Modern history tells us that consumers’ organizations were started in Denmark in 1947 and in Great Britain in 1955, where the respective Governments created Consumer Councils to assist consumers to express themselves on issues related to producers and traders.
However, according to a Sri Lankan stone inscription found in Badulla written in the 10th century by King Udaya IV, Sri Lanka had consumer protection regulations long before the Westerners. The stone has 47 to 58 lines written on each of its four sides. According to Dr.Senarath Paranawithana, the scripture contains: (1) Rules relating to penalty imposition, (2) Government officers, (3) Trading policy and (4) Consumer Rights.
Rights
The United Nations categorizes consumer rights as: the right to satisfaction of basic needs; safety; to be informed; choose; be heard; redress; consumer education as well as a healthy and sustainable environment. Comparative studies in other countries point out that the role of popular bodies such as non-governmental organizations (NGOs) has in recent years increased considerably as they are widely engaged in activities aimed at promoting the rights of consumers.
A comprehensive law to support consumers and the existence of a legal authority to implement it are two features of successful economies. In our country, however, though we do have a reasonably strong consumer law and a legal authority, the absence of a dedicated voice of the consumers to safeguard their interests has negated the effects of the law.
This failure stems from weak action by consumers due to their apparent unawareness of the rights they possess. Most of our consumers have not realised that they have a right to ensure they get what they deserve from producers and retailers. Unfortunately, though Sri Lanka is the first country in Asia to recognise and enact consumer laws, the country doesn’t have a strong independent consumer protection movement with adequate powers (such as the Consumer Guidance Society of India) to protect consumer rights.
Education
To protect their rights consumers should, first, be fully aware of those rights. Consumer education, therefore, should be a fundamental right. It is, one of the eight basic rights recognized internationally.
In this regard, this writer believes there need to be a continuous series of educational programmes on TV, Radio, Newspapers, Web-based sites and other media. The TV and Radio can broadcast a one-hour weekly programme by getting the authorities and consumers meet-up and discuss. The newspapers can dedicate half a page every week for this purpose. A few sites run by independent and not-for-profit organisations would also be helpful.
Consumer education should be a continuous process and all media can help.
Seller’s role
Marketers and manufactures too, have an important role in protecting consumer rights. Consumers exercise power by choosing the items they wish to buy, but they do not choose from a blank canvas. Marketers are the expert interpreters and persuaders. For example, food marketers have a head start because consumers are increasingly reliant on food marketing. Many people do not cook from scratch, relying instead on cooked or made ready-to-cook foods.
Consumers need information that is honest, accurate and accessible to make informed choices. Marketers have the prime responsibility to provide information to the public, thereby protecting their rights.
However, there are other management gurus who argue that marketers do not have the prime responsibility to protect consumer rights. They see responsibility lying within a tripartite web consisting of, the marketer, consumer and legislation. Of the three, the consumer has the most responsibility and the marketer the least.
The main reason for this, they say, is that marketers have a different and overriding prime responsibility, to their organizations and brands. It is important for marketers to promote brand loyalty by staying within the law (avoiding publicity and brand damage for falling outside the law) and making the consumer feel he is protected. This responsibility is a subsidiary element to the marketer’s main role.
Law
Consumers are protected by law, but they are not meek pawns sandwiched between the might of big business and government legislation. The consumer is to a large extent ‘king’ and therefore, must take responsibility himself.
Consumers can do a number of things. They need to take advantage of the growth in the availability of information to educate themselves about products, the products of competitors, the risks involved in purchasing certain goods and services, as well as by reading the ‘small print’. The 21st Century and the growth of the Internet mean, in theory we have a more competitive market to choose from than ever before.
This information results in an incredible amount of market power. One individual by himself cannot make much impact, and that is where consumer groups and organizations step in. Consumers can also complain directly to the marketers, and if it fails, take legal action through the Consumer Authority.
At the same time, proactive law-making should step in when market forces do not work. It should provide business leaders the certainty with which they need to operate and in turn protect the consumer from unforeseen perils.
In the past 30 years we have seen important legislation to bolster the bargaining position of consumers in areas of product safety, unfair consumer terms, food labelling, guarantees, rules on distance selling and data protection.
Legislation such as this shows how the law, not the marketer, is the main player. It protects the consumer to a far greater extent and with far greater certainty than marketers could do.
By promoting best standards, legislation not only protects the consumer from nefarious marketers and vendors but also allows only the best marketers to survive. Legislation must work on a level playing field: it cannot choose to protect only vulnerable consumers nor impact only on the unscrupulous end of the business market.