Mahatma Gandhi, the Father of the Nation, described the consumer as: 

“A customer is the most important visitor in our premises. He is not dependent on us, we are dependent on him. He is not an interruption in our work, he is the purpose of it. He is not an outsider to our business, he is part of it. We are not doing him a favour by serving him, he is doing us a favour by giving us an opportunity to do so.” 
 

I. Preamble  

1.1 The rationale behind the National Consumer Policy stems from Article 39 of the Constitution of India which has enshrined the Directive Principles to be followed by the State to ensure all-round welfare of the citizens of the country. The basic premise of the National Consumer Policy is to ensure that goods, services and technology are available to consumers at reasonable prices and acceptable standards of quality. There is a consumer dimension in almost every area of governance, and therefore a need to take into consideration consumers’ interests in all policy decisions and implementation thereof. The National Consumer Policy seeks to provide guidelines to different branches of the Government and agencies at all levels in maintaining the appropriate consumer dimension while taking any step or decision which will have an impact on consumers’ interests. 

1.2 In view of complexity of the market place and technology and impact of liberalisation, the consumer needs to be protected. In the past, there was the system of barter and consumers did not have to choose from a large range—the allocation of resources was simpler. However, the situation has changed considerably. With the growth and dominance of the market place, consumers’ interests and protection have taken a back seat. The perfect market place is a myth, and an economist’s dream. 

1.3.  Faced with this reality the United Nations debated and adopted the Guidelines for Consumer Protection in 1985.  These Guidelines also call upon the member governments to develop, maintain and strengthen a strong consumer policy, and provide for enhanced protection of consumers by enunciating various steps and measures. In 1995, the Guidelines were reviewed, and some issues, which needed further elaboration and expansion, were espoused by consumer organisations. Among the issues are access to basic needs, appropriate regulatory policies, sustainable consumption etc. 

1.4  India also adopted a consumer protection legislation—Consumer Protection Act in 1986 (COPRA) which recognises the following six rights of consumers: 

• Safety:  The right to be protected against the marketing of goods and services which are hazardous to life and property. 
• Information:  The right to be informed about the quality, quantity, potency, purity, standard and price of goods or services, as the case may be, so as to protect the consumer against unfair trade practices.
• Choice:  The right to be assured, wherever possible, access to a variety of products and services at competitive prices.
• Representation:  The right to be heard and to be assured that consumer’s interests will receive due consideration at appropriate forums.
• Redressal:  The right to seek redressal against unfair trade practices or restrictive trade practices or unscrupulous exploitation of consumers.
• Consumer education:  The right to consumer education.

1.5 Furthermore, from the U.N. Guidelines for Consumer Protection, 1985, two other rights of consumers are inferred: 

• Basic needs:  The right to basic goods and services which guarantee dignified living. It includes adequate food, clothing, health care, drinking water and sanitation, shelter, education, energy and transportation. 
• Healthy environment:  The right to a physical environment that will enhance the quality of life. It includes protection against environmental damage. It acknowledges the need to protect and improve the environment for future generations as well.

1.6 To promote accountability, transparency and good governance the National Consumer Policy seeks to encourage all ministries, departments and other bodies, government and non-government, to adopt “Citizens’ Charters” that will spell out the standards of service available to consumers and citizens. 
 

II. Objectives  

2.1 The Constitution of India seeks to ensure for its citizens—social, economic and political justice. However, as consumers face imbalances in economic terms, education levels and bargaining power, the National Consumer Policy aims to promote and protect consumer rights for just, equitable and sustainable economic and social development. 

2.2 Taking into account the needs of and priorities for consumers the objectives of the National Consumer Policy thus are to: 

1. Strengthen production and distribution patterns which are responsive to the needs of consumers, and with the goal of promoting sustainable consumption on an equitable basis; 
2. Advocate and promote ethical conduct, transparency, consumer participation and responsiveness in the choice of appropriate technology and environmental responsibility in providing goods, services and technology to consumers at all levels; 
3. Promote the development of market conditions which provide consumers with appropriate choices at fair prices and right quality, and lesser burden on the environment; 
4. Promote assessment of consumer impact in every area of governance where consumer interests are affected; 
5. Promote participation of consumers in every area of governance, particularly in the Panchayati Raj system; 
6. Promote adoption of Citizens’ Charters for greater accountability and transparency in governance; 
7. Encourage policies and programmes to enable sustainable production and consumption patterns; and 
8. Promote regional and international co-operation in the field of consumer protection, sustainable consumption and production patterns. 

III.  Principles  

3.1    The policy intends to: 

1. Empower consumers to have access to the basic needs of life; 
2. Protect consumers from hazards to their life and safety; 
3. Enhance the access of consumers to adequate information to enable them to make informed and environmentally benign choices according to individual as well as societal needs; 
4. Promote consumer education through formal as well as non-formal education systems so as to help consumers in their decision making; 
5. Promote accountability and transparency through adoption of Citizens’ Charters; 
6. Provide expeditious and inexpensive system of delivery of justice; 
7. Promote an independent consumer movement in the country by providing assistance to consumer and other relevant groups to form their organisations and giving them the opportunity to present their views in the decision-making process. 
8. Initiate and implement appropriate mechanisms for exchange of information on measures of consumer protection, nationally, regionally and internationally. 

3.2 Bearing in mind the costs and benefits of proposed measures, the economic, social, cultural and technological diversity of the country, and the needs of its population, evolve time bound programmes for the protection of consumers. 
 

IV. Measures  

4.1 These measures will apply to indigenously produced goods, services and technology as well as to imports. 

4.2 Physical safety:  Protect consumers from hazards to their life and safety: 

1. Enhance the adoption of national as well as international standards for the safety and quality of goods, services and technology; and 
2. Encourage and build capacity of consumer organisations to carry out testing of essential consumer goods and dissemination of information. 

4.3 Information: Access of consumers to adequate and reliable information: 

1. Government, business and voluntary organisations should develop and strengthen consumer information programmes to encourage people to act as discriminating consumers.  Special attention is to be given to the development of mass media programmes to cater to the needs of the disadvantaged consumers; 
2. Enhance the access of consumers to adequate information to enable them to make informed and environmentally benign choice of goods, services and technology according to individual as well as societal needs; and 
3. Encourage formulation, adoption and wide dissemination of  Citizens’ Charters in all ministries, department and bodies of govenment, business and cooperative sectors to increase awareness, accountability and transparency. 

4.4 Choice:  Promote and protect consumers’ interests to make informed choice of goods, services and technology: 

1. Strengthen measures to prevent restrictive and unfair business/trade practices which are harmful to consumers and the environment; and 
2. Develop, maintain and strengthen a fair competition policy with a view to provide consumers with appropriate range of choice of goods, services and technology at the lowest prices. 

4.5 Representation:  Represent consumers’ view in the decision-making process: 

1. Provide and strengthen representation to consumer organisations in  the decision-making process of the Government at all levels as well as business and co-operatives; 
2. Promote and encourage an independent consumer movement in the country by providing help to consumer groups to form their organisations and giving them the opportunity to present their views in the decision-making process; and 
3. Encourage formulation, adoption and wide dissemination of Citizens’ Charters in all ministries, departments and bodies of govenment, business and cooperative sectors to increase representation, accountability and transparency. 

4.6 Redressal:  Expeditious and inexpensive consumer redressal system: 

1. Strengthen legal and administrative measures to enable individual consumers, consumers as a class and consumer organisations to obtain redressal through quasi-judicial procedures; and 
2. Encourage consumers to take recourse to alternative dispute resolution systems such as arbitration, conciliation and /or ombudsmen schemes. 

4.7 Consumer education:  To help consumers in their decision making: 

1. Promote consumer education as an integral part of the formal education system at primary, secondary and college levels; 
2. Encourage business to undertake publication of consumer educational material for mass distribution; and 
3. Enable consumer organisations to undertake capacity building programmes for consumers, activists and others. 

4.8 Basic needs:  Access of consumers to basic goods, services and technology: 

1. Strengthen measures to ensure access of consumers to basic goods and services of acceptable quantity which include adequate supply of basic goods like food and clothing, and utility services like health care, drinking water and sanitation, housing, education, energy and transportation; and 
2. Encourage the establishment and strengthening of consumer co-operatives and related trading activities as well as information about them, especially in rural areas. 

4.9 Healthy environment:  Sustainable production and consumption patterns: 

1. Develop and strengthen environmental testing of products and dissemination of information through governmental institutions, media and consumer organisations; and 
2. Encourage consumer organisations to review the implementation of environmental regulations by providers of goods, services and technology and verification of environmental safety claims. 

4.10 International exchange of information on consumer protection:  

1. Initiate and implement exchange of information on measures of consumer protection, regionally and internationally; and 
2. Encourage consumer organisations to participate in information exchange programmes with international organisations. 

V. Monitoring and Evaluation  

5.1 In view of economic, social, cultural and technological diversity of the country, it is essential to adopt and strengthen monitoring and evaluation mechanisms by involving consumer and other groups, and business in the process of implementation of the aforesaid measures to achieve the objectives. 

5.2 COPRA provides for establishment of the Central Consumer Protection Council at the national level and state consumer protection councils at state and union territory headquarters.  Furthermore, to establish an apex National Consumer Policy Coordination Council with the Prime Minister as its chairperson, so that consumer protection issues receive the highest consideration in every area of governance.