CONSUMER AFFAIRS FOOD AND PUBLIC DISTRIBUTION

1.       INTRODUCTION  

 The concept of consumer and consumer protection is not new to India. In fact, interest of consumers and public in general were safeguarded by the rulers and kings right from ancient times. The practices followed are reported to date back to 3000 BC, when the modern countries were not born and their names were not heard off. Such ancient practices are of great importance and need to be emphasized in the modern context also. Keeping the social fabric and economic status of the common man in view, the rulers and kings formulated several ethical, moral practices and some restrictions in the interest of consumers and / or buyers. These led to the building of a strong, harmonious and peaceful society in India, which has survived even after several foreign invasions and onslaughts. It is therefore desirable to reestablish those ideas and policies for a stable and harmonious society in the interest of not only our nation, but the whole mankind.

CONSUMER PROTECTION METHODS IN ANCIENT INDIAN SYSTEMS :

In ancient times, DHARMA was the guiding principle for human relations. The principles of DHARMA are mostly derived from the divine Vedas, which are considered to be GOD given. The divine laws of Dharma were transmitted to the society by the learned pious persons called ‘Rishis’. There were a large number of writers, preachers and communicators of this divine nature in different eras who contributed to the writings and sayings. These divine works are called Srutis (revelations) and Smritis (traditions). The Smruti and Sruti became the guiding principles to the rulers and kings. Various aspects related to ruling the subjects of the state are mentioned in them. They became the yard sticks for measuring the conformity to good governance of the society and the county. Consumer protection is one among them. Various texts and books are available on these aspects.

Among these texts and books, the following are very prominent.

1 Manu Smruti        ----------    written about      800 – 600 BC

2 Yagnavalka Smriti  ----------    written about     300 – 100 BC

3 Narada Smriti         ----------    written about     100 – 200 AD

4 Brihaspati Smriti    ----------   written about    200 – 400 AD

5 Kautilya Smriti    ----------     written about    300 – 600 AD

MANU SMRITI :

Manu Smriti specifies methods and measures related to affairs concerning markets. In view of political, social and economic conditions of the people, society and country, Manu prescribed a code of conduct in trade practices ( R ) and laid down the punishments to defaulters and adulators, who commit crimes against their customers.

ADULTERATION POLICIES :

In Manu Smriti, Mixing of one commodity with another and adulteration of commodities are treated as crimes. Under- weighing of articles is also considered a crime. Severe punishments are specified for such offences. In particular, seed adulteration and selling impotent seeds is considered to deserve the highest punishment, as these are perceived crimes which spoil agricultural produces and their quality. They also affect future agricultural prospects(R).

RULES OF TRADE CONTRACTS:

Rules and regulations are also specified for contracts and agreements in trade affairs. As per the formulated rules, disorderly persons, underage persons and convicted persons are not considered eligible for making trade contracts.

RULES FOR EXPORT OF GOODS :

There are specified rules for even export of goods and commodities. The goods and items specified by the state were not to be exported The king had the power to confiscate the properties of offenders / defaulters involved in such crimes.

PRICES OF COMMODITIES:

The prices of all marketable commodities and goods were fixed by the state. Variations from these invited punishment from the head of state, who would specify the sentence for such crimes. The list of marketable commodities was also fixed by the state. [In such crimes, the state head had the authority to confiscate the property of offenders]. Dishonest behavior with the customers and cheating of customers on the prices was also viewed seriously. There was constant vigil over the prices of commodities and weighing of commodities. For every six months, there were directions for inspection of the trade was to be carried out and proceedings of such inspections also to be recorded.

Thus, there is ample evidence of the state authority over the trade affairs to safeguard the interests of customers in all possible ways. Currently, we lack such rules.

KAUTILYA’S ARTHA-SASTRA :

Artha-Sastra is a book written by the great Indian administrator and teacher, who played a pivotal role in establishing the mighty Mauryan empire. The kingdom expanded from present Indian sub-continent to some countries separated from the sub-continent. To rule such a large area involving different local kings representing various languages and traditions is not an easy task. But, due to efficient governance capabilities of persons and administrators, it was made possible. With such a strong network of administration, India had become almost impeccable and foreign invaders dared not to show enmity towards India. All the practices of this administration are compiled into a book called ARTHA SASTRA written by Kautilya. The book is like a treatise and become a prominent source of information in administrative as well as economic aspects, besides being a guide for dealing with rights and duties of society(R). In this book, special mention is made on consumer affairs. The book specifies the role of the state in regulating the trade affairs and consumer rights. It is perhaps a first book of its type in the entire world history, but sadly, although the entire world has recognized it, successive Indian Governments after our independence have not reposed faith in it,

PERIOD  300 – 400 BC;

The rulers of this period have appointed directors for trade affairs; whose role was to monitor the market situation and enforce fair – trade practices. Their tasks included dealing with High value and low value commodities

• Popular and unpopular commodities

• Commodities derived from different sources like earth, water, forest etc.

• Suitable times for restoring to dispersion or concentration

• Controls on big profiteering trading which is injurious to subjects / markets

During this period, several measures were taken to maintain official stamping of weights and measurements used in those days.

WEIGHTS AND MEASURMENTS:

Weights and measurements are important aspects of consumer affairs as the consumer is prone to deceit by traders/businessmen. To avoid this, a superintendent of standardization was appointed. He monitored the establishment of factories to manufacture accessories necessary for the standardization of weights and measurement, making it a state affair.

• The superintendent was empowered to monitor stamping of weights and measurements.

• Inspection was made mandatory over a period of three/ four months.

• A trader was liable for penalties for using unstamped weights and measurements.

• Banned traders had to pay penalties.

PROHIBITION OF TRADE GUILDS:

Forming Trade guilds was considered an unhealthy practice for markets because they were thought of as some sort of middle men i.e. neither the producer nor the consumer. Due to presence of trade guilds, currently, markets are ruled by middlemen. To avoid this, the rulers then prohibited such agencies. They were thought to involve black marketing and other unfair trade practices.

• Punishments were awarded for different types of cheating and trade offences.

• Active vigilance was  kept on cheats with false cowry shields, dice etc

• For such type of offences, severe punishments including cutting of hands were also recommended.

• At the same time, interests of traders were also protected.

• Rules were also framed for dealing with cases of goods returned after purchase.

CHANDRA GUPTA MAURYA PERIOD:

During this period, the goods prepared/ produced at a particular place were not allowed to be sold at the place of origin. Instead, they were supposed to be carried to a particular market place. At that marketplace a dealer would examine the quality, quantity and then decide the rate of the item based on its merit. The process was recorded in a register/ book kept for this purpose.

• Then a trader from within and/ or outside place would come and seek permission.

• The superintendent of commerce would fix the wholesale price of the goods that entered the customs house.

• The superintendent would allow a marginal profit so that retail price could also be accordingly decided.

• Speculation and cornering to influence the price of commodities was prohibited.

All these aspects show that the state had full responsibility over commodity prices. Thus, consumer protection was fully assured in ancient systems. Now-a-days such practices are not seen. There was no scope for fraudulent trade transactions in those days.

• Severe punishments were awarded to smugglers and adulterators.

• Public health was guarded by all possible means. Those found guilty of adulteration of food products like grains, oil, alkali and salt were met with strict actions / punishments according to the law.

SAFEGUARDING OF CONSUMER RIGHTS :

Kautilya emphasized that, the head of state i.e., the king should look into the complaints of people at a suitable time, preferably in the second part of the day. The mobile and circuit courts worked during night times also, whenever the need arose. The courts were expected to work even on holidays in urgent cases(R). The king was expected to pay attention to bring out the truth and was held responsible for administering justice to the needy. The king was expected to entertain cases of aggrieved parties in case of valid complaints.

COURT OR JUDICIARY SYSTEM:

The judiciary system was well organized. There existed two different benches consisting of judges and magistrates to conduct trials in both civil as well as criminal cases.

In civil cases, the judges in their personal capacity were empowered to take cognizance of the cases of disadvantaged persons like women, under-aged persons, orphans, and people who may not be able to seek justice directly.

All these established systems suggest that ancient Indians were well versed with safeguarding of the interests of all categories of people in the society.

CONSUMER AFFAIRS IN MEDIEVAL PERIOD

The rulers of medieval periods both native as well as foreign origins largely confined to the ancient systems.

During the rule of Muslims:

• Large number of weights and measurements were used.

• Prices of commodities were determined by the appointed local people

• During the Khilji period also, severe stringent measures were initiated for curbing malpractices in consumer affairs.

STATE OF CONSUMER AFFAIRS IN BRITSH RULE:

The British replaced our age-old systems with unified nation-wide legal systems.

They imposed the British judiciary system on the local people.

 The acts promulgated were

• Contract Act - 1872

• Sale of Goods Act - 1930

• Indian Penal Code -  1860

• Drugs and Cosmetics Act -  1940

• Usurious Loans Act – 1937

POST INDEPENDENCE ACTS

• Essential Commodities Act - 1955

• Weights and Measurements Act -1976

• Consumer Protection Act-1986