CHAPTER-IX

CONSUMER PROTECTION

The basic objective of Consumer Policy of the State Government is to ensure that goods and services are available to consumers at prices and quality as per laws of the land. In view of complexity of the market place, ever-changing technology and impact of globalization, consumers need to be protected. Trade practices need to be identified and regulated to prevent exploitation of gullible consumers and enable them to reach higher states of well being. Antiquated laws and codes need to be re-engineered to move into a framework of consumer empowerment.

Government of India have provided financial support for various special schemes such as consumer clubs, district consumer information centers, awareness campaigns, training programmes, infrastructure for State Consumer Disputes Redressal Commission, District Consumer Fora, etc. New schemes such as establishment of State-level consumer help line have been proposed in the 11^th Five Year Plan period.

In Tamil Nadu, the State Government have initiated various schemes to instill awareness on consumer education and rights among general public and students. State Government have allotted Rs.25 lakhs for implementation of such schemes during the financial year 2007-08. Besides, the State Government have obtained Rs.2.67 crores as grant-in-aid from Government of India for implementation of special consumer awareness schemes for Self Help Groups and other stakeholders. Details of schemes implemented during previous financial year 2007-08 by Government of Tamil Nadu with the grant-in-aid provided by Government of India and from State fund are as detailed below.

Consumer clubs

Formation of Consumer clubs are actively encouraged in all high schools, colleges and polytechnics. These clubs are being facilitated to develop into resource groups. School consumer clubs are encouraged to take student-members to go for outreach camps to local neighbourhoods to conduct consumer education shows, demonstrations on adulteration, frauds, etc. In this process, financial assistance of Rs.50 lakhs has been released to 500 schools for consumer clubs established during 2005-06. A total of Rs.20,000 per club has been released, including Rs.10,000/-, as second and final installment during 2007-2008. In addition, Rs.50 lakhs has been sanctioned by Government for forming consumer clubs in 500 additional schools @ Rs.10,000/- per club as first instalment. Thus, a total sum of Re.1 crore was released to 1,000 consumer clubs during 2007-08.

Further, Rs.36.25 lakhs was sanctioned as grant-in-aid of Government of India, out of which a sum of Rs.1.25 lakhs was released to each district, other than Chennai, for the purpose of spreading consumer awareness messages among rural masses at grass-root level, through print media and cultural events and other consumer education-oriented programmes as per guidelines of Government of India.

Training and sensitising NGOs, Government officials and other stakeholders on Consumer Protection Act, 1986, on Right to Information Act, 2005, other laws is critical for upholding consumer rights. This will enable better appreciation of consumer problems and better enforcement. For this initiative, Rs.10.92 lakhs was obtained as grant-in-aid from Government of India. A sum of Rs.36,400/- has been released to each district for conducting this training programme for enforcement officials of various departments having consumer interface to enable them to become sensitive to consumer needs and problems while resolving their grievances effectively.

To create a cadre of community based, consumer friendly and knowledgeable activists, training of Self Help Groups, Neighbourhood Groups, Farmers Clubs, Water Users Associations, Area and Resident Welfare Associations, etc. has been proposed through a training of trainers programme. Rs.69.90 lakhs has been obtained as grant-in-aid from Government of India. Training will be conducted at Block level for Self Help Group Panchayat Level Federation Leaders, who in turn will spread awareness amongst other SHG members. In this process, 9,000 members of SHG / PLFs from 300 blocks will be trained. This training is expected to be completed by July 2008.

Tamil Nadu State Consumer Welfare Fund

The State Government has constituted a corpus fund with contributions from State and Centre as seed money assistance @ Rs.50 lakhs each in the ratio of 50:50. A separate set of rules has been notified for the Tamil Nadu State Consumer Welfare Fund Rules outlining the modalities for utilizing this corpus fund and for further accumulation of fund through credit of punitive fines imposed by State Consumer Disputes Redressal Commission and District Consumer Fora and fee paid by the consumers before District Fora / Commission while filing complaints. Tamil Nadu State Consumer Welfare Fund would be used effectively to promote consumer education through media, Voluntary Consumer Organisations and research as per the guidelines issued in Tamil Nadu State Consumer Welfare Fund Rules. Out of total available amount of Rs.1 crore in Tamil Nadu State Consumer Welfare Fund, Rs.32 lakhs has been released to Tamil Nadu Film Division for making short films about consumer awareness messages. This will be telecast in Doordharshan in 2008-2009.

Every citizen has to be instilled with knowledge of consumer rights. Ignorance of consumers, particularly of rural consumers, is mainly responsible for their exploitation. To assess problems faced by consumers in various sectors, workshops have been held in the last several years with participation of voluntary consumer organisations, manufacturers , service providers and Government officials. Workshops on Mobile phone communications, Credit Cards, Drugs, Real Estate, Unfair Trade Practices were conducted by this department. It is also proposed to conduct more such sectoral workshops in 2008-09. Policy recommendations have been sent to various Government departments, manufacturer associations and related agencies, based on the proceedings of these workshops.

To educate consumers about their rights, in general, and laws, standards, rules and codes in each sector through print media, a newly designed quarterly magazine "Nugarvor Kavasam" is being published by Commissioner of Civil Supplies and Consumer Protection and being distributed free of cost to all Government Offices, School/College Consumer Clubs, Voluntary Consumer Organizations and Public libraries in the State. It has been proposed to upgrade this journal into a monthly publication in 2008-2009 and offer a priced copy to enable increasing the circulation substantially from the present 6,500 copies per quarter.

Awards for Consumer Organisations

The State Government is honouring activists of Voluntary Consumer Organizations for their exemplary service towards consumer protection activities by giving Awards every year. The State Government of Tamil Nadu has launched a website exclusive for use of consumers at www.consumer.tn.gov.in. This website contains comprehensive information relating to consumer protection, with provision for online registration of consumer complaints on Public Distribution System as well as other sectors. This website would also host on-line discussion groups on important consumer issues. Online Consumer grievance Redressal registration and monitoring system has been launched as part of this website in March 2008.

World Consumer Rights Day celebrations on 15^th March has been conducted in all districts. Besides, State level World Consumer Rights Day celebrations were held in Kancheepuram. A State level National Consumer Rights Day celebration was organised in Madurai District.

Other programmes

Government have proposed to conduct following activities from State funds during 2008-2009.

(i) Conduct of training programmes and State level seminars and workshops, campaign through media, publication of monthly magazine and publicity through sign boards.

(ii) Establishment of State Consumer Information Centre at Chennai and establishment of District Consumer Information centers in all district Collectorates.

(iii) Conducting State level celebrations in one district marking World and National Consumer Rights Day.

(iv) Launching of mobile testing lab with testing instruments for testing consumer products and food items and intensive sampling testing of consumer products and initiating legal action against manufacturers of adulterated and deficient products.

(v) Conducting district level training to school and college teachers for forming Consumer clubs, elimination of junk food, etc.

State Consumer Disputes Redressal Commission and District Consumer Disputes Redressal Fora

Under the Consumer Protection Act, 1986, the following quasi-Judicial machinery has been set up at the District and State Levels in Tamil Nadu. Consumer Disputes are disposed of in a speedy and simple manner through these fora.

Tamil Nadu State Consumer Disputes Redressal Commission

Tamil Nadu State Consumer Disputes Redressal Commission is located at Chennai. Any consumer can file a complaint before the State Commission, provided the compensation sought for is more than Rs.20 lakhs but less than Rs.1 crore. The State Commission is headed by a Retired High Court Judge. It has two other Members, one a male and the other a women. The State Commission is the appellate authority and revisional authority for all the District Fora in the State. The details of cases filed and disposed off by the State Commission during the year 2007 are furnished below:-

District Consumer Disputes Redressal Fora

As per Consumer Protection Act, 1986, every Revenue District should have a District Consumer Disputes Redressal Forum. There are 30 district fora at present, of which six are combined fora. The District Consumer Disputes Redressal Fora are quasi-judicial bodies, where a consumer can file the complaint before the District Forum in his/her district, provided the cost of goods or compensation asked for does not exceed Rs.20 lakhs. Each District Forum consists of a President (who is either a retired District Judge or an Advocate qualified to be a district judge) with two Members, one of whom is a female member. The details of cases filed and disposed of by the District Fora during the year 2007 are furnished below:-

Further, the Government is taking action to provide necessary buildings and other infrastructure facilities to the State Consumer Disputes Redressal Commission and District Consumer Disputes Redressal Fora. 37 additional staff were created to strengthen the functioning of consumer courts during 2007-2008. As an effort to reorganize the jurisdiction for the benefit of consumers, Pudukkottai district has been detached from the jurisdiction of Dindigul fora and linked to Thanjavur district forum Similarly, Villupuram district has been detached from Chengleput forum’s jurisdiction and has been attached with Cuddalore forum. After bifurcation of Dharmapuri district into Dharmapuri and Krishnagiri, no separate forum was created for Krishnagiri. Now Government has issued orders on 7.3.2008 sanctioning new fora for Krishnagiri district and this forum will start functioning shortly at Krishnagiri.

Confonet Project:

Under this project, computerization and computer networking of the consumer fora has been taken up. The State Consumer Disputes Redressal Commission and all the District Consumer Disputes Redressal Forum have been provided with computer hardware, software and broadband connectivity, except District Consumer Disputes Redressal Forum, Madurai. This project is expected to computerize all earlier judgements as well as judgements delivered currently online by June, 2008. The Confonet project will benefit the public by making available daily case list, copies of judgement, status of the pending cases, etc. over the Internet Website. It will benefit consumer fora in retrieving case laws quickly by cataloguing information. Connectivity to Madurai District Consumer Disputes Redressal Forum will be provided during 2008-09.

E.V.VELU

MINISTER FOR FOOD