Customer First

Good Governance and Citizen's Charter

Highlights
Acknowledging good governance as an exemplary aim, the role of Charters was vigorously debated. Concern over lack of commitment and interest in the matter shown by MPs and media, resulting in the non-implementation of Charters, was expressed. Successful cases of cheap and effective publication and mass distribution of Charters in Madhya Pradesh and Tamil Nadu were set forth as good examples. The need for advocacy and lobbying with policymakers to ensure continuation of delivery was recognized. The role of right to relevant and precise information, transparency and accountability of public funds as the essential elements of good governance was discussed.

Resolutions
* The involvement of NGOs, CCC and consumer groups in the Charter Campaign to reach consumers and service providers is to be enhanced.
* The CCC is to widen its membership with consumer groups.
* Tripartite meetings are to help reach better understanding between government, service providers and citizen's groups.
* Provisions for performance failure at the service provider's are to be integrated into the Citizen's Charter.
* Charters to be distributed in regional languages.
* The Charters to be simplified and abridged; and transparency and accountability to be introduced into the consultation process.
* Charter advocacy and sensitization to be handled by elected representatives, media, the panchayats and also by the lower rung of government administration.
* The CCC is to co-operate with government departments. Consumers and citizens are to mobilized by the CCC into an effective pressure group.
* Right to information is to be inherent in the Charter movement.
* The Citizen's Charter is to be made an election issue.
* Consumer groups should specialize in vital sectors to be able to develop expertise and function effectively.

Highlights

The CPA's commitment to ensuring quality of goods and to speedy consumer redressal was reaffirmed. A Collaboration between legal service authorities and consumer forums to assist the litigant public was suggested. This would balance the existing difficulties in the litigation process in the consumer's favor. The inadequacies in the CPA over the past 10 years were noted and statistics showing successful redresses were presented. Measures to enable quicker complaint disposals, empowerment of consumer forums and widening of CPA provisions were announced.
Commenting on the lack of pro-activity of CPA legislation, the speaker underlined the flaw in the Credit system relating to the indebtedness among consumers. While pointing out the ineffectiveness of ombudsmen, the speaker chose to point out to other related issues such as the scope and funding of legal aid. It was also noted that mechanisms like ADR, BBB and AAA could also be used for redressing consumer grievances amicably without the aggrieved turning to courts.

Resolutions

* Definition of services and goods in the CPA Act to be widened to cover the public services rendered by statutory and corporate bodies.
* Suitable amendments to various provisions are to make CPA proactive as regards filing of complaints, withdrawal of hazardous goods and services.
* Every district consumer forum and state commission to have a counseling center.
* A consumer information and guidance center is to disseminate information to public, VCOs and NGOs of the locality and to interact with consumers.
* Education qualifications and experience of the members of the redressal agencies have to be specified.
* Power of the redressal agencies to be widened to include financial powers to allocate and relocate funds for effective functioning.
* Autonomy of state commissions to be maintained by empowering representatives as Drawing and Disbursing Officers.

Highlights

The workshop started by recognizing the vital role played by women by being on the vanguard of the consumer movement since the Chipko movement in 1976 and beyond. Women have been spearheading resistance against issues such as breast milk substitutes and environmental exploitation. The plight of women exploited through dubious investment schemes, the beauty business and advertising was also brought to light.
Reminding everyone that 85 percent of purchases are made by women in the household, the speaker called upon women to use their experiential knowledge as a means of change in society.

Resolutions

* Women to be reached on the grassroots level to bring out their consumer awareness.
* Women to form about 50% of membership of every consumer organization.
* Women are to be selected for state commissions, redressal forums, advisory committees and consumer cells.

Highlights

The following areas were mainly in focus during the workshop:

1. Non performing assets: Bad debts on account of the Corporate Sector in connivance with corrupt banking personnel.
2. Inconvenience with officers: Complaints such as deficit of interest payments suffered by consumers through delays in clearance; unnecessary objections raised by bank officers, filing of complaints, problems with pension checks etc. were given voice.
3. Bank Frauds: The need to protect the middle class poor, women and the deprived class from willful default and fraudulent dealings of bank officers was set forth.
4. Introduction of e-banking: Emphasizing the needs of the new economy consumers, the speaker made references to restructuring and service standard changes required in the bank, systems and provisions for new technology training and orientation and towards computerizing and tele-banking.

Resolutions

* Consumer representation to be involved in the complaints redressal machinery of banks at all levels.
* RBI's recommendation for voluntary Retirement Scheme (VRS) should be implemented to avoid fraud and accumulation of non-performing assets
* Unnecessary strikes causing heavy losses to commercial transactions and harming consumers interest must be avoided.

Highlights

The context for this workshop was provided by the need to organize education workshops for the benefit of common investors, particularly the small ones. Several common difficulties faced by investors today (e.g. while dealing in shares and the steps taken by the Kolkata Stock Exchange) were discussed. Issues relating to fraudulent investment companies and non-banking financial institutions were also discussed.
The speakers expressed genuine enthusiasm for holding and participating in 'investor workshops' in the future.

Resolutions

* In view of non-repayments of public debts by non-banking financial institutions, the Convention urges the Government to make defaulter companies accountable for paying dues without any further harassment.
* The Investor Education and Promotion Fund should be effectively utilized for the awareness of investors.
* Prior permission from SEBI or other competent authority to be made mandatory for gifts of movable or immovable property (other than registered charitable trust) worth more than Rs.25000.
* The rate of income tax on long-term capital gain from sale of any asset should be restricted to ten percent as is now in the case of transfer of securities.
* The Company Law Board should be cautious in allowing waiver of interest or repayment of deposits by installments to the investors, and for safeguarding the investor's interest. A consumer representative should be appointed by the Company Law Board, the workshop resolves.

Rural Consumer and Social Justice

Highlights

This Workshop tried to highlight some of the severest problems faced by the rural consumer and the poor. Wide spread maladies and malpractice like adulteration, substandard PDS supplies and housing materials, under-weighing and over-pricing of essential commodities in the rural markets were pointed out. The necessity of vigilant committees to monitor prices and law awareness camps in rural areas to protest injustice was stressed.
Other proposals included General Insurance Company for insuring cattle, banks to release entire sanction amount, adequacy of scheme money, harassment of rural consumers.

Resolutions

* Consumer Protection Act may be amended to cover free medical services in the government hospitals as a consumer right. This is to guarantee the free treatment usually denied to and paid for by the rural consumers in Government Hospitals.
* To ensure a fair and just weight regime to the rural consumers. Testing kits and monitoring cells (to check overpricing and quality of product) are to be made available.
* Consumer education through pamphlets and other common media is to be made available in regional language. Consumer institutes are to be established at block level and VCOs are to extend their activities to rural areas. This would enable wider coverage.
* NGOs are to be established in the rural areas to represent at the Central Consumer Protection Council, state CPC and Consumer Coordination Council. These NGOs need to be facilitated through public financing.
* State Commissions are to have periodic meetings and model projects devised and assigned to voluntary consumer organizations.
* Human rights and ideas of social and economic justice and free governance enshrined in the Indian Constitution are to be assured and protected.

Highlights

Competition., Competition Law, Competition Authority (administrative and investigative) and Competition Watchdog were the key points discusses in the workshops. The need for new Competition Law for India was expressed in view of the changing economic scenario in a globalizing world, especially given the competition abuses that common consumers are facing today.
Other issues included initiatives taken by the Consumer Unity & Trust Society (CUTS), the need for action on anti-dumping and safety standards.

Resolutions

* Anti-dumping clauses and safety standards should be built into the Competition Law so that consumer and public interests are taken care of.
* The Law must be given power to enforce Competition Law in its letter and spirit and check competition abuses in the market place.
* Resources should be made available to the Competition Authority for its proper functioning.
* A separate fund must be made available for generating awareness on competition issues.

Highlights

Various processes involved in comparative testing and their implications were explained in detail. Test programs involving research institutions and manufacturers, market surveys along with sampling and coding procedures were among the issues discussed.

Resolutions

* The workshop resolved in favor of preparing more kits to test product-reliability and identification at field level, conducting such tests in competent laboratories and disseminating results through mass media in simple language.
* Testing organizations are to be strengthened and popularized through magazines.
* Interactions with national and international standards body to be encouraged to update existing standards.
* Sale of foreign goods and services to be allowed as per foreign and domestic standards.

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