15th March - World Consumer Rights Day

Protecting and Empowering Consumers

Dr. Sheetal Kapoor

March 15th is globally observed as World Consumer Rights Day, serving as a reminder of consumers' entitlement to protection against unjust trade practices and their right to access safe, high-quality products and services. This significant day traces back to March 15, 1962, when the then US President John F. Kennedy introduced the Bill of Rights in parliament, formally addressing consumer rights.

In his speech, President Kennedy remarked, "If a consumer is offered inferior products, if prices are exorbitant, if drugs are unsafe or worthless, if the consumer is unable to choose on an informed basis, then his dollar is wasted, his health and safety may be threatened and national interest suffers." The four fundamental rights he highlighted for American consumers were the(i) right to safety, (ii) right to choose, (iii) right to information and (iv) right to be heard.

Since that historic moment, Consumers International, a global membership organisation representing consumer groups with 200 member organisations across 100 nations, has commemorated March 15th as World Consumer Rights Day. This year, the theme for World Consumer Rights Day is "Fair and Responsible Artificial Intelligence for Consumers."

As marketing activities continue to expand, the dynamics of the relationship between consumers and sellers are undergoing a transformation. The validity of the age-old saying 'Consumer is King' is now a subject of debate in the current marketing landscape. On one side of the argument, consumers are endowed with scores of proconsumer legislations aimed at safeguarding their rights in the market, positioning them as the 'Kings of the Market.' The expectation is that marketers will furnish them with the appropriate products or services at fair prices and promptly address any issues that may arise.

However, the reality often diverges from this ideal scenario. In pursuit of maximising profits, sellers and manufacturers, at times, engage in practices that exploit consumers, creating a discord between the proclaimed consumer-centric ideals and the actual experiences of individuals in the marketplace. A recent study by ASSOCHAM revealed that 40% of Indians are not aware about how and where to file a complaint if the manufacturer gives them a sub-standard product or service. Even as we are in the second decade of the 21st century, the consumer movement in India remains in its early stages, necessitating significant encouragement to evolve into a widespread mass movement.

In a move to shield consumers from exploitation, a significant development in consumer advocacy was the introduction of the Consumer Protection Act, 1986 in India, later replaced by the Consumer Protection Act, 2019. This legislation sets up a legal framework dedicated to enhancing consumer protection by instituting a formal yet quasi-judicial dispute resolution mechanism exclusively for consumers. The forward-looking law establishes a three-tier quasi-judicial consumer dispute redressal system at the National, State and District levels, aiming to offer consumers simple, swift and cost-effective resolutions. Presently, the country has 678 operational District Commissions, 35 State Commissions and the apex-level National Commission.

Recent Developments in India's Consumer Protection Landscape

In the effort to combat misleading and deceptive advertising, the Central Consumer Protection Authority (CCPA), established under the Consumer Protection Act, 2019, has recently released draft guidelines for the prevention and regulation of greenwashing and misleading advertisements related to coaching institutes. These guidelines are currently open for public comments.

According to the draft guidelines, certified medical practitioners and health/fitness experts holding certifications from recognised institutions must openly disclose their credentials when sharing information, promoting products or services or making any health-related claims. This measure aims to improve transparency and credibility in the promotion of health and wellness.

When celebrities, influencers and virtual influencers position themselves as health specialists or medical practitioners and share data, endorse products or services or make health-related statements, they are required to include clear disclaimers. These disclaimers are crucial to prevent the audience from interpreting these endorsements as substitutes for professional medical advice, diagnosis or treatment. Instances have arisen where celebrities and influencers make bold claims, like endorsing a specific brand of tea as a cure for health issues. Similar misleading claims were observed during the COVID-19 pandemic, emphasising the need for caution and accuracy in health-related communications.

Influencers must make disclosures or disclaimers when discussing subjects such as health benefits, including those related to food items, nutraceuticals, ailment prevention, treatment or medication, medical conditions, recovery methods or immunity boosting. Such disclaimers should be prominently displayed during endorsements and communications involving health-related assertions.

It's important to note that general fitness and health advice, such as 'drink water and stay hydrated', 'exercise regularly and be physically active', 'reduce sitting and screen time', 'get enough good sleep', 'drink turmeric milk for faster recovery', 'use sunscreen daily for protection from harmful UV rays', 'oiling of hair for better growth', etc., not linked to specific products or services or not targeting specific health conditions or outcomes, are exempt from these regulations.

Additionally, celebrities, influencers and virtual influencers presenting themselves as health experts or medical practitioners should clearly differentiate between their personal views and professional advice. Making definitive health claims without evidence is discouraged and consumers are advised to consult their doctors for complete information about products or services before using them.

Greenwashing-related Draft Guidelines

"Greenwashing" is characterised as a deceptive or misleading practice that involves concealing, omitting or hiding pertinent information. This is achieved by exaggerating, using vague, false or unsubstantiated environmental claims. It includes the use of misleading words, symbols or imagery, where the emphasis is placed on positive environmental aspects while downplaying or concealing harmful attributes.

The draft guidelines for prevention of greenwashing incorporate the following aspects:

·         These guidelines are applicable to all advertisements, regardless of their form, format or medium. They also extend to service providers, advertisers, endorsers, etc., associated with the advertisement. However, they do not cover advertisements or communications that are not specific to any product or service.

·         Individuals to whom these guidelines apply are prohibited from engaging in greenwashing practices.

·         Environmental claims and the use of generic terms like clean, green, eco-friendly, eco-conscious, carbon-neutral, etc., must not be employed without sufficient evidence and substantiation. Marketers are required to be truthful and accurate in their claims. For instance, asserting that packaging is made from 100% recycled materials or making claims like "energy-efficient technology for a greener tomorrow!" without verifiable evidence or certification may be deemed misleading.

·         All environmental claims in advertisements or communications must be fully disclosed. Comparative environ-mental claims, which compare one product/service to another, must rely on verifiable and relevant data that is disclosed to consumers. These disclosures should be easily accessible and should not contradict relevant claims.

·         Aspirational or futuristic environmental claims should only be made when clear and actionable plans are in place detailing how those objectives will be achieved. Claims such as recyclable or biodegradable without proper evidence to substantiate them would be considered ambiguous.

Draft Guidelines for Coaching Institutes

Coaching institutes are often found engaging in deceptive practices in their advertisements, such as using names, photos, testimonials or videos of successful candidates without their express consent, offering 100% job guarantees or presenting false testimonials and reviews. These practices are considered misleading and coaching institutes shall be deemed to engage in misleading advertisements if they employ any of the following tactics:

·         Withholding crucial information related to the course's name (whether free or paid), the duration of the course chosen by successful candidates or any other significant details that could impact a consumer's decision to opt for their services.

·         Making false claims about success rates, the number of selections or rankings of students in any competitive exam without providing verifiable evidence.

·         Falsely implying that students' success is solely attributed to the coaching without acknowledging the individual efforts of the students. It is necessary to clearly state the extent of the coaching institute's involvement in the students' success.

·         Creating a false sense of urgency or fear of missing out that may intensify anxieties among students or parents.

·         Employing any other practices that may mislead consumers or undermine consumer autonomy and choice.

Fair and Responsible AI for Consumers

As we commemorate World Consumer Rights Day 2024 under the theme 'Fair and Responsible AI for Consumers,' it is crucial to emphasise the need for consumers to verify all communications from online sources. With the rise in AI-supported cyber frauds utilising copied voices and faces, it is essential for consumers to exercise vigilance, given the growing number of reported crimes.

'Deepfake,' a product of digital manipulation using Artificial Intelligence, refers to counterfeit media digitally manipulated to convincingly replace one person's likeness with another. This technology, employing deep generative methods, raises concerns about cyber frauds and unfair trade practices, particularly in videos where individuals can be cloned effectively. Common scenarios involve requests for money or false credit notifications through SMS messages, resembling communication from banks. In such cases, consumers should verify the caller and information, avoiding hasty actions like sending money through online links.

In the event of cyber frauds, consumers can report incidents to the National Cyber-Crime Helpline at 1930 or the National Consumer Helpline at 1915. Additionally, they have the option to pursue mediation or file a case in consumer courts established under the Consumer Protection Act, 2019.

Under the Information Technology Act and its rules, provisions exist to protect individuals' data privacy. If a deepfake video violates an individual's privacy by using their likeness without consent, the victim can file a complaint under this Act. Section 66 D of the IT Act deals specifically with the penalty for deception by impersonation using a computer or laptop, imposing imprisonment of up to three years and a fine of up to Rs. 1 lakh on offenders. The government is also planning to introduce a new law to regulate deepfakes, including penalties for creators and social media platforms.

The Information Technology Intermediary Rules mandate that social media intermediaries exercise due diligence regarding privacy policies or user agreements. They are required to inform users not to host content that impersonates another person. Furthermore, upon receiving a complaint about such content, intermediaries should remove or disable it within 24 hours if it involves impersonation on an electronic platform, including artificially morphed images of an individual.

Conclusion

The Consumer Protection Act, 2019 is a benevolent social legislation laying down the rights of the consumers and promoting and protecting them. It enables ordinary consumers to secure less expensive and speedy redressal of their grievances. By defining the rights and remedies of the consumers in a market so far dominated by organised manufacturers and traders of goods and providers of various types of services, the Consumer Protection Act makes the dictum, caveat emptor ('buyer beware') a thing of the past. As the nature of frauds, especially in the online landscape, is growing, consumers need to remain alert and aware about it. Our vigilance as consumers can save us from falling prey to the malpractices of sellers and help in saving our hard-earned money.  

(The author is Professor, Department of Commerce, Kamala Nehru College, University of Delhi. Feedback on this article can be sent to feedback.employmentnews@gmail.com)

Views expressed are personal.