Introduction An individual who buys products pro ducts or services for personal use and not for manufacture or resale. A consumer is someone who can make the decision whether or not to purchase an item at the store, and someone who can be influenced by marketing and advertisements. Mahatma Gandhi said, "A consumer is the most important visitor on our premises. He is not dependent on us, we are on him. He is not an interruption to our work; he is the purpose o f it. We are not doing a favour to a consumer by giving him an opportunity. He is doing us a favour by giving us opportunity to serve him. But, o f late, unfortunately cheating by way of o f overcharging, black .marketing, misleading advertisements, etc has become t he common practice of greedy sellers and manufacturers to make unreasonable pro fits. fits. In this th is context, it is the duty of the government to confer some rights on consumers to safeguard their interests Consumer awareness is about making the consumer aware of his/her rights. It is a marketing term which means that consumers co nsumers are aware of products or services, its characteristics and the other marketing P¶s (place to buy, price, and promotion).Though the first co nsumer movement began in England after the Second World War, a modern declaration about consumer¶s rights was first made in the United States of America in 1962, where four basic consumer rights r ights (choice, information, safety and to be heard) were recognized. Ralph Nadar, a consumer activist, is considered as the father of o f µconsumer movement¶. March 15 is now celebrated as the World Consumer Rights Day. The United Nations in 1985 adopted, , certain guidelines to achieve the objectives of maintaining protection for consumers co nsumers and to establish high level ethical conduct for those engaged in production pro duction and distribution of goods and services. Consumer protection laws are designed to ensure fair trade competition and the free flow of truthful information in the marketplace. The laws are designed to prevent businesses that engage in fraud or specified unfair practices from gaining an advantage over o ver competitors and may provide additional protection for the weak and those unable to take t ake care of themselves. Consumer Protection laws are a form of o f government regulation which aim to protect the MADs of consumers.
Concept of consumer protection: Consumer protection means safeguarding the interest interest and rights of consumers. In ot her Words, it refers to the measures adopted for the protection of consumers from unscrupulous and unethical malpractices by the business and to provide them speedy redressal o f their Grievances. The most common business malpractices leading to consumer exploitation are given below. (a) Sale of adulterated goods good s i.e., adding something inferior to the product being sold. (b) Sale of spurious goods i.e., selling something of little value instead of the real pro duct. (c) Sale of sub-standard goods good s i.e., sale of goods which do not confirm to prescribed quality standards. (d) Sale of duplicate goods. (e) Use of false weights and measures leading to underweight. (f) Hoarding and black-marketing leading to scarcity and rise in price.
(g) Charging more than the Maximum Reta il Price (MRP) fixed for the product. (h) Supply of defective goods. (I) Misleading advertisements i.e., advertisements falsely claiming a product or service to be of superior quality, grade or standard. (j) Supply of inferior services i.e., quality of service lower than the quality agreed upon. Need of the study The study states about the rights of o f the consumer where he can protect himself from the unfair trade practices. The necessity of adopting measures to protect the interest of consumers arises mainly due to the helpless position of the consumers. co nsumers. There is no denying fact t hat the consumers Have the basic right to be protected from the loss or injury caused on account of defective goods and deficiency of o f services. But they hardly use their rights due to lack of awareness, Ignorance or lethargic attitude.
Objectives Obj ectives of the study: 1. To study about the consumer protection movement in India. 2. To understand rights available to the consumers. 3. To study the role ro le of Bureau of Indian Standards (BIS) in spreading awareness and protecting consumers from unfair trade practices.
Need: However in view of the prevailing preva iling malpractices and their Vulnerability there to, it is necessary to provide them physical safety, protection of econo mic Interests, access to information, satisfactory product standard, and statutory measures for Redressal of their grievances. gr ievances.
Methodology: Research can be defined de fined as the search for knowledge or as any systematic investigation to establish facts. There are various ways to collect data. Primary Data which involves the co llection of data that does not already a lready exist, which is research to collect original data. This Th is can be through numerous forms, including questionnaire, d irect observation etc. the method select for present project is questionnaire method. Secondary research is also known as desk research. It can come from either internal or external source. The accuracy may lack in this method when compared to primary data but it is
economical and takes less time compared to it. The method selected for present project is through internet and newspapers. Sample
size:
The sample of the study is 50 . Sample
design :- Descriptive Sample design
Unit V Limitation: y
y
The sample size is small and thus the information collected may not be appropriate in all cases. Time constraints
Unit II CONSUMER MOVEMENT IN INDIA: Introduction: Consumers play a vital role in the eco nomic system of a nation because in the absence of effective demand that emanates from them, the economy virtually collapses. Mahatma Gandhi said, "A consumer is the most important visitor on our premises. He is not dependent on us, we are on him. He is not an interruption to our work, he is the purpose of it. We are not doing a favour to a consumer by giving him an opportunity. He is doing us a favour by giving us opportunity to serve him. But, of late, unfortunately cheating by way o f overcharging, black marketing, misleading advertisements, etc has become the common practice of greedy sellers and manufacturers to make unreasonable pro fits. In this context, it is the duty of the government to confer some rights on consumers to safeguard their interests.
In the year 1958, the Indian Standards Institute had arranged a convention at New Delhi. As per the resolution passed at the convention, the Consumers Association of India was established in 1959. In 1966, the Consumer Guidance Society of India was formed in Mumbai with the object to protect consumers against rising prices of essential commodities. In the same year o n 2nd, 1996, Council for Fair Business Practices was formed by leading industrialist like, J.R.D Tata and others. The Indian Consumer Union was established in 19 71. The activities of the union include offering legal advice, testing facilities, arranging lectures and seminars. The Co nsumer Education and Research Centre were formed in 1978, at Ahemadad, to guide and protect Consumer Rights. Consumer Co-operative Societies like Grahak Panchayat and Government Employees Consumer Stores, etc, are also formed to protect consumers. They make their purchases directly from producers and sell them at reasonable price to members. The growth of consumer movement in India is very slow due to several reasons such as, illiteracy of Indian consumers, general attitudes of the pu blic, lack of active support from political parties and other members of the soc iety. Only in urban areas like Mumbai, Delhi, Kolkata, etc, the consumer movement is gaining some prominence. There is hardly any consumer movement in rural areas.
HISTORY
OF CONSUMER MOVEMENT IN INDIA
India has an ancient history of consumer protection. Consumer protection was part of ancient culture and formed the co re of its administration. But the introduction of boundless commercialization of activities eclipsed the old rich heritage. As in Europe, in India also the origin of the Consumer Movement was in the form of Consumer co-operative India has an ancient history of consumer protection. Consumer protection was part of its ancient culture and formed the co re of its administration. Kautilya's 'Arthasasthra' was the basic law of ancient India and the same was strengthened with provisions to protect consumers. Sale of commodities was organised in such a way that general public was not put to any trouble. If high profits (for the ruler) put general public in trouble, then that trade activity was stopped immediately. For traders, profit limit was to be fixed. Even for services timely response was prescribed; e.g. for sculpturist, carpenter, tailor, washerman, rules for the protection of co nsumer interest were given. Thus, for a washerman, it was said that he should return washed clothes in a given time period, i.e., light coloured o nes in five days, blue dark coloured in 6 days and silken, woollen or embroidered in 7 days. Failing this they had to pay fine. The Superintendent of Commerce was to supervise weights and measures. For shortfall in weighinglmeasuring, sellers were fined heavily. Weights and measures used in trade were manufactured only by the official agency responsible for standardization and inspected every foui months. Sellers passing off inferior products as superior were fined eight times the value of art icles thus sold. For adulterated things, the seller was not only fined but also compelled to make good the loss.
CONSUMER MOVEMENT IN THE MODERN PERIOD: Consumer movement in the present form came into being only in the 1930's in the West and only in the 60's in India. The basic objectives of consumer movement world wide are as follows : To provide opportunity to the consumers to buy intelligently Recognition of reasonable consumer requests Protection against fraud, misrepresentation, unsanitary and unjust products Participation of consumer representatives in management o f aspects affecting consumers Promoting consumers interests The basic reason for the development of consumer movement in India are different from those in the West. In western countries, consumer movement was the result of post-industrialisation affluence-for more information about the merits of competing products and to influence producers especially for new and more sophisticated pro ducts. In India, the basic reasons for the consumers movement have been: Shortage of consumer products; Adulteration and the Black Market. Lack of product choices due to lack of development in technology Thrust of consumer movement in India has bee n on availability, purity and prices y y y y
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The factors which stimulated the consumer movement in recent years are: Increasing consumer awareness
Declining quality of goods and services Increasing consumer, expectations because of consumer education Influence of the pioneers and leaders of the consumer movement Organized effort through consumer societies
Stages
of Development of the Consumer Movement
The Consumer Movement today is undergo ing a silent revolution. The movement is bringing qualitative and quantitative changes in the lives of people enabling them to organise fhemselves as an effective force to reckon with. But the path to reach t his stage has not been easy. It has been a struggle against bad business which always put profit before fairness in transactions. The first stage of movement was more representational in nature, i.e., to make consumers aware of their rights through speeches and art icles in newspapers and magazines and holding exhibitions.The second stage was direct action based on boycotting of goods, picketing and demonstration. However, direct action had its own limitations, that led to the third stage o f professionally managed consumer organisations. From educational activities and handling complaints, it ventured into areas involving lobbying, litigation and laboratory testing. This gave goo d results. Thus, for instance business sector has started taking notice and co-operating with the movement. It has played a . role in hastening the process of passing the Consumer Protection Act, 1986 which has led to the fourth stage. The Act enshrines the consumer rights and provides for setting up of quasi-judicial authorities for redressal of consumer duputes. T his act takes justice in the socio-economic sphere a step closer to the common man.
Achievements of Consumer movement : Some interesting developments which are helping the consumer movement include, Developments taking place in the field of consumer education and some noticeable Changes that have place among business organizations and their associations or Federations. Consumer Protection is being incorporated in the co urses at different levels In schools and colleges. Full-fledged courses have been introduced in management and Law courses. A number of large organizations have set up Consumer Grievance Cells as an in-house Redressal mechanism. Life Insurance Corporation of India (LIC) has set up claims Review committees at the zonal and ce ntral levels. Petroleum Companies, Railways, Banks, Income Tax Departments, have also initiated setting up of public grievance cells. The Government of India has set up a separate Directorate called Directorate of Public Grievances at Sardar Pate1 Bhavan, Sansad Marg, New Delhi. They deal with complaints relating to hawks, railways, insurance, pensions and re lated matters. In the long run, they will cover all the ministries. The nationalised banks are o bserving 15th of every month as the 'Customer Grievance Day.' where an aggrieved consumer can walk into the top managers' offices in their respective town, district or zone. The Council of Fair Business Practices, of more than 2 0 years standing, is also trying to help in the redressal of complaints against business from individual consumers or groups. Federation of Indian Chambers o f Commerce and Industry (ICCI) has set up a Consumer Business Forum which meets once a quarter in different cities of the country.
All stock exchanges in the co untry have also set up similar cells. The Advertisement Standard Council of India (ASCI), Confederation of Indian Industry (CII) and FICCI have evolved a code of ethics for their activities. Another significant achievement of the consumer has been t he representation given to consumer organisations on the policy making bodies (regulator machinery) of governments and Advisory Welfare Committees of big business organisations and the service sector. Central and State (Government) Consumer Protection Councils, regulatory departments of Preventions of Food Adulteration, Supplies of Food and Drugs, Weights and Measures Department, Quality Control Institutions like Bureau of Indian St andards (BIS) and AGMARK, Petroleum Product Department, Railway Commuters Welfare Committees, Regional Advisory Committees for Indian Airlines Services all have representatives of the various consumer organisations. Thus, co nsumers get full opportunity to participate in policy making aspects. It appears that the time has come when consumers in India can hope to be 'The King' in the market place very soon. The labour of dedicated individuals and groups who have fought relentlessly for consumers rights through the decades has not been in vain after all. Consumer movement, in its present form in India, came into being only in the 1960's with the formation of Consumer Guidance Society of India in 1966 in Bo mbay. With its success, the consumer movement spread o ver to fight for availability, purity and standard prices of commodities. At present, there are about 1000 organisations all over the country. One can say that the consumer movement in India has come of age. From simple awareness generation, it took over to direct action and. then to testing and litigation. Its contribution to the passing of Consumer Protection Act, 1986, has been a historic achievement. Both business and bureaucrats have started taking consumers seriously. Consumer grievance cells have been launched by important organisations and corporations. Consumers are represented on a number of consumer welfare committees set up by various organisations.
THE CONSUMER PR OTECTION ACT, 1986 The Act provides following remedies to an aggrieved consumer:
Removal of defects in goo ds or deficiency in service. Replacement of defective goods with new goods of similar description which shall be free from any defect. Return of price paid by the co nsumer. Payment of compensation for any loss or injury suffered by the consumer. Discontinue the restrictive, or unfair trade practice, and no t to repeat it. Withdraw the hazardous goods from being offered for sale and not to offer t hem for sale. Provide for adequate cost to the aggrieved party.
The Consumer Production Act provides for a three tier system of redressal Agencies: one at district level known as District Forum, second at state level known as 'State Commission', and third at national level known as 'National Commission'. A complaint is to be made to the district forum of the concerned district where the value of goods and services and compensation, if any,
is up to Rs 20 lakhs, to the 'State Commission' between Rs 20 lakhs and Rs 100 lakhs, and to the National Commission for more than Rs 100 lakhs. Interestingly, there is provision for appeals against the orders of a particular redessal forum by the aggrieved party before the next higher echelon and even from the findings of the National Commission before the Supr eme Court.
RIGHTS OF CONSUMER S John F, Kennedy, the former USA President, in his message to consumer had given six rights to consumers. These rights are (i) right to safety, (ii) right to be informed, (iii) right to choose, (iv) right to be heard, (v) right to redress and (vi) right to represent. These rights had paved the way for organised consumer movement in the USA and later it spread all over the world. In India, the Consumer Protection Act, 1986 has also provided for the same rights to consumers. Let us have a brief idea about these rights of consumers. a) Right to Safety It is the right of the consumers to be protected against goods and services which are hazardous to health or life. For example, defective vehicles could lead to serious accidents. The same is true of electrical appliances with sub-standard material. Only recently, there were mass protests and boycott of soft drinks due to presence of hazardous pesticides beyond permissible limits. Thus, right to safety is an important right available to the consumer which ensures that the manufacturers shall not produce and sell sub-standard and dangerous products. (b) Right to be Informed The right to be informed is an important component of consumer protection. The consumer must be provided with adequate and accurate information about qua lity, quantity, purity, standard and the pr ice of the goods and services. Now-a-days the manufacturers provide detailed information about the contents o f the product, its quantity, date of manufacturing, date of expiry, maximum retail price, precautions to be taken, etc. on the label and package of the product. Such information helps the consumers in their buying decision and use of the product. (c) Right to Choose The right to choose provides that the consumer must be assured, whenever po ssible, access to a variety of goods and services at competitive prices. If the market has enough varieties of products at highly competitive prices, the buyers have an opportunity of wide selection. However, incase of monopolies like railways, postal service and electricity supply etc. it implies a right to be assured of satisfactory quality of service at a fair price. (d) Right to be Heard The rights to safety, information and cho ice will be frivolous without the right to be heard. This right has three interpretations. Broadly speaking, t his right means that consumers have a right to be consulted by Government and public bodies when decisions and policies are made affecting consumer interests. Also, consumers have a right to be heard by manufactures, dealers and advertisers about their opinion on production, marketing decisions and any gr ievances of the consumers. Now-a-days, most of the top manufacturers and firms have set up consumer service cells to attend to consumers¶ complaints and take appropriate steps for their redressal. Thirdly, (e) Right to Seek Redressal
The consumers have been given the right of redressal of their grievances relating to the performance, grade, quality etc. of the goods and services. If required, the product must be repaired / replaced by the seller/ manufacturer. The Consumer Protection Act has duly provides for a fair settlement of genuine grievances of the co nsumers. It has also set up a proper mechanism for their redressal at district, state and national levels. (f) Right to Consumer Education It means the right to receive knowledge and skill to become informed consumer. In This direction the consumer associations, educational institutions and the po licy makers Can play an important part. They are expected to impart information and knowledge About (i) the relevant laws which are aimed at preventing unfair trade practices, (ii) the ways and means which dishonest traders and producers may adopt to deceive the consumers, (iii) insistence on a bill or receipt at the time of purchase, and (iv) the procedure to be followed by consumers while making complaints. Effective consumer education leads to an increased level of consumer awareness and help them to enforce their rights more effectively, and protect themselves against fraudulent, dece itful and grossly misleading advertisement, labeling, etc. RESPONSIBILITIES OF CONSUMERs: (a) Be quality conscious To put a stop to adulteration and corrupt practices of the manufacturers and traders, it is the duty of every consumer to be conscious of the qua lity of product they buy. They should look for the standard quality certification marks like ISI, Agmark, FPO, Wool mark, Eco-mark, Hallmark etc. while making the purchases. (b) Beware of misleading advertisements The advertisement often exaggerates the quality of products. Hence, the consumers Should not rely on the advertisement and carefully check the product or ask the users Before making a purchase. In case t here are discrepancies, the same should be brought to the notice of the sponsors and the appropriate authority, if need be. (c) Responsi bility to inspect a variety of goods before making selection The consumer should inspect a variety of goods before buying the goods and service. For this purpose he/she should co mpare their quality, price, durability, after sales service etc. This would enable t he consumers to make the best choice within the limit of their own resources. (d) Collect proof of transaction The consumer should insist on valid docu mentary evidence (cash memo/invoice) relating to purchase of goods or availing of any services and preserve it carefully. Such proof of purchase is required for filing a complaint. In case of durable go ods the manufactures generally provide the warrantee/guarantee card along with the product. It is the duty of consumers to o btain these documents and ensure that these are duly Signed, stamped and dated. The consumer must preserve them till the warrantee/ guarantee period is over. (e) Consumers must be aware of their rights The consumers must be aware o f their rights as stated above and exercise them while
buying goods and services. For example, it is the responsibility of a consumer to insist on getting all information about the qua lity of the product and ensure himself/ herself that it is free from any kind of defects. (f) Complaint for genuine grievances As a consumer if you are dissatisfied with the product/services, you can ask for Redressal of your grievances. In this regard, you must file a proper claim with the company first. If the manufacturer/company does not respond, then you can approach the forums. But your claim must state actual loss and the compensation claim must be reasonable. At no cost fictitious complaints should be filed otherwise the forum may penalize you. (g) Proper use of product/services It is expected from the consumers that they use and handle the product/services properly. It has been noticed t hat during guarantee period, people tend to reckless use of the product, thinking that it will be replaced during the guarantee period. This practice should be avoided. Protection of Consumer Rights
Consumer protection means safeguarding the rights and interests of consumers. It includes all the measures aimed at protecting the rights and interests of consumers. Consumers need protection due to the following reasons: 1. Illiteracy and Ignorance: Consumers in India are mostly illiterate and ignorant. They do not understand their rights. A system is required to protect t hem from unscrupulous businessmen. 2. Unorganised Consumers: In India consumers are widely dispersed and are not united. They are at the mercy of businessmen. On the other hand, producers and traders are organized and powerful. 3. Spurious Goods: There is increasing supply of duplicate products. It is very difficult for an ordinary consumer to distinguish between a genu ine product and its imitation. It is necessary to protect consumers from such exploitation by ensuring compliance w ith prescribed norms of quality and safety. 4. Deceptive Advertising: Some businessmen give misleading information about quality, safety and utility of products. Consumers are misled by false advertisement and do not know the real quality of advertised goods. A mechanism is needed to prevent misleading advert isements. 5. Malpractices of Businessmen: Fraudulent, unethical and monopolistic trade practices on the part of businessmen lead to exploitation of consumers. Consumers often get defective, inferior and substandard goods and poor service. Certain measures are required to protect the consumers against such malpractices. 6. Freedom of Enterprise: Businessmen must ensure satisfaction of co nsumers. In the long run, survival and growth of business is not possible without the support and goodwill of consumers. If
business does not protect consumers' interests, Government intervention and reg ulatory measures will grow to curb unfair trade practices. 7. Legitimacy for Existence: Business exists to satisfy the needs and desires of consumers. Goods are produced with the purpose of selling them. Goods will, in the long run, sell only when they meet the needs of consumers. 8. Trusteeship: Businessmen are trustees of the society's wealth. Therefore, they shou ld use this wealth for the benefit of peop le.
Methods of Consumer Protection
There are four main methods of protecting the interests of consumers: 1. Business Self-regulation: The business community itself can help in achieving consumer protection and satisfaction through self -discipline. Businessmen can regulate their own behaviour and actions by adopting higher ethical standards. Trade associations and chambers of commerce can check unfair trade practices used by some businessmen. 2. Consumer Self-help: Every consumer must be alert as self-help is the best help. He shou ld educate himself and know his rights. He should not allow unscrupulous businessmen to cheat him. 3. Consumers' Associations: Consumers should form voluntary associations. These associations can educate and awaken consumers. They can take organized action and put pressure on businessmen to adopt fair trade practices. 4. Government Regulations: The State can ensure consumer protection through legislative, executive and judicial actions. The laws enacted by the Government must be strictly enforced by the executive. Government of India has enacted several laws to protect the interests and rights of consumers. Some of these laws are as follows: y
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The Essential Commodities Act, 1955 which aims to regulate and control the production, supply and distribution and prices of essential commodities. The Prevention of Food Adulteration Act, 1954 which aims to check adulteration in food items and eatables. The Drugs and Cosmetics Act, 1940 which seeks to ensure purity and quality in drugs and cosmetics. The Standards of Weights and Measures Act, 1956 which aims at ensuring that consumers get the right weight and measurement in products. The Household Electrical Appliances (Quality Control) Order, 1976 which seeks to ensure safety and quality in the manufacture of electrical appliances. The Consumer Protection Act, 1986 which seeks to provide speedy and inexpensive redressal to the grievances of consumers.
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Role of Bureau of Indian standards (BI S) The Bureau of Indian Standards, empowered through a legislative Act of the Indian Parliament, known as the Bureau of Indian Standards Act, 1986, operates a product certification scheme. Till date it has granted more than 30000 licenses to manufacturers covering practically every industrial discipline from Agriculture to Textiles to Electronics. The certification allows the licencees to use t he popular ISI mark, which has become synonymous with quality products for the Indian and neighbouring markets over the past 40 years. The Bureau¶s predecessor, the Indian Standards Institution began operating the Product Certification Scheme in 1955. About 13000 licenses are currently in operation covering about 1000 products.
BIS and Consumer Awareness The consumer movement in India is as old as trade and commerce. Even in Kautilya¶s Arthashastra, there are references to the co ncept of consumer protection against exploitation by the trade and industry with respect to quality, short weight and measurement, adulteration etc. Till recently, there was no organized and systematic movement for safeguarding the interests of co nsumers. The ordinary citizen today depends on products, design and construction of which he or she may not understand. In this situation, reassurance is an over-riding need; reassurance that the product is reliable and w ill meet the expectations of the consumers in terms o f performance, safety, durability etc.
Need For Consumer Awareness It has been observed that the people for, whom various schemes have been taken up by Bureau of Indian Standards (BIS), in fact, do not get benefit as expected. This is mainly because they are not fully aware of these schemes and their bene fits. Also, only knowledgeable and a lert consumers aware of their rights and responsibilities can protect themselves effectively. The need of the hour is, therefore, to educate the common consumers particularly those in rural areas who are more susceptible to exploitation. Once they are educated and made aware of the schemes that have been drawn up for their benefit and also the redressal forum that is available, the benefit of
various schemes, in true sense, will reach the co mmon consumers of the country. It is, therefore, our bounden duty to play our part jointly and effectively in d isseminating various schemes to the common consumers of the country. In this regard, the role of the voluntary consumer organizations, consumer activists, non-governmental organizat ions, educational institutions and media cannot be ignored
Formulation of National Standards BIS is engaged in formulating Indian Standards laying down parameters for the products and services. These Standards are prepared by Technical Committees that are represented by experts from various fields including scientists, technologists, manufacturers and consumers. BIS seek and encourage participation of consumer organizations in formulation of national standards.
Certification Schemes (a) Product Certification: BIS operates Product Certification Scheme that is governed by the Bureau of Indian Standards Act, 1986 and Rules and Regulations framed there under. Presence of Standard Mark on product indicates conformity to the relevant Indian Standard. Before granting licence to any manufacturers, BIS ascertains the availability of required infrastructure and capability of the manufacturer to produce and test the product conforming to the relevant Indian standard on a continuous basis. Samples are also drawn from the production line as well as from market and got tested in independent laboratories to ensure their conformance to t he relevant Indian Standard. (i) Mandatory Certification: The BIS Certification Mark Scheme is essentially voluntary in nature. However, keep ing consumer¶s interests in view, the Central Government has made BIS Certification Scheme compulsory for items meant for mass consumption, consumer safety, health and energy conservation. As on date 133 products have been covered under the Mandatory Certification Scheme. These orders have been issued under the various acts like Essential Commodities Act, PFA Act, etc. (ii) Hallmarking of Gold Jewellery: Hallmarking of Gold Jewellery is a Purity Certification Scheme of BIS. Hallmarked Jewellery has to go through stringent norms of manufacture and quality control. Hallmarked Jewellery is assessed and marked by BIS recognized Assaying & Hallmarking Centres o nly. The Hallmark indicates that the Jewellery articles have been independent ly tested and assures that it conforms to the marked fineness. BIS logo is marked on BIS Hallmarked Jewellery along with fineness (that is 916 for 22 carat), A&HMC¶s logo (Assaying & Hallmarking Centre¶s Mark) ² where the Jewellery has been assayed & hallmarked, Code letter that is year of
hallmarking of Jewellery as decided by BIS, for example letter µB¶ denotes year 2001 and logo of BIS certified jeweller/jewellery manufacturer. (iii) Certification Schemes for Imported Goods: BIS also operates two Certification Schemes for imported goods; one for the foreign manufacturers and the other for Indian importers. The Schemes are essentially similar to BIS Prod uct Certification Schemes for domestic industry barring slight modifications necessary for operation of such schemes. The schemes for foreign manufacturer at present are being centrally operated through Central Marks Department at Headquarters and schemes for Indian importers are operated by respective ROs/BOs under whose jurisdiction Indian importer falls. It may, however, be noted that in case of 133 products covered under mandatory certification, only foreign manufacturers can seek BIS license and for products other than 133 products both foreign manufacturer and Indian importers can seek BIS license. (iv) Eco Mark Scheme: BIS is operating Eco Mark Scheme for labeling of hou sehold and other consumer products which meet certain environmental criteria along with quality requirements prescribed in relevant Indian standards. (b) System Certification: In addition to Product Certification Scheme, BIS also operates following System Certification Schemes.
(i) Quality System Certification: BIS is operating Quality System Certification Scheme against IS/ ISO 9000 series of standards. This scheme is governed by the Bureau of Indian Standards Act, 1986 and has been accredited by Raad Voor Accreditatie (RVA), Netherlands. Under this scheme, the capability of supplier of goods or services is certified to IS/ISO 9000 series of Standards for ensur ing the quality of goods and services satisfying the customer as relevant to the part icular contracts entered into between the respective parties. (ii) Environmental Management System Certification: BIS is operating EMS Certification Scheme against IS/ISO 14000 series of Standards. (iii) Hazard Analysis and Critical Control Point (HACCP) Scheme: BIS has a lso launched Hazard Analysis and Critical Control Points (HACCP) Certification Scheme against IS 15000 to ensure consistent high quality of food safety, compliance with regulations, international acceptance, global co mpetitiveness and total customer satisfaction for the food processing units.
Types of Licensing Although, the scheme itself offers voluntary licensing, the Government of India, on considerations of public health and safet y, and mass consumption has enforced mandatory certification of 135 products through orders issued from time to time under various Acts. While the Bureau continues to grant licenses only on application, the enforcement of compulsory certification is done by th e notified authorities. Given later in this document is a list of items brought under mandatory certification, together with the corresponding Indian Standard Number and the authorities responsible for enforcing the orders. Under separate arrangements with statutory agencies some pro ducts have been placed under special certification schemes of lot or batch inspection, carried out by BIS Inspecting officers. A majority of gas cylinders and valves are certified through such schemes. Under agreement with UNICEF, deep well hand-pumps, a critical potable water supply source for rural areas, is also licensed under a lot inspection scheme. For all other products, the manufacturer is permitted the right to self certify the products after ascertaining its conformity to the Standard licensed for. Through its surveillance operations, the bureau maintains a close vigil on the quality of goods certified. Provision exists for sub-contracting certification surveillance act ivities to competent agencies in specific areas. Some steel products, rubber products and electronic products are presently under such surveillance agreements.
Operational Areas The BIS Product Certification Scheme is open to manufacturers in all countries without discrimination. However, overseas certification is carried out after a suitable mutual recognition agreement has been signed with the respective country. While a license can be granted for any Indian Standard specifying product characteristics, which is amenable to certification, the broad areas of technologies now under certification are: Textiles Chemicals and Pesticides Rubber and Plastic products Cement and concrete products Basic metals and fabricated metal products Machinery and equipment Electrical, electronics and optical equipment
Automotive components Agriculture, food, beverages and tobaccos Leather products Wood products Paper and pulp products Testing instruments Building materials Pumping, irrigation, drainage and sewage equipment Operating Principles The BIS Product certification Scheme operates in an impartial, non-discriminatory and transparent manner. The documents stating the powers, rights and responsibilities of BIS and the affected sectors of society are published by the Government of India as the Bureau of Indian Standards Act, 1986, Rules and (Certification) Regulations, 1988. A compilation of these, together with the licensing procedure has also been published by the BIS and can be purchased from Director (Sales), Bureau of Indian Standards, 9 B. S. Zafar Marg, New Delhi 110 002, India for Rs.25. The specific rules for operating a license are given in another document called the Scheme of Testing and Inspection (STI), described later. Procedures provide for maintaining a very high degree of confidentiality and integrity among its personnel who perform certification related tasks. A body called the Certification Advisory Committee composed of person from varied sectors like manufacturers, consumers, Government agencies and industries associations reviews the performance of the scheme and ad vises on key policy issues. Internally, a senior functionary designated as Additional Director General (Marks) is responsible for ensuring that the scheme operates within the framework of the rules and procedures established.
Resources The finances of the bureau are self-managed, with certification operations accounting for more than 80 percent of the revenue. The BIS employs a staff complement of engineers, scientists and statisticians to cater to all its fields of operations. They are trained into evaluation and assessment techniques to a high degree of professional competence. All preliminary and surveillance inspections are carried out by qualified personnel only. BIS has set up eight laboratories in different cities of India for testing samples of products taken during preliminary and surveillance operations. In addition, independent laboratories that have demonstrated ability and a quality system complying with ISO Guide 25 have been recognized for testing of samples drawn. The certifications scheme operates through a network of 17 Branch Offices set up in state
capitals or major industrial towns and 5 reg ional offices overseeing the work of the Branch Offices.
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PREREQUISITES FOR GRANT OF LICENCE Application
The procedure for grant of BIS Certification Marks License begins with filing the application in the prescribed application form (Form I) by the manufacturer desirous of obtaining the license. A license is granted for varieties of products covered under a given Indian Standard. The forms along with the application fee of Rs.1000 are required to be submitted to the Branch Office under whose jurisdiction the manufacturing unit is located. Overseas applicants may approach the Director, Central Marks Department at BIS Head Quarters, New Delhi. The following additional documents are required to be submitted with the application:
a) Location map of factory and factory layout b) Documentation authenticating the premises of manufacture c) List of manufacturing equipment and testing facilities available d) Scheme of testing and inspection in use, or any proposed to be used, together with an undertaking to follow the scheme approved by BIS after grant of License e) An undertaking to pay the prescribed marking fee from the date o f grant of license) An undertaking to follow all terms and condition of grant of license and to suspend marking with immediate effect in the event o f suspension or cancellation of licensing) A flow chart describing the sequence of production and inspection stages. Registration On scrutiny, if the application is found co mplete in all respects, it is recorded and assigned a registration number. The application is acknowledged and the number is conveyed to the applicant for future reference. Preliminary Inspection Preliminary inspection of the unit is carried out on a mutually agreed date, which should be called within a month of registration. During this inspection the firms manufacturing capability and controls, quality control techniques, facilities available and the technical skills of the personnel are evaluated. Samples of products are tested and also drawn for
testing in BIS or other independent laboratories. Preliminary visits are charged to the applicant at a uniform rate of Rs 2000 per day. A majority of inspections, depending on the size of unit and complexity of work, can be completed within a day. Testing charges have to be paid by the applicant as per the laboratories rate schedules. During the preliminary inspection, the Scheme o f Testing and Inspection is discussed with the applicant¶s management.
Scheme Of Testing And Inspection The Scheme of Testing and Inspect ion (STI) is a document, (which specifies the control over production process) to exercise for operating the certification marks license. This is prepared by BIS in consultation with the first applicant for the product. For subsequent applications, the applicability of the available STI is reviewed and changes are made if necessary. The STI contains, inter alia the following provisions: a) Markings to be applied on the product and the method of applying the Standard Mark. b) Definition of control unit. c) Levels of control to be applied. d) Acceptance criteria, control unit wise. e) Frequency of sampling and tests on raw materials, in process materials and finished products. f) Directions to licensees in the event o f quality related problems. g) A clause requiring free replacement of goods in case a complaint in established bonafide.
Grant of License A license is granted to t he applicant if results of preliminary inspection and independent testing are satisfactory, and the applicant has pa id the advance minimum-marking fee. The initial validity of the license is for one year, which can be extended on application
for further periods of two years at a t ime, subject to satisfactory operation of the license. The scope of a license can be extended at any time by adding more varieties covered by the Indian Standard, after due testing. Supervisory
Controls over Licensee¶s Performance
After the grant of license, the manufacturer is authorized to mark his products on condition that he implements the STI fully, his products conform to the Indian St andard and he maintains a record of tests carried out. Post certification controls are exercised through surveillance inspections at the licensees unit periodically. During these inspections, thorough technical auditing of the quality control system is carried out with reference to the STI document. Samples of current production are tested, and also drawn for testing in BIS or independent laboratories. Additional controls are maintained by drawing market samples and getting them tested in independent laboratories. The results of inspections and product testing are co mmunicated to the licensee as appropriate with suitable advices. Marking can be stopped if consistent deficiencies are observed. License is renewed at the end o f its validity after a review of past performance. A license can be suspended or cancelled following serious discrepancies, particularly if the product does not conform to the Indian Standard.
Other Product Certification Schemes Besides the normal product certifications scheme, BIS also g rants licenses to environment friendly products under special scheme and awards the ECO MARK to such products. These products should conform to additional requirements specified in the Indian Standards to qualify. BIS is a National Certifying Body (issuing and recognizing) under the IEC System for Conformity testing and certification of electrical products (IECEE). The Pro duct categories for which BIS has IECEE acceptance are: cables and chords; capacitors as components; low voltage high power switching equipment; installation protective equipment; electronics. BIS is the National Authorized Institution and the Nat ional Standards Organization under the IEC System of Quality Assessment of Electronic co mponents (IECQ) BIS acts as the surveillance agency for certifications granted by Canadian Standards Association (CSA) and South African Bureau o f Standards (SABS) in India.
Fees Schedule for grant of license
Marking fee
A schedule has been drawn giving the marking fee rates for each product. The marking fee comprises of a fixed element, which is the minimum payable amount per annum. A unit rate is also chargeable concurrently on the quantum of production marked. If the amount calculated on unit rate basis exceeds the minimum marking fee, that fees becomes chargeable i) Application fee (non-refundable) Rs.100 ii) Application fee for renewal of License Rs.500 iii) Testing charges for independent testing Variable iv) Inspection Charges (per day) Rs.200 v) Marking fee Variable vi) Annual license fee Rs.100
Penalties for spurious marking: Under section 22(1) of the BIS Act 1986, any person who contravenes the provisions of Section 11, Section12, Section14 or Section 15 shall be punishable with imprisonment for a term which may extend to one year or with a fine, which may extend to Rs.50000 or with both.
Different Trade Marks Given by BIS n Govt. of INDIA:
CHAPTER: 1 INTRODUCTION
CHAPTER: 2 LITERATURES REVIEW
CHAPTER: 3 COMPANY PROFILE
CHAPTER: 4 DATA ANALYSIS
CHAPTER: 5 FINDINGS, INTERPRETATION AND CONCLUSIONS
