A Very Brief History of Consumer Protection in India
A Brief History of Consumer Protection in India
The recent passage of the Consumer Protection Act of 2019 on July 30th in
the Rajya Sabha, has brought renewed public attention to the evolution of protections
afforded to consumers in India. According to an article written by Dr A
Rajendra Prasad, writing in the “Journal of Consumer Law, Texas, USA, there
have been a variety of texts that have ruled on consumer protection, such as
the “ Smriti’s” particularly the Manu Smriti (said to be written between
800 and 600 BC) which prescribed a code of conduct for traders and specified
punishments for crimes against buyers.
The Shodganga an online reservoir of theses, also refers to
the emergence of guilds during the Buddhist period and their role in shaping
business practices and setting standards.
Dr Prasad goes on to cite “Kautilya’s Arthasastra” (circa
400-300 BC) which focused on Public Administration was written during
Chandragupta’s reign. Kautilya is better known as Chanakya. The Arthasastra also
addressed consumer protection in some detail. There was in that time an individual
who served as a “Director of trade.” This worthy was tasked with monitoring the
market and was responsible for fair trade practices including the standardization
of weights and measures. Traders were licensed and travelling traders had to
apply for a permit.
According to Yajnavalkya (II, 251-53) the king was to
fix the price of commodities allowing five percent profit on indigenous goods
and ten percent on foreign products.
During the Muslim Delhi Sultanate (1206 to 1526) the
Sultan typically specified grain prices and enforced consistency in weights and
measures.
During the Mughal period, many rulers were interested
in the social and moral development of the people/ “Mohtasibs” or censors of
public morals were responsible for keeping an eye on public behavior. During
the later Mughal period, beginning with Akbar, commerce greatly expanded. The
kingdom was self-sufficient in most areas and the highly mobile Banjara
community would trade the surpluses from various communities.
The British tried to combine British law with local
tradition. Laws relating to Consumer Protection include: The Indian Penal Act
of 1860, The Indian Contract Act of 1872, the Usurious Loans Act of 1918 and
the Drugs & Cosmetics Act (1940) are a small sample of the legislation
supporting consumers that was produced during the British era.
Independent India also produced its share of
legislation including the Industries (Development and Regulation) Act (1951),
The Drugs & Magic Remedies (Objectional Advertisements) Act and the
Prevention of Adulteration Act (both in 1954), The Essential Commodities Act
(1955), Trade & Merchant Marks Act (1958), the Monopolies & Restrictive
Trade Policies Act (1969).
The Consumer Guidance Society (CGSI) an organization that
advocated for consumers was set up in 1966. The CGSI also had a role to play in
the formation of the first Consumer Protection Act which was passed in 1986 with
an amendment that closed certain loopholes passed in 1993. They also have a
monthly magazine called Keemat ( http://cgsiindia.org/wp-content/uploads/2019/06/Keemat-July-August-2019.pdf
). The Consumer Protection Act was updated again in 2019 to include
restrictions on celebrity endorsements and better cover online issues.
No comments:
Thanks for stopping by and caring enough to comment.Anyone with a Google account can comment.
Also, please subscribe to this blog if the content pleases you.