conclave 8 State level knowledge Enhancement workshops Enabling environment for protection and promotion of consumer interest contributing towards the national interest” For more details, visit:

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

Survey Sample Distribution 5

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. 6

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. 7

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. 8

Right to be Informed 9 Awareness Regarding Consumer Protection Related Laws (%)

10

11

Right to be Informed 12 Awareness Regarding Regulatory Agencies

13

14

Right to Choice Only few consumers are of aware about competition issues and their importance to protect interests of consumers. only 1.6% respondents were able to correctly name at least one product/service which has only one or two producers/providers. Apart from availability, cost of alternatives, transaction fee, documentation are the main barriers before consumers in choosing alternative service/products. Consumers believe that there is need to promote more free & fair competition in Aviation, Education, Oil & Gas, Railway and Real –Estate. 15 Products/Services which Should Offer Portability

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. 16

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%) 17

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. 18

Right to be Heard /Consumer Representation only 23% are aware about the process of public consultation or consumer representation. In rural area only 18% respondents are aware About 28% of those who are aware about public consultation or consumer representation have also participated 19 Hurdles in ensuring effective consumer representation/ participation

Right to Healthy Environment Only 9% respondents are aware about certifications and initiatives. Awareness about such certifications is largely among residents of southern (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 to buy such products About 63% are willing to pay some extra money to buy such products 20 Awareness regarding environmental friendly certifications

Ranking of target States/UTs in term of overall consumer awareness 21

22 ISSUESNationalHaryanaKarnatakaTripuraJharkhand People are using public distribution system (PDS) as preferred source for food grain Doesn’t know where to register complaint for PDS Respondents are purchasing LPG/Kerosene from black market Still wood is used as fuel in kitchens of respondent Respondents meet their drinking water demand through public water supply Only respondents having access to electricity above 20 hours supply on a normal day. Respondent’s Awareness level Electricity Regulatory Commission Respondents believe that access to education has increased due to Right to Education (RTE) Instead of good, respondents have rated healthcare facility as “fair” Accordingly respondents has respondent that generic medicines are not easily available Respondents fully satisfied with government’s effort to ensure adequacy, accessibility and affordability of basic needs According to responses ISI is the most know certification whereas Agmark and Codex certifications are known to very few Always check weights/quantity of product before purchasing Always check contents Mark of product before purchase Unaware of Consumer protection Act RBI is known to the TRAI is known to Respondent ever approached Consumer forums for grievance redressal Respondents not choosing any of Redressal Mechanism Unknown to choosing alternative product/services is the biggest barrier Respondents satisfied with the Present Grievance Redressal Mechanism Respondents aware of internal redressal mechanism of a company Respondents unaware of external redressal mechanism of a company Respondents agrees, present Grievance Redressal Mechanism’s Ability to Compensate Aggrieved Consumer Respondents aware of “Jago Grahak Jago” Awareness level of respondents on Consumer Rights Respondent’s aware about the public consultation Respondents Participation in Public Hearing/ Public Consultation Lack of awareness among people for not participating in such events People’s awareness regarding environmental friendly certifications Respondents Always Purchase Environment Friendly Products Willingness to pay extra money for such products

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. 23

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. 24

25 Thank You Amarjeet Singh, Project Coordinator, CUTS International D- 217, Bhaskar Marg, Bani Park, Jaipur , India Ph: , / Mob: Fax: Project Webpage: