Consumerism, the consumer movement and voluntary organisations

1. Meaning of consumerism

Philip Kotler defines consumerism as “a social movement seeking to augment the rights and powers of buyers in relation to sellers.” It arose because the consumer, though called “king”, is in practice weak: unorganised, poorly informed, and dealing with large, well-advised sellers. The modern movement is traced to US President John F. Kennedy’s message to Congress on 15 March 1962, which named four consumer rights (safety, to be informed, to choose, to be heard). 15 March is World Consumer Rights Day; in India, 24 December (the date of assent to the 1986 Act) is National Consumer Day. Ralph Nader’s Unsafe at Any Speed (1965) on car safety gave the movement its activist form.

2. Causes of consumerism (why consumers need protection)

• Adulteration, under-weighing and spurious goods.
• Misleading advertisements and false claims.
• Hoarding, black-marketing and overcharging.
• Unsafe and defective products.
• Poor after-sales service and unfair contract terms.
• Ignorance and illiteracy of consumers, and lack of organisation.
• Monopoly power of large firms; new risks of online sales and data misuse.

3. Importance of consumerism

1. Protects consumers against exploitation and unfair trade practices.
2. Creates awareness of rights and duties.
3. Improves quality: firms adopt standards (BIS, ISI and Hallmark marks, AGMARK) to win trust.
4. Encourages fair competition on price and quality.
5. Pushes business to social responsibility and ethical conduct.
6. Gives quick, cheap redressal through consumer commissions.
7. Helps government frame and enforce consumer laws.
8. Benefits honest business, which gains from consumer confidence.

4. Consumer movement in India

Early protection came from laws such as the Sale of Goods Act, 1930, the Agricultural Produce (Grading and Marking) Act, 1937, the Drugs and Cosmetics Act, 1940, the Prevention of Food Adulteration Act, 1954 and the Essential Commodities Act, 1955. The organised movement began with the Consumer Guidance Society of India (Mumbai, 1966) and the Consumer Education and Research Centre (Ahmedabad, 1978). The Consumer Protection Act, 1986 created three-tier forums, and the Consumer Protection Act, 2019 modernised the system.

Impact of the consumer movement (June 2025, 10 marks): a dedicated statute and redressal machinery; greater awareness through campaigns such as “Jago Grahak Jago”; standards and labelling (the Legal Metrology Act, 2009 and the Food Safety and Standards Act, 2006); compulsory hallmarking of gold jewellery; product recalls and better after-sales service; regulation of misleading advertisements and e-commerce; and a shift of business towards customer satisfaction. Its limits remain: low awareness in rural areas, delays in commissions, and a weak consumer network outside big cities.

5. Consumer rights under the 2019 Act

Section 2(9) lists six rights:

1. To be protected against marketing of goods, products or services that are hazardous to life and property (safety).
2. To be informed about quality, quantity, potency, purity, standard and price (information).
3. To be assured access to a variety of goods at competitive prices (choice).
4. To be heard and assured that consumer interests receive due consideration at appropriate fora (be heard).
5. To seek redressal against unfair or restrictive trade practices or unscrupulous exploitation (redressal).
6. To consumer awareness (education).

6. Consumer disputes redressal agencies (consumer forums)

The 2019 Act renamed the forums “Commissions”. Pecuniary jurisdiction is based on the value of goods or services paid as consideration (Consumer Protection (Jurisdiction of the District Commission, the State Commission and the National Commission) Rules, 2021):

Other features of the 2019 Act: a complaint may be filed where the complainant resides or works, and online through the e-Daakhil portal; the Central Consumer Protection Authority (section 10) can investigate, order recalls, and penalise false or misleading advertisements, including by endorsers; product liability of manufacturers, service providers and sellers (Chapter VI); mediation cells attached to Commissions; unfair contract terms can be declared void; and e-commerce is covered by the Consumer Protection (E-Commerce) Rules, 2020. Complaints are to be decided within three months, or five months where testing of goods is needed. The National Consumer Helpline (1915) handles grievances before litigation.

7. Role of voluntary consumer organisations

1. Educating consumers about rights through camps, publications and media.
2. Filing complaints on behalf of consumers: a voluntary consumer association registered under any law is a “complainant” under section 2(5) of the 2019 Act, and can bring class actions for many consumers with the same interest.
3. Testing products and publishing comparative results (Consumer VOICE’s magazine; CERC’s testing laboratory).
4. Legal aid and counselling to consumers.
5. Representation on government consumer protection councils, BIS committees and regulators.
6. Lobbying for laws and standards and public interest litigation.
7. Campaigns against unfair practices and boycotts of harmful products.

Examples: Consumer Guidance Society of India (Mumbai), CERC (Ahmedabad), Consumer Unity and Trust Society (CUTS, Jaipur) and Consumer VOICE (New Delhi).

How this is examined

January 2026 asked “What is consumerism? Explain the importance of consumerism”, “Consumer Forums in India along with Consumer Rights” (16 marks), a note on the role of voluntary organisations, and the role of voluntary consumer organisations (10 marks); June 2025 asked for the impact of the consumer movement, the role of voluntary organisations in promoting consumer rights, and consumerism with redressal agencies; February 2025 asked for the importance of the Consumer Protection Act, 1986 (answer on the 2019 Act, noting the repeal).