STRATEGIC PLAN
2011-15
Department of Consumer Affairs
Krishi Bhawan, New Delhi-110001
Department of Consumer Affairs
INDEX
Chapter No. / Contents / Page No.Introduction / 1
1. / Vision, Mission, Objectives and Functions / 2-5
2. / Assessment of the situation / 6-8
3. / Outline of the Strategy / 9-11
4. / Implementation Plan / 12-20
5. / Linkage between Strategic Plan and RFD / 21
6. / Cross departmental and cross functional issues / 22-23
7. / Monitoring and Reviewing programmes / 24-25
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Introduction
1.The strategic Plan for 2011-15 devised by Department of Consumer Affairs, Government of India with the long time perspective outlook aims to achieve the targets fixed as per the vision of the this Department within the specified time frame.
2.Government of India is undertaking Performance Monitoring and Evaluation System (PMES) for all Government Departments. Under PMES, each Department is required to prepare a Results-Framework Document (RFD). RFD is the instrument to implement strategy and convert Departmental vision into reality. The Strategic Plan exercise will identify clear priorities which will lead to time-bound action plans (based on projected capacities, capabilities and resources) with anticipated results and processes for monitoring the progress and conducting evaluation.
3.Accordingly, the Department of Consumer Affairs have made the exercise for devising Strategic Plan for 2010-15 in consonance with the targets / success indicators fixed in the Result-framework Document for successful implementation for achieving the targets fixed.
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Section 1: VISION, MISSION, OBJECTIVES AND FUNCTIONS
VISION
1.Our vision is to protect the rights and interests of consumers, to spread awareness about consumer rights, duties and responsibilities and to promote consumer welfare by strengthening consumer movement in the country.
MISSION
1.1We will fulfill our mission through progressive consumer related legislations and effective implementation of various consumer welfare schemes. Active participation of State Governments, academic and research institutions, schools and voluntary organizations will be sought to create a vibrant consumer movement in the country. Strict parameters regarding consumer products will be developed and enforced along with regular monitoring of prices to ensure the sovereignty of consumers.
1.2OBJECTIVES
1.To empower consumers by making them aware about their rights and responsibilities.
2.To provide effective, inexpensive and speedy redressal system to Consumers.
3.To strengthen the infrastructure on Consumer Fora through computerization and computer networking across the country.
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4.To augment the infrastructure of enforcement machinery of Legal Metrology Department of States/UTs andimplementation of The Legal Metrology Act, 2009
5.To make National Test House(NTH) more self sustaining.
6.To Strengthen National Test House (NTH) laboratories and installation of MIS.
7.Efficient Regulation of Commodity Futures Markets.
8.To strengthen Forward Markets and Forward Markets Commission.
9.To formulate Standards & Strengthen Conformity Assessment of Products and Services.
10.To Monitor Prices of Essential Commodities.
11.To regulate Essential Commodities.
12.To assist Consumers by giving advice and guidance in Consumer related issues through National Consumer Helpline and State Consumer Helplines functioning in States/UTs across the country.
13.To implement various schemes and programmes under Consumer Welfare Fund to create awareness on Consumerism, to protect and promote the interests of Consumers.
14.To educate and sensitize the Consumers to know about their rights and responsibilities through continuous Publicity campaigns
15.To create avenues for Consumers for settlement of Consumer related cases through Mediation process involving Voluntary Organisations and settlement of Grievances
16.To dispose off all Grievances and Complaints through a well established Grievances Redressal Mechanism
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1.3FUNCTIONS
a) CONSUMER PROTECTION
The Deptt. of Consumer Affairs endeavours to protect and promote the rights of consumers through strict
- Implementation of Consumer Protection Act, 1986
- Protection of rights and rendering justice to Consumers through National Consumer Disputes Redressal Commission (NCDRC) / District/State level Forums.
- Testing, and quality evaluation of products through
National Test House (NTH).
iv. Implementation of the Standards of Weights and Measures
Act, 1976.
v. Regulation of Packaged Commodities and implementation
of new Act namelyThe Legal Metrology Act, 2009.
b) CONSUMER AWARENESS
- Jago Grahak Jago Multimedia Campaign.
- Effective and continuous Publicity awareness campaigns
c) SETTING STANDARDS
Implementation of Bureau of Indian Standards Act, 1986.
Quality management and Standards formulation and
certification.
d) REGULATION OF ESSENTIAL COMMODITIES
i.Implementation of Essential Commodities Act, 1955.
ii. Implementation of Prevention of Black Marketing &
Maintenance of supply of Essential Commodities Act, 1980.
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e)CONSUMER COOPERATIVES
i. National Consumer Cooperatives Federation (NCCF).
ii. Super Bazaar.
f) COMMODITY EXCHANGES
i.Regulation of Commodities futures through ForwardMarket Commission.
ii.Implementation of Forward Contract (Regulation) Act, 1952.
g) MONITORING OF PRICES OF ESSENTIALCOMMODITIES
i.Monitoring of prices and availability of essential commodities.
ii. Availability of Pulses.
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Section 2 : ASSESSMENT OF THE SITUATION:-
2.External Factors:-
2.1 Awareness of consumer rights is very poor especially among the population in rural and far-flung areas of the country. It also varies in different regions in the country.Compared to the developed countries, the levels of consumer awareness in such a vast country with a large population like India is much lower. This is rooted in economic inequality, low levels of literacy and ignorance. Because of this, consumers are not able to assert their rights and on many occasions are exploited by the trade and industry and service providers. Protecting and promoting the welfare of consumers has thus become one of the major concern
Educating more than 110 crore people of various categories of population particularly those in rural areas where consumers are more susceptible to exploitation, on various subject matters on consumer interests which are being dealt by different Ministries/ Department, is a gigantic task that can only be undertaken as a sustained national programme with adequate funds made available for the purpose.
Globalisation and liberalisation of trade and business has resulted in many products and services being available to the consumers. Growth in economy has resulted in increase in the purchasing power of the middle class section, which is the largest segment of the population. This has necessitated giving high priority for the protection of the consumers and promotion of responsible consumer movement in the country.
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The necessity of import substitution and export promotion for building up a sound economy and fiscal base in the country- and lack of adequate industrial testing facilities in the country has necessitated improved adoption of Indian Standards by industry, large scale purchasing organisations, statutory bodies and universities.
2.2With the gradual withdrawal of the government from various sectors in the post-liberalization era, the need has been felt that various operators in the commodities market be provided with a mechanism to hedge and transfer their risks. India's obligation underWTO to open agriculture sector to world trade would require futures trade in a wide variety of primary commodities and their products to enable diverse market functionaries to cope with the price volatility prevailing in the world markets.
2.3Several factors such as increased demand due to economic growth, shortfall in domestic prices of essential commodities, increase in MSP and bonus, hardening of international prices, changes in consumption pattern and loss of crop due to natural factors have resulted in increase in price of essential commodities.
2.4 Stakeholders:-The mandate of this Department is to undertake measures for consumer protection, by creating awareness among people, speedy dispute redressal system and provide for quality products and services. Our stakeholders in this Mission are basically consumers themselves who need to be educated and re-educated,Business organisations that can do a lot by putting in place an in-house
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Consumer grievances redressal mechanism, and be responsive to consumers, and the various Consumer organisations and academic institutions and research organisations who can supplement the efforts of the Government and could be vehicles for effective launch of a massive consumer movement in the country. Lastly we require the help of State governments in efficiently implementing various programmes at grassroots level.
2.5 Strengths and weaknesses:
The Department is small one compared to the task it has at hand. All activities affect the consumer finally in some way or other. As per Allocation of Business
there are different ministries undertaking activities which has a direct bearing on consumer. There is no mandatory system to get prior clearance of this department before any new scheme or project is initiated.
Consumer protection is still of a lower priority among the State governments. As a result sufficient funds are not allocated for infrastructure and other recurring expenditure. This affects implementation of schemes.
2.6Learning agenda:-
(i)Need to understand and find out the basic deficiencies in the enforcement of CP Act 1986 especially in the functioning of Consumer Fora and the councils at Sate and Dist. Level
(ii)Enforcement of BIS standards and bringing more products and services under mandatory regime
(iii)Uniform implementation of weights and measures and uggrading of Regional labs to National accreditation status
(iv)Understand best practices in other countries in providing consumer protection, product safety, ADR procedures.
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Section 3 OUTLINE OF THE STRATEGY:-
3. Potential Strategies:
Amending the important Acts administered by the Department and thereby bringing in provisions in tune with the time and necessitated by changes in economy, trade and business and consumer expectations is the basic strategy the Department.
It is also proposed to come up with National Consumer policy which will enable this Department to effectively coordinate and intervene in the functions of those Departments which has a consumer inter-phase.
Streamlining the functioning of State departments, and other line organisations and agencies is another area which is being looked into.
Effective communication being the means for wider impact, novel methods of awareness campaign is an area where is lot of innovation possible.
Utilisation of IT tools in furthering improvement of the redressal system making it more efficient and transparent is being acted upon
3.1 Engaging Stakeholders:-
Meetings of the Central Consumer protections Council, periodical workshops with various stakeholders like consumer organisations, academic and law institutions, training &research institutions and representatives of State governments and conference of State commission Presidents and Members provide ample opportunity to interact and understand the issues/ problems and take measures
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to mitigate them. Similarly media committee meets periodically to discuss new ideas and assess the impact of publicity measures undertaken.
3.2 Building knowledge and capabilities:-
Bringing consumer interest in focus in all government and private sector decisions need to be the main focus of the Department. To that end the best practices being followed by other countries could be successfully implemented here after tailoring them to fit to our situation. Appropriate amendments to the Acts bringing them in tune with the time and plugging loopholes is also a priority concern. The impact of various activities undertaken on consumer satisfaction need to assessed periodically to learn from them and undertake mid course corrections/ modifications if necessary. Associating State governments in a major way in implementing the programmes is of utmost importance.
3.3 Priorities:-On the basis of our experience and appraisal and feed back mechanism, we have formulated our Strategic Plan prioritising the targets as under:-
Promote a socio economic movement 10
which seeks to protect the consumer tights.
Create an administrative and legal mechanism 12
including ADR which would be would be fast and
efficient and within the reach of Consumers.
Engage media, civil society,organisations and 08
business houses in enhancing awareness
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Use of information technology tools 08
for improved performance.
Streamlining the legal provisions through 15 appropriate changes in the CP Act.
Setting up/ upgrading industrial testing labs. 10
Regulate Future Commodity markets. 09
Building a climate for quality culture and 10 consciousness and greater participation of Consumers
in formulation and implementation of National Standards
Setting up of State Consumer Helplines in all 08
States/UTs and networking across the country
as a major Grievances Redressal Mechanism
Continuous Price Monitoring and regulate 10
Essential commodities
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Section 4 IMPLEMENTATION PLAN:-
4.Consumer Grievance Redressal
Consumers need an inexpensive and quick grievance redressal mechanism to ensure that manufacturers and service providers are accountable for the price and quality that the consumers are entitled to. Accordingly, it is necessary to provide several methods of grievance redressal including those which are available in accordance with the provisions of the Consumer Protection Act. Thus, mediation or in-house grievance redressal should be tried, but without giving up the right of the consumer to obtain legal redress. With this focus, the Department of Consumer Affairs seeks to implement the strategic plan through-
Amendment of Consumer Protection Act to make it more effective and tuned to reducing the backlog of cases.
Computerisation and Networking of consumer fora across the country so that consumers can file complaints and access their case status online.
Setting up mediation mechanism at pre-litigation stage and so as to reduce the burden of consumer courts and resolve disputes through out of court settlements.
Provision of adequate infrastructure to Consumer fora so as to make them function effectively.
Consultation with different stakeholders such as State govts., VCOs, Apex industry associations, media etc.
Make the entire district fora and state commissions computerised and operational.
Rs 32 cr. provided for 2011-12 to continue the activities initiated in 11th Plan.
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4.1CONSUMER AWARENESS:
In a world of informationasymmetry the government has the responsibility to redress this imbalance. In the Government of India, the Department of Consumer Affairs is the focal point for difference Departments and organizations to make the consumers aware of market realities as well as the rights of the consumers and the manner in which they can educate themselves and also enforce their rights. Accordingly, the Jago Grahak Jago campaign has become immensely popular and is now being used by several Departments to communicate with consumers. From the response received through the Consumer Helplines as well as the evaluation of the progress, it is now clear that there has been a huge impact on account of this programme. Accordingly, the programme will continue to be a major activity of the Department. New themes and communications strategies would be incorporated in the actual campaigns that are run under the programme. Thus, the following would be the elements of the strategic plan in this area of activity :-
Continuation of Multi Media Publicity Campaign under the tag line ‘Jago Grahak Jago’.
A Focussed Campaign addressing the emerging areas such as education, telecom, travel services, banking, insurance, medicines etc.
Activation of the Multi Media campaign active coordination and liaisoning with other Government Departments that have consumers as a major inter face as part of their functional area.
Continuous and coordinated execution of the multi media publicity campaign with the implementing mechanism i.e. DAVP, DD, AIR and the other Government.
Constant monitoring and review the publicity campaign through a high powered Empowered Committee under the chairmanship of Secretary, Department of Consumer Affairs and a Multi Media Committee under the chairmanship of Joint Secretary with representation for DAVP, DD, AIR.
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4.2PROMOTING VOLUNTARY CONSUMER ORGANIZATIONS AND
INSTITUTIONALISING CONSUMER FEEDBACK
The work of consumer awareness is so vast that it obviously cannot be done by Government and Government agencies alone. It is necessary to actively involve the Voluntary Consumer Organizations in this effort. This can be done directly by the Government of India as well as through State Governments and Educational/Research Institutions. Accordingly, the Department has been promoting the VCOs as well as the State Governments through different projects essentially aimed at improving consumer awareness. In the light of the experience gained so far, the Department aims to carry this process forward in the following manner :-
Efforts to expedite setting up of State Consumer Helpline in remaining 12 States/UTs.
Creation of a network system across the country interlinking all State Consumer Helplines with the active support of Indian Institute of Public Administration (IIPA) through their new innovative project namely `State Consumer Helpline-Knowledge Resource Management Portal’ (SCHKRMP).
Creation of general awareness and give guidance and advice to the Consumers for sorting out their day to day Consumer related issues through their local dialect/regional language Helplines.
Involving Research Institutes and LawUniversities to continue research studies on Consumerism with an objective to strengthen Consumer movement.
Impressing upon the State Governments,UTs,Research Institutes , and active Voluntary Organisations through various schemes under Consumer Welfare Fund for creation of awareness focussing mainly on rural areas.
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Advising and assisting all States/UTs to set up “States Corpus Fund” with the financial support of Department of Consumer Affairs within the specified time frame.
4.3STANDARDIZATION AND CONFORMITY ASSESSMENT
The importance of standards is growing day by day. The need to ensure safety and protect the health of the consumers is an essential function of Government since it is obvious that the market cannot do this on its own. The Bureau of Indian Standards Act was passed in 1986 and has not been amended since then. It would not be possible to adapt to the changed world without amending this Act. Therefore, the core of the strategy in this are is to amend the Act to bring in several innovations and improvements in the manner in which standards are formulated popularized and where necessary, enforced. Accordingly, the strategy in this area would comprise of the following elements :-
Implementation of schemes to popularise and widen the process of standardisation and providing training to various stakeholders
Amendment of the BIS Act for removal of restrictions imposed by reference to “Scheduled Industry”.
Introduction of self declaration of adherence to the relevant Indian Standards as an alternative mechanism to compulsory licencing.
Introduction of Hallmarking of precious metal articles under compulsory certification regime.