
Safeguarding
consumer rights
By
Nantoo Banerjee
If
it is socially
undesirable and
physically harmful for
kids to use cell phones,
why are the cellular
mobile phone operators
and their ad agencies
being allowed to use
children to market their
network? If the cigarette
and liquor ads are banned
under the law, how is it
that the makers of both
these harmful consumer
products are allowed to
use their popular brand
names to market other
products on the sly and
advertise them freely in
order to retain the image
of the original tobacco
and liquor brands in the
minds of the consumers?
Aren't such practices,
known as surrogate ads,
killing the very purpose
of banning the liquor and
cigarette advertisements?
Why are the cosmetics
manufacturers allowed to
indiscriminately market
skin fairness creams
without the certification
of registered
dermatologists'
associations or the drug
control administration of
the Government? Why are
the so-called health
drinks manufacturers
allowed to make atrocious
claims of invigorating
impact of such drinks on
children's growth and
energy? Why is the drug
control administration
silent on the tall claims
being made by the
manufacturers of certain
over-the-counter drugs,
especially those for
cough and cold, fever and
headache?
The
tactics adopted for the
marketing and advertising
of products and services,
including non-consumer
items, are increasingly
bordering on lies and
fraud. Millions of
innocent consumers are
falling prey to these
advertisements and
unethical marketing
practices mostly by
well-known multinational
corporations and their
local rivals taking undue
advantage of the current
deregulation regimen. The
disease is spreading in
the other spheres of
business as well, selling
variety of products and
services ranging from
housing apartments,
building materials such
as cement and steel,
water purifiers, white
and brown goods,
automobile, education,
healthcare, banking and
insurance products and
tours and travels. It
seems the concept of the
free market economy has
arrived in its worst form
in India. The newly freed
India Inc. seems be
concerned only with its
top line and bottom line.
The concept of value has
been replaced by volume.
The talks of business
ethics and corporate
morality exist only in
B-School curriculum. On
ground, the volume
pushers call the shots
with the help of a bunch
of unscrupulous marketing
and advertising
professionals, playing
more with the passion,
emotion and sentiments of
consumers than the
intrinsic value of the
products and services. So
much is said about the
sinful exploitation of
poor children working as
carpet weavers, tea stall
workers or domestic help.
But, no one seems to be
bothered about the
reckless use of rich and
middle-class children in
advertising campaigns -
to catch subscribers for
a particular cell-phone
network to market edible
oil, detergents, motor
car, housing and even
insurance and public
issue of shares - and
shamelessly exploit the
sentiments of consumers.
In Western countries, the
home of these MNCs and
their ad agencies, the
use of children in ad
campaigns for unrelated
products and services is
strictly banned.
The
latest judicial verdict
in Delhi's Uphaar cinema
tragedy, in which scores
of people watching a film
were burnt alive in an
accidental fire in the
absence of an otherwise
mandatory fire escape
system in the building,
let the promoters of the
theatre escape unhurt
with only a two-year jail
sentence or nominal fines
or both because of the
inadequacy of the
existing law to offer
more deterrent punishment
to such violators of
building construction
rules. The builders, the
Ansal group, are among
the largest in the
country. In another case,
one of the largest
construction groups of
eastern India, linked
with a giant cement
manufacturing company,
lured investors to own
apartments in a luxury
housing complex promoted
by it in Kolkata through
a sustained ad and
marketing campaign for
months which proved to be
a lie. The company
collected huge amounts
from the apartment owners
as one-time maintenance
fee for life. Not only
the company failed to
keep its promise after
collecting all the
advance maintenance
deposits, but it even
changed the building
plans midway in
contravention of the
original offer document
or brochure. There are
any number of such
unlawful acts being
carried out with impunity
by even well-know
builders in the absence
of a strong regulatory
body for the housing
promotion industry in aid
of the consumers, who are
forced to spend time and
money for legal recourse
often with frustrating
results as in the Uphaar
killing case.
To
make the economic reforms
work for the benefit of
the common man, it is
high time the Government
take an immediate
initiative to help set up
industry-wise regulatory
bodies with strong teeth
to penalize the offenders
more as a deterrent to
fresh offences than an ex
post facto measure after
the harm has already been
committed and the
consumers have suffered.
Some industries like the
advertising and market
promotion, which is at
the core of misleading
consumer communication,
have self-regulatory
mechanism to deal with
consumer and industry
complaints against ads
that are considered as
false, misleading,
indecent, illegal,
leading to unsafe
practices, unfair to
competition and
consequently in
contravention of the
Advertising Standards
Council of India (ASCI)
code for self-regulation
in advertising.
Unfortunately, such
self-regulatory bodies
perform merely a
recommendatory function
and soft towards big and
influential members. It
deals more with industry
complaints than with
consumer grievances. To
get a flavour of the
types of companies
against which ASCI's
consumer complaints
council (CCC) upheld
complaints during the
first quarter of 2007
include such big names as
Coca-Cola India, Dabur
India, Cadila Healthcare,
Kellog India, Cadbury
India, LG Electronics,
General Motors, Inox
Leisure and Lux Hosiery.
The nature of complaints
suggests that they came
from their rival
companies rather than
genuine consumers. The
complaints concerned
mostly with misleading
claims by the
manufactures in media ads
about their products
which affected their
rivals in terms of sales
volume.
The
longer the Government
takes to put strong
regulatory authorities in
place for all those
deregulated sectors
touching the every day
life of the common man,
the more it will benefit
the unscrupulous, the
volume pushers and the
profiteers at the cost of
the consumers. It is a
matter of shame that the
Government took nearly 20
years to decide on the
need for a regulatory
authority for the tobacco
industry. According to
the Union Health
Minister, Anbumani
Ramadoss, himself a
physician, "40 per
cent of all health
problems in India is due
to tobacco use."
India is the world's
third largest tobacco
consumer and producer,
550 million kilos
annually. The country
earns nearly $ 9 million
from tobacco exports per
year. Almost one million
people die in India every
year owing to
tobacco-aggravated
causes. The Union
Government alone spends
nearly Rs. 360 million a
year for treatment of
tobacco-related diseases.
Even then the Government
failed to regulate the
industry, a big source of
its excise revenue,
because of a strong
pro-tobacco lobby within
itself. It would appear
that the country's
experiment with the free
market economy has left
its governance with a
bunch of business
lobbyists without
scruple. (IPA Service)
Gujarat
elections
By
Kalyani Shankar
The
Congress and the BJP are
playing for high stakes
in the Gujarat Assembly
elections. The results
will have a crucial
bearing on the future of
the two big parties
leading the UPA and the
NDA respectively. Both
are using all the tricks
in their bags to win the
elections. A win in
Himachal Pradesh and
Gujarat would take the
BJP to new heights. For
the Congress, it would be
a turning point if it
manages to win Gujarat
after 12 years. Political
pundits see the Gujarat
outcome as a precursor to
the Lok Sabha polls.
Gujarat
Assembly elections in
2007 are different from
the 2002 polls in many
ways. Five years ago, the
NDA was ruling at the
Centre. The Sangh Parivar
was fully backing Modi.
Godhra was fresh in the
minds of the people of
the state as well as the
country. The BJP allies
were not too enthusiastic
to campaign for Modi.
Pollsters predicted doom
for Narendra Modi.
Despite
all this, Modi was able
to connect with the
people and won the state
with a handsome majority.
Modi was the main
campaigner then and Modi
is the main campaigner
now. But who was his
target? He did not talk
of Godhra, or the Muslims
or Hindutva. He was
concentrating on
Musharraf bashing. The
Congress was unable to
match his oratory or the
electoral management by
BJP leader Arun Jaitley.
Above all, the
Hindu-Muslim polarisation
went against the
Congress.
In
2007, things are
different. The NDA lost
power in 2004 Lok Sabha
polls. The Congress-led
UPA is ruling at the
Centre for the past three
and a half years. Modi's
arrogant style of
functioning has alienated
him from the Sangh
parivar. Modi's
popularity is on the wane
within his own party. He
has much to fear from his
own party leaders like
Keshubhai Patel. The BJP
is facing a leadership
crisis at the national
level. Vajpayee is more
or less out of the scene.
Advani wants to be the
prime ministerial
candidate. BJP president
Rajnath Singh has not
proved himself so far.
The second generation
leaders, including Modi,
are waiting for the
generational change.
On
the plus side, Modi has
remained chief minister
for full five years.
There has been no
communal clashes since
Godhra. His election
speeches today are on
development and not on
Musharraf. Modi is
seeking votes for his
performance. He is
popular among the urban
middle class. If Modi
wins the state for the
BJP even with a smaller
majority, he is bound to
become the icon of the
BJP and also may move to
national politics.
Retaining Gujarat will
give him enormous clout
within the party and also
outside. The party would
get a morale boost after
its recent humiliation in
U.P Assembly polls. The
cadres will get enthused
and work better for the
next Lok Sabha elections.
The allies too will
remain if the Gujarat
result goes in BLP's
favour. It will set the
trend for the Lok Sabha
polls. The pollsters are
now predicting that he
may win with a reduced
majority.
If
Modi loses, his enemies
within the party and
outside would be happy.
While his personal loss
is understandable, the
party too would suffer.
It would be doubly so if
the BJP does not gain in
the neighbouring Himachal
Pradesh.
What
about the Congress? The
party, which has remained
out of power for the last
12 years in Gujarat,
needs to do better.
Congress strategists are
hoping for a re-run of
the anti-Modi campaign in
2004 Lok Sabha elections
which saw the BJP lose
strongholds like Amreli.
The BJP won just 14 out
of 26 Lok Sabha seats.
The allies like the NCP
are with the Congress.
Congress strategists are
also hoping to gain from
the internal rebellion
against Modi. It is
hoping for a better
showing in the tribal
belt. The Congress is
also trying to woo two
large support groups of
Modi- the Kohlis and
Leuva Patels who have
moved away from him.
Above all, the anti-
incumbency factor may go
in favour of the
Congress.
One
of the reasons why left
parties are exercising
restraint against the
Congress is Gujarat
polls. They do not want
to weaken the Congress in
Gujarat by pulling out of
the UPA government before
the polls. They are keen
to get Modi defeated.
That is why the left
parties have softened
their stand.
The
Congress, like the BJP,
has concentrated on
Gujarat polls for quite
some time and has
stationed observers in
each district. Money and
manpower are being
utilised to its full
extent. The Congress
strategists have even
accommodated rebel BJP
candidates which may or
may not help the party.
The biggest advantage for
the Congress is vigorous
campaigning by Congress
president and son, Rahul
Gandhi.
Sonia
is practical and knows
that it is not easy to
win the state. But
victory would be a big
morale-booster not only
for her but also for the
party; The Congress is
still licking its wounds
from the humiliating
defeat in the U.P. polls
despite the good public
meetings and road shows
by Sonia Gandhi and Rahul
Gandhi. It will be a test
for newly appointed AICC
General Secretary Rahul
Gandhi to show that he
can be a crowd puller as
well as a vote-catcher.
Many
in the party think that
the Congress can become
bolder in dealing with
its allies after a good
showing in Gujarat and
may call the bluff of the
Left patties. There could
even be mid-term polls if
things go the Congress
way.
Gujarat
elections are bound to
change the course of
national politics
whichever way the voters
decide. (IPA Service)
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