The Aryavarth Express
Agency (New Delhi): As India commemorates World Consumer Rights Day on March 15th, 2024, the nation’s focus is on enhancing consumer-centric grievance redressal mechanisms. A pressing issue repeatedly shared by consumers across the country on LocalCircles, India’s leading community social media platform, is the absence of product recalls or consumer compensation/replacement for inherently defective products.
Under the amended Consumer Protection Act, 2019, which came into effect on July 20, 2020, all parties involved in the sale of a product, including manufacturers, suppliers, sellers, and even endorsers or promoters, are liable for any defective or substandard goods sold to consumers. The legislation defines six consumer rights, including the right to claim compensation for harm or injury caused by defective goods or deficient services.
However, the ground reality often differs from the theoretical provisions. Consumers’ experiences shared on LocalCircles over the past 24 months reveal that replacement of defective products is a rare occurrence. Even in successful cases, consumers often endure numerous calls, multiple visits by service technicians, and prolonged waiting periods before a replacement is provided. Brands, despite being aware of product defects, tend to avoid replacements and opt for repairs instead. The notion of proactively contacting other users of the same product is virtually nonexistent, with the focus primarily on assisting only those consumers who raise issues.
A notable exception to this trend is the automobile industry, where safety considerations sometimes prompt brands to reach out to consumers for component or accessory replacement if an issue is identified with the original. However, a detailed examination reveals that India lacks a mandated product recall process for defective products that do not involve safety considerations.
In response to the accumulation of complaints regarding defective product grievance redressal over the past two years, LocalCircles conducted a survey to understand how consumers deal with inherently defective products, particularly those of high value. The survey garnered over 32,000 responses from household consumers across 311 districts in India, with 65% male and 35% female respondents. The participants represented various regions, with 45% from tier 1, 33% from tier 2, and 22% from tier 3, 4, and rural districts.
The survey’s findings are alarming, with 55% of households reporting at least one high-value product found to be inherently defective during the warranty period in the last five years. Despite reaching out to manufacturers, sellers, or service providers, only 21% of respondents successfully obtained a product replacement or refund. This means that 53% of surveyed households with one or more defective high-value products could not secure a resolution from the manufacturer, even though the products were within the warranty period.
The survey also sought to gauge consumer sentiment regarding government intervention in addressing defective and unsafe products. An overwhelming 86% of respondents wanted the government to create an easily accessible mechanism for reporting inherently defective or unsafe products, highlighting the need for swift action and consumer protection.
Indian consumers often prioritize product features, functions, prices, discounts, and aesthetics when making purchase decisions, with limited attention given to service and support. A previous LocalCircles survey in 2022 revealed that the real struggle begins when consumers discover inherent defects in high-value products. Informed consumers resort to contacting the brand’s warranty department for redressal, while others opt for local repairs or continue using the defective products unless they become completely defunct.
The survey’s findings underscore the urgent need for the Central Consumer Protection Authority (CCPA) to establish a mandatory standard process for product recalls that all brands must adhere to, particularly for serviceable products like automobiles, gadgets, and white goods. Moreover, the CCPA must be more vigilant in addressing consumer complaints, promptly identifying potential cases of defective products, and taking suo moto action against such products and brands. Swift identification of inherently defective products is crucial for brands to take corrective measures and retain consumer trust, ultimately contributing to the long-term success of the “Make in India” initiative.
LocalCircles plans to share the survey’s findings with relevant government stakeholders and raise public awareness to foster collaboration among all stakeholders in addressing this critical issue. Faster defect identification leads to better quality products from India, which is essential for the long-term success of the nation’s manufacturing sector.
The survey’s demographic breakdown ensures a representative view of the Indian consumer landscape, with participants from diverse geographical regions and socioeconomic backgrounds. As India’s premier community social media platform, LocalCircles plays a vital role in empowering citizens and small businesses to raise concerns and drive policy and enforcement interventions. By facilitating public discourse and bridging the gap between the government and the public, LocalCircles contributes to the creation of a more transparent, accountable, and consumer-centric ecosystem.
The survey’s findings serve as a wake-up call for policymakers, regulators, and businesses to prioritize consumer protection and establish robust mechanisms for addressing inherently defective products. By implementing stringent measures, strengthening enforcement, and promoting consumer awareness, India can move closer to realizing its vision of a consumer-centric market that upholds the rights and interests of every individual.
In conclusion, the LocalCircles survey highlights the pressing need for government intervention and industry collaboration to tackle the pervasive issue of inherently defective products in India. By empowering consumers, enforcing regulations, and fostering a culture of accountability, India can create a more equitable and trustworthy consumer marketplace, ultimately driving the nation’s economic growth and social well-being.
