AL-FALAH University, Faridabad, HR.

Class Notes ...... Consumer Protection Unit-III Prepared By: Irshad Ahmad , Asst. Prof. Deptt. of Management Studies, AFU, Faridabad.

The Monopolistic and Restrictive Trade Practices Act

Introduction

The Monopolistic and Restrictive Trade Practices Act, 1969, was enacted

1. To ensure that the operation of the economic system does not result in the concentration of economic power in hands of few,

2. To provide for the control of monopolies, and

3. To prohibit monopolistic and restrictive trade practices.

The MRTP Act extends to the whole of India except Jammu and Kashmir.

Unlessthe Central Government otherwise directs, this actshall notapply to:

1. Any undertaking owned or controlled by the Government Company,

2. Any undertaking owned or controlled by the Government,

3. Any undertaking owned or controlled by a corporation (not being a company established by or under any Central, Provincial or State Act,

4. Any trade union or other association of workmen or employees formed for their own reasonable protection as such workmen or employees,

5. Any undertaking engaged in an industry, the management of which has been taken over by any person or body of persons under powers by the Central Government,

6. Any undertaking owned by a co-operative society formed and registered under any Central, Provincial or state Act,

7. Any financial institution.

Restrictive Trade Practice

A restrictive trade practice is a trade practice, which

1. Prevents, distorts or restrictscompetitionin any manner; or

2. Obstructsthe flow of capital or resources into the stream of production; or

3. Which tends to bring aboutmanipulation of prices or conditionsof delivery or effected the flow of supplies in the market of any goods or services, imposing on the consumers unjustified cost or restrictions.

INQUIRY INTO RESTRICTIVE PRACTICES

The Commission may inquire into any restrictive trade practice

1. Upon receiving a complaint from any trade association, consumer or a registered consumer association, or

2. Upon a reference made to it by the Central or State Government or

3. Upon its own knowledge or information

RELIEF AVAILABLE

The commission shall if after making an inquiry it is of the opinion that the practice is prejudicial to the pubic interest, or to the interest of any consumer it may direct that

1. The practice shall be discontinued or shall not be repeated;

2. The agreement relating thereto shall be void in respect of such restrictive trade practice or shall stand modified.

3. The Commission may permit the party to any restrictive trade practice to take steps so that it is no longer prejudicial to the public interest

However no order shall be made in respect of

1. any agreement between buyers relating to goods which are bought by the buyers for consumption and not for ultimate resale;

2. a trade practice which is expressly authorised by any law in force.

Unfair Trade Practice

WHAT IS UNFAIR TRADE PRACTICE ?

An unfair trade practice means a trade practice, which, for the purpose of promoting any sale, use or supply of any goods or services, adopts unfair method, or unfair or deceptive practice.

Unfair practices may be categorised as under:

1. FALSE REPRESENTATIONThe practice of making any oral or written statement or representation which:

i. Falsely suggests that the goods are of a particularstandard quality, quantity, grade, composition, style or model;

ii. Falsely suggests that the services are of a particularstandard, quantity or grade;iii. Falsely suggests any re-built, second-hand renovated, reconditioned orold goods as new goods;

iv. Represents that the goods or services have sponsorship, approval, performance, characteristics, accessories, uses or benefits which they do not have;

v. Represents that the seller or the supplier has a sponsorship or approval or affiliation which he does not have;

vi. Makes a false or misleading representation concerning the need for, or the usefulness of, any goods or services;

vii. Gives any warranty orguaranteeof the performance, efficacy or length of life of the goods, that isnot based on an adequate or proper test;viii. Makes to the publica representationin the form that purports to be-

a warranty or guarantee of the goods or services,

a promise to replace, maintain or repair the goods until it has achieved a specified result,

if such representation ismaterially misleadingor there is no reasonable prospect that such warranty, guarantee or promise will be fulfilled

ix. Materiallymisleads about the pricesat which such goods or services are available in the market; or

x. Gives false or misleading facts disparaging the goods, services or trade of another person.

2. FALSE OFFER OF BARGAIN PRICE-Where an advertisement is published in a newspaper or otherwise, whereby goods or services are offered at a bargain price when in fact there is no intention that the same may be offered at that price, for a reasonable period or reasonable quantity, it shall amount to an unfair trade practice.

The bargain price, for this purpose means-

i. the price stated in the advertisement in such manner as suggests that it is lesser than the ordinary price, or

ii. the price which any person coming across the advertisement would believe to be better than the price at which such goods are ordinarily sold.

3. FREE GIFTS OFFER AND PRIZE SCHEMESThe unfair trade practices under this category are:

i. Offering any gifts, prizes or other items along with the goods when the real intention is different, or

ii. Creating impression that something is being offered free alongwith the goods, when in fact the price is wholly or partly covered by the price of the article sold, or

iii. Offering some prizes to the buyers by the conduct of any contest, lottery or game of chance or skill, with real intention to promote sales or business.

4. NON-COMPLIANCE OF PRESCRIBED STANDARDSAny sale or supply of goods, for use by consumers, knowing or having reason to believe that the goods do not comply with the standards prescribed by some competent authority, in relation to their performance, composition, contents, design, construction, finishing or packing, as are necessary to prevent or reduce the risk of injury to the person using such goods, shall amount to an unfair trade practice.

5. HOARDING, DESTRUCTION, ETC.Any practice that permits the hoarding or destruction of goods, or refusal to sell the goods or provide any services, with an intention to raise the cost of those or other similar goods or services, shall be an unfair trade practice.

6. INQUIRY INTO UNFAIR TRADE PRACTICESThe Commission may inquire into

Any unfair trade practice

i. Upon receiving a complaint from any trade association, consumer or a registered consumer association, or

ii. Upon reference made to it by the Central Government or State Government

iii. Upon an application to it by the Director General or

iv. Upon its own knowledge or information.

7. RELIEF AVAILABLEAfter making an inquiry into the unfair trade practice if the Commission is of the opinion that the practice is prejudicial to the pubic interest, or to the interest of any consumer it may direct that

i. The practice shall be discontinued or shall not be repeated;

ii. The agreement relating thereto shall be void in respect of such unfair trade practice or shall stand modified.

iii. Any information, statement or advertisement relating to such unfair trade practice shall be disclosed, issued or published as may be specified

iv. The Commission may permit the party to carry on any trade practice to take steps to ensure that it is no longer prejudicial to the public interest or to the interest of the consumer.

However no order shall be made in respect a trade practice which is expressly authorised by any law in force.

The Commission is empowered to direct publication of corrective advertisement and disclosure of additional information while passing orders relating to unfair trade practices.

Monopolistic Trade Practices

A monopolistic trade practice is one, which has or is likely to have the effect of:

1. maintainingthepricesof goods or charges for the servicesat an unreasonable levelby limiting, reducing or otherwise controlling the production, supply or distribution of goods or services;

2. unreasonably preventing or lessening competitionin the production, supply or distribution of any goods or services whether or not by adopting unfair method or fair or deceptive practices;

3. limiting technical developmentorcapital investmentto the common detriment;

4. deteriorating the qualityof any goods produced, supplied or distribute; and

5. increasing unreasonably-

i. the cost of production of any good; or

ii. charges for the provision, or maintenance,of any services; or

iii. the prices for sale or resale of goods; or

iv. the profits derived from the production, supply or distribution of any goods or services.

A monopolistic trade practice is deemed to be prejudicial to the public interest, unless it is expressly authorized under any law or the Central Government permits to carry on any such practice.

INQUIRY INTO MONOPOLISTIC TRADE PRACTICES

The Commission may inquire into

Any monopolistic trade practice,

1. Upon a reference made to it by the Central Government or

2. Upon an application made to it by the Director General or

3. Upon it own knowledge or information

RELIEF AVAILABLE1. Where the inquiry by the Commission reveals that the trade practice inquired into operates or is likely to operate against public interest, the Central Government may pass such orders as it thinks fit to remedy or present any mischief resulting from such trade practice.

2. On an inquiry report of the Commission, the Central Government may-

i. Prohibit the owner(s) of the concerned undertaking(s) from continuing to indulge in a monopolistic trade practice; or

ii. Prohibit the owner of any class of undertakings or undertakings generally, from continuing to indulge in any monopolistic trade practice in relation to the goods or services.

3. The Central Government may also make an order:

i. Regulating the production, storage, supply, distribution, or control of any goods or services by an undertaking and fixing the terms of their sale (including prices) or supply;

ii. Prohibit any act or practice or commercial policy which prevents or lessens competition in the production, storage, supply or distribution of any goods or services;

iii. Fixing standards for the goods used or produced by an undertaking;

iv. Declaring unlawful the making or carrying out of the specified agreement;

v. Requiring any party to the specified agreement to determine the agreement within the specified time, either wholly or to specified extent;

vi. Regulating the profits which may be derived from the production, storage, supply, distribution or control of any goods or services; or

vii. Regulating the quality of any goods or services so that their standard does not deteriorate.

Powers of The Commission

The MRTP Commission has the following powers:

1. Power of Civil Court under the Code of Civil Procedure, with respect to:

i. Summoning and enforcing the attendance of any witness and examining him on oath;

ii. Discovery and production of any document or other material object producible as evidence;

iii. Reception of evidence on affidavits;

iv. Requisition of any public record from any court or office.

v. Issuing any commission for examination of witness; and

vi. Appearance of parties and consequence of non-appearance.

2. Proceedings before the commission are deemed as judicial proceedings with in the meaning of sections 193 and 228 of the Indian Penal Code.

3. To require any person to produce before it and to examine and keep any books of accounts or other documents relating to the trade practice, in its custody.

4. To require any person to furnish such information as respects the trade practice as may be required or such other information as may be in his possession in relation to the trade carried on by any other person.

5. To authorise any of its officers to enter and search any undertaking or seize any books or papers, relating to an undertaking, in relation to which the inquiry is being made, if the commission suspects tat such books or papers are being or may be destroyed, mutilated, altered, falsified or secreted.

The Competition Act

The Competition Act, 2002 was enacted by the Parliament of India It replaced the old Monopoly and Restrictive Trade Practices Act, 1969. Under this legislation, the Competition Commission of India was established to prevent activities that have an adverse effect on competition in India.Competition Act to provide, keeping in view of the economic development of the country, for the establishment of a Commission to prevent practices having adverse effect on competition, to promote and sustain competition in markets, to protect the interests of consumers and to ensure freedom of trade carried on by other participants in markets, in India, and for matters connected therewith or incidental thereto.Competition

A situation in a market, in which sellers independently strive for buyers patronage to achieve business objectives such as profits, sales or market share.

Objective of competition:

The ultimate objective of competition is to secure the interest of the Consumer - it empowers the consumer, best guarantee for consumer protection.

It is a means of reducing cost and improving quality.

It also implies an open market where shortages are rapidly eliminated through the best allocation of resources.

It accelerates growth and development; preserves economic and political democracy.Components of competition laws:

Anti-competitive agreement:Section 3 of The Competition Act 2002 deals with the anti-competitive agreements.

An agreement which adversely effect the competition. It includes but not limited to: -

1. Agreement which limit the production.

2. Agreement which limit the supply.

3. Agreement to allocate market.

4. Agreement to fix prices.

5. Agreement to collusive bidding.

6. Conditional purchase (Or tie-in-agreements)

7. Refusal to deal.

8. Exclusive supply agreement.

9. Exclusive distribution agreement.

10. Condition sale agreement to by second products as well compulsorily.

Following are not an Anti competitive agreements:

1. Agreement to Protect IPRs. Viz trademark, copyright or patent.

2. Agreement to protect geographical indications.

3. Agreement to Design Act.

4. Agreement to lay out designs for Act 2000.

5. Agreement to export goods (with certain conditions).

Types of agreement :Competition law indentifies two type of agreement. First Horizontal agreements which are among the enterprises who are or may compete within same business. Second is the vertical agreement which are among independent enterprise. Horizontal agreement is presumed to be illegal agreement but rule of reasons would be applicable for vertical agreements.

Abuse of Dominant Position:

1. It is the misuse of an advantageous position by an enterprise to gain extra benefits but which resultantly damage the consumer interest and make it difficult other players to compete.

2. Section 4 of Competition Act deals with abuse of dominant position.

It includes:- 3. Imposition of unjust conditions.

4. Imposition of unfair pricing.

5. Predatory pricing.

6. Create hindrance in entry of new operators.

7. Abuse of market positing.

Predatory Pricing:

Predatory pricing is some thing called pricing below then the cost of the product. The objective of pricing to elemenate the competition and then create dominant position in the market and put the price so high to recover the earlier losses. It is sort of abuse of dominant position. There are some methods in economics to establish that whether a pricing is predatory pricing or not. Once the predatory pricing is fixed then the CCI can pass a order that enterprise has abuse its dominant position in contravention of the competition act and pass the penal order for it.

Combination under Competition Act.:

Combination is legal concept of analyzing the merger, acquisition, acquisition of an enterprise by a person having shares/ right to vote with the completion business enterprise. There are threshold limits are defined viz 1500 Cr. For individuals in India. If such combination, merger amalgamation create adverse impact on competition or consumers at large then such combination it is prohibited by the competition law of India.

Notification:The desiring firm shall notify it is approval for combination to CCI within 30 days of such board resolution. CCI shall pass the order within 210 to give effect to such combination else it will deemed as approved after 210 days. In case such combination is not notified to CCI then CCI shall have powers to inquiry such combination within 1 years of merger. Notification is pre-requisite else there will be risk from legal behavioral aspect and may attract investigation and objection.

Cartel:

Cartel is the group of enterprises which collectively make some agreement which adversely effect the competition. The agreement between the cartel may be explicit or implicit. But it is restricted by the competition law due the reasons of artificial price hike, collusive bidding, competition law presumes the Cartel as injurious to competition. CCI has vide power to take the cartel in their cognizance and refer it to director general for investigation. It further provides the penalty provision upto three times of yearly profit to the offenders.

Bid rigging:

Competition law provides on more legal concept and that is Bid rigging. This terms used for any manipulation, conspiracy, infiltration etc which adversely affect the biding. Any agreement or consent among the prospective bidder which affect the bidding process and causes or likely to cause losses to the purchaser, is termed as bid rigging. Competition law prohibits bid rigging and lays down provisions for penalty for such practices.

Rule of reasons: It is the analysis of any activity under the challenge on the basis of business justification, competitive intent, market impact, impact on competition and on consumer. It is the logic behind the conclusion for any order.

Market Power:It is the power to control market pricing and restrict competition.

Competition Advocacy:

Competition advocacy is one of the most significant feature in the Act. It is the obligation of commission to create the awareness about the competition laws through non-enforcement measures. It also includes training programs, seminar, educational workshops.

Remedies under the competition laws of India

Competition Commission of India is the statutory body to approach for unfair competition practices. The relevant Act is Competition Act 2002 and its amendment act 2007. CCI has power to act suo-mot or on the reference from Government. Consumer can directly approach the CCI by filling an application with 5000/- prescribed fees in case of individual/huf/ngos. In case any case is made out then, on receipt of such application, the CCI shall refer it to Director General for opinion. Director General shall submit its report/finding to CCI for proper hearing and trial for the case.

About Fines & Penalty:The competition laws lays down heavy penalty of 10% of total turn over of preceding three years if any enterprises act or infringe the provision of competition act.

Consumer organization

Consumer organizations are advocacy groups that seek to protect people from corporate abuse like unsafe products, predatory lending, false advertising, and pollution.

Role of Consumer organizations:

Consumer organizations may operate via protests, litigation, campaigning, or lobbying.

One common means of providing consumers useful information is the independent comparative survey or test of products or services, involving different manufacturers or companies (e.g., Which?, Consumer Reports, etcetera). Another arena where consumer organizations have operated is food safety. The aim of consumer organizations may be to establish and to attempt to enforce consumer rights. Effective work has also been done, however, simply by using the threat of bad publicity to keep companies' focus on the consumers' point of view. Consumer organizations may attempt to serve consumer interests by relatively direct actions such as creating and/or disseminating market information, and prohibiting specific acts or practices, or by promoting competitive forces in the markets which directly or indirectly affect consumers (such as transport, electricity, communications, etc.).

Formation and Registration of Consumer organizationsThe consumer organizations

1) Trust2) Society3) Section-25 Company Additional Licensing/ Registration

I. TrustsA public charitable trust is usually floated when there is property involved, especially in terms of land and building.

Legislation :Different states in India have different Trusts Acts in force, which govern the trusts in the state; in the absence of a Trusts Act in any particular state or territory the general principles of the Indian Trusts Act 1882 are applied.

Main Instrument :The main instrument of any public charitable trust is the trust deed, wherein the aims and objects and mode of management (of the trust) should be enshrined. In every trust deed, the minimum and maximum number of trustees has to be specified. The trust deed should clearly spell out the aims and objects of the trust, how the trust should be managed, how other trustees may be appointed or removed, etc. The trust deed should be signed by both the settlor/s and trustee/s in the presence of two witnesses. The trust deed should be executed on non-judicial stamp paper, the value of which would depend on the valuation of the trust property.Trustees :A trust needs a minimum of two trustees; there is no upper limit to the number of trustees. The Board of Management comprises the trustees.

Application for Registration :The application for registration should be made to the official having jurisdiction over the region in which the trust is sought to be registered.

After providing details (in the form) regarding designation by which the public trust shall be known, names of trustees, mode of succession, etc., the applicant has to affix a court fee stamp of Rs.2/- to the form and pay a very nominal registration fee which may range from Rs.3/- to Rs.25/-, depending on the value of the trust property.

The application form should be signed by the applicant before the regional officer or superintendent of the regional office of the charity commissioner or a notary. The application form should be submitted, together with a copy of the trust deed.

Two other documents which should be submitted at the time of making an application for registration are affidavit and consent letter.

II. SocietyAccording to section 20 of the Societies Registration Act, 1860, the following societies can be registered under the Act: charitable societies, military orphan funds or societies established at the several presidencies of India, societies established for the promotion of science, literature, or the fine arts, for instruction, the diffusion of useful knowledge, the diffusion of political education, the foundation or maintenance of libraries or reading rooms for general use among the members or open to the public, or public museums and galleries of paintings and other works of art, collection of natural history, mechanical and philosophical inventions, instruments or designs.

Legislation :Societies are registered under the Societies Registration Act, 1860, which is a federal act. In certain states, which have a charity commissioner, the society must not only be registered under the Societies Registration Act, but also, additionally, under the Bombay Public Trusts Act.Main Instrument : The main instrument of any society is the memorandum of association and rules and regulations (no stamp paper required), wherein the aims and objects and mode of management (of the society) should be enshrined.

Trustees :A Society needs a minimum of seven managing committee members; there is no upper limit to the number managing committee members. The Board of Management is in the form of a governing body or council or a managing or executive committee

Application for Registration :Registration can be done either at the state level (i.e., in the office of the Registrar of Societies) or at the district level (in the office of the District Magistrate or the local office of the Registrar of Societies).(2)

The procedure varies from state to state. However generally the application should be submitted together with: (a) memorandum of association and rules and regulations; (b) consent letters of all the members of the managing committee; (c) authority letter duly signed by all the members of the managing committee; (d) an affidavit sworn by the president or secretary of the society on non-judicial stamp paper of Rs.20-/, together with a court fee stamp; and (e) a declaration by the members of the managing committee that the funds of the society will be used only for the purpose of furthering the aims and objects of the society.

All the aforesaid documents which are required for the application for registration should be submitted in duplicate, together with the required registration fee. Unlike the trust deed, the memorandum of association and rules and regulations need not be executed on stamp paper.

III. Section-25 CompanyAccording to section 25(1)(a) and (b) of the Indian Companies Act, 1956, a section-25 company can be established for promoting commerce, art, science, religion, charity or any other useful object, provided the profits, if any, or other income is applied for promoting only the objects of the company and no dividend is paid to its members.

Legislation :Section-25 companies are registered under section-25 of the Indian Companies Act. 1956.

Main Instrument :For a section-25 company, the main instrument is a Memorandum and articles of association (no stamp paper required)

Trustees :A section-25 Company needs a minimum of three trustees; there is no upper limit to the number of trustees. The Board of Management is in the form of a Board of directors or managing committee.

Application for Registration :1.An application has to be made for availability of name to the registrar of companies, which must be made in the prescribed form no. 1A, together with a fee of Rs.500/-. It is advisable to suggest a choice of three other names by which the company will be called, in case the first name which is proposed is not found acceptable by the registrar.

2.Once the availability of name is confirmed, an application should be made in writing to the regional director of the company law board. The application should be accompanied by the following documents:Three printed or typewritten copies of the memorandum and articles of association of the proposed company, duly signed by all the promoters with full name, address and occupation.

A declaration by an advocate or a chartered accountant that the memorandum and articles of association have been drawn up in conformity with the provisions of the Act and that all the requirements of the Act and the rules made thereunder have been duly complied with, in respect of registration or matters incidental or supplementary thereto.

Three copies of a list of the names, addresses and occupations of the promoters (and where a firm is a promoter, of each partner in the firm), as well as of the members of the proposed board of directors, together with the names of companies, associations and other institutions in which such promoters, partners and members of the proposed board of directors are directors or hold responsible positions, if any, with description of the positions so held.

A statement showing in detail the assets (with the estimated values thereof) and the liabilities of the association, as on the date of the application or within seven days of that date.An estimate of the future annual income and expenditure of the proposed company, specifying the sources of the income and the objects of the expenditure.

A statement giving a brief description of the work, if any, already done by the association and of the work proposed to be done by it after registration, in pursuance of section-25.

A statement specifying briefly the grounds on which the application is made.

A declaration by each of the persons making the application that he/she is of sound mind, not an undischarged insolvent, not convicted by a court for any offence and does not stand disqualified under section 203 of the Companies Act 1956, for appointment as a director.

3.The applicants must also furnish to the registrar of companies (of the state in which the registered office of the proposed company is to be, or is situate) a copy of the application and each of the other documents that had been filed before the regional director of the company law board.

4.The applicants should also, within a week from the date of making the application to the regional director of the company law board, publish a notice in the prescribed manner at least once in a newspaper in a principal language of the district in which the registered office of the proposed company is to be situated or is situated and circulating in that district, and at least once in an English newspaper circulating in that district.

5.The regional director may, after considering the objections, if any, received within 30 days from the date of publication of the notice in the newspapers, and after consulting any authority, department or ministry, as he may, in his discretion, decide, determine whether the licence should or should not be granted.

6.The regional director may also direct the company to insert in its memorandum, or in its articles, or in both, such conditions of the licence as may be specified by him in this behalf.

Self Regulation

Self regulation is a situation in which an industry, profession, etc. checks that its members act according to particular rules, rather than having this done by another organization.A self-regulatory organization (SRO) is an organization that exercises some degree of regulatory authority over an industry or profession. The regulatory authority could be applied in addition to some form of government regulation, or it could fill the vacuum of an absence of government oversight and regulation. The ability of an SRO to exercise regulatory authority does not necessarily derive from a grant of authority from the government.

Consumer awareness:Consumer awareness is about making the consumer aware of his/her rights. It is a marketing term which means that consumers are aware of products or services, its characteristics and the other marketing Ps (place to buy, price, and promotion).

In India, the concept of consumer protection is not new. References to the protection of consumers interest against exploitation by trade and industry, underweight and measurement, adulteration and punishment for these offences, were made in Kautilyas Arthashastra. However, an organized and systematic movement to safeguard the interest of consumers, is a recent phenomenon. The consumers have to be aware not only of the commercial aspects of sale and purchase of goods, but also of the health and security aspects. Food safety has become an important element of consumer awareness these days. In case of food products, its quality depends not only on its nutritional value, but also on its safety for human consumption. Consumption of contaminated or adulterated food is a major cause of human illness and suffering.

The Role of Media in Consumer Awareness

Media Formats

The types of media which can influence consumer awareness are more numerous than ever. Older media platforms, including newspapers, radio and television, are still available but have lost popularity since the advent of the Internet. Within the category of Internet media, a consumer finds respected sites such as web versions of print newspapers and government websites alongside opinion-based sites such as blogs and message boards. Advertising exists on nearly all media platforms, whether print, television or Internet, further bombarding the consumer with information that may or may not be accurate.

Effects of Media

As consumers turn more frequently to Internet sources for purchase advice, they're able to keep up with recent developments faster than ever. This means, for instance, that companies have the ability to use Internet media to distribute news of product recalls almost as soon as they know a recall is necessary. It also means that unfounded information can be distributed before reliable journalists have a chance to confirm it.

Responsibility

Journalists have the responsibility to practice the same ethics when publishing online that they use for print media, including double-checking facts and reporting without bias. Even though online media may seem less permanent than print, it actually reaches more consumers in a shorter time. Consumers have the responsibility to ensure any website they take advice from practices journalistic standards rather than simply publishes opinions. Government websites or online versions of print publications are good starting sources.

Considerations

Since online publishing is still new to many journalists in 2010, journalists are moving through a transition period as they learn to balance the techniques used for newspaper reporting with the new demands of Internet media. For example, in previous times, when a journalist found an error printed in one of his newspaper stories, he would run a correction in the next edition. Online, he has the opportunity to change the fact in the story, but he may be left wondering whether he needs to point out the change. Adding links to stories is another gray area, as journalists have to decide how much responsibility they bear for the accuracy of the websites they link to.

The Role of Government in Consumer Awareness

[1] Promote General Awareness of the rights of the consumer by encouraging consumer education and supplying information.[2] Publish periodical and product specific booklets, pamphlets, cassettes, CDs, slides, documentary films and other devices of mass communication for promoting consumer awareness in English and regional languages, highlighting the problem inspecified areas like real estate, public utilities, non-banking financial agencies etc.[3] Enlighten the business community on its ethical and legal obligations to maintain quality of the products or services and to be transparent in dealing with consumers.[4] Encourage consumer activities to strengthen the existing institutional set up of consumer dispute redressal by acting as a facilitator between consumer and the institution.[5] Study the available legal remedies, analyze and suggest new measures for the effective and better consumer protection.[6] Bring together the consumer, traders and policy makers to exchange information of mutual interest for better coordination. Bring together the NGOs/Consumer activities operating in different areas and equip them with suitable and required nformation and knowledge to enable them to act as nodal agents of change in rural areas.[7] Organize and conduct seminars, workshops and group discussions and thus provide a platform for threadbare discussion of the issues and evolve suitable remedial action. Conduct motivationalcampaigns for groups of potential customers both in urban and rural areas.[8] Coordinate programmes organized by Central and State Governments, State Legal Aid Authorities, Academic Institutes,National and International Consumer Organizations.[9] Periodic interaction with electronic & print media on success stories of consumers.[10] Establish links with educational institutions like universities, colleges, high schools to emphasize the need for improving consumer education in the curriculum. Consumer clubs which were started recently by the A.P. Consumer affairs, Food &Civil Supplies Dept. would go a long way in acheiving this.[11] Interact with national level organizations like NISIET, NIRD, ASCI etc. to explore possible collaboration and organize awareness programmes for their clientele and undertake research projects.[12] Organize a database enabling the consumer retrieve the required information in a less expensive and quick way. Set up awebsitehttp://scdrc.ap.nicto publish information, news including judgments, articles, on product analysis and related matters for the guidance of consumers to have informed choice of product services, redressal agencies and mechanisms.

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