CHAPTER 1 CONSUMER PROTECTION LAW IN INDIA

The Indian legal system experienced a revolution with the enactment of the Consumer Protection Act of 1986 [CPA], which was specifically designed to protect consumer interests. The CPA was passed with avowed objectives. It is intended to provide justice which is less formal, and involves less paper work, less delay and less expense. The CPA has received wide recognition in India as poor mans legislation, ensuring easy access to justice. However, the CPA simply gives a new dimension to rights that have been recognized and protected since the ancient period. It is rightly said that The present-day concern for consumer rights . . . is not new and that consumers rights like the right to have safe, un-adulterated and defect-free commodities at appropriate prices has been recognized since ancient times.1 The CPA creates a sense of legal awareness among the public and at the same time, brings disinterest to approach traditional courts, especially on consumer matters. It has changed the legal mindset of the public and made them think first of their remedies under the CPA, regardless of the nature of their case. In short, the CPA has instilled confidence among the teeming millions of impoverished litigants. The liberalization shows the care that has been taken to represent and fight for the cause of weak, indifferent and illiterate consumers. The novelty of the CPA is the inclusion of both goods and services within its ambit. The consumer can bring suit for defective products as well as for deficiency of services. In the event of any deficiency, all services, whether provided by the government or private companies, can be questioned under the CPA.2 The CPA also liberalized rigid procedural requirements and introduced simple and easy methods of access to justice. To proceed under the CPA, the consumer need only pay a nominal fee and need not send any notices to the opposite party. A simple letter addressed to the consumer forum
1

Bill Thomas, The Legal Framework of Consumer Protection, in Marketing and the Consumer Movement 49 (Jeremy Mitchell ed., 1978). 2 http://www.jtexconsumerlaw.com/V11N3/JCCL_India.pdf

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draws enough attention to initiate legal action. Another major procedural flexibility is the option the consumer has to engage a lawyer. If the consumer prefers, he can represent himself. The simple measures of action drive consumers to avail themselves of the benefits of the CPA. Consumer protection laws are designed to ensure fair trade competition and the free flow of truthful information in the marketplace.3 The laws are designed to prevent businesses that engage in fraud or specified unfair practices from gaining an advantage over competitors and may provide additional protection for the weak and those unable to take care of themselves. Consumer Protection laws are a form of government regulation which aim to protect the rights of consumers. Consumer protection is linked to the idea of "consumer rights" (that consumers have various rights as consumers), and to the formation of consumer organizations which help consumers make better choices in the marketplace. The Consumer Protection Act 1986 is a social welfare legislation which was enacted as a result of widespread consumer protection movement. Consumer Protection Act imposes strict liability on a manufacturer, in case of supply of defective goods by him, and a service provider, in case of deficiency in rendering of its services. In order to promote and protect the rights and interests of consumers, quasi judicial machinery is sought to be set up at district, state and central levels. These quasi judicial bodies have to observe the principles of natural justice and have been empowered to give reliefs, of specific nature and also to impose penalties for non compliance of the orders given by such bodies. Consumer is defined as someone who acquires goods or services for direct use or ownership rather than for resale or use in production and manufacturing. Consumer interests can also be protected by promoting competition in the markets which directly and indirectly serve consumers, consistent with economic efficiency, but this topic is treated in Competition law. Consumer protection can also be asserted via non-government organizations and individuals as consumer activism.4

3 4

http://www.legalhelpindia.com/consumer-protection-act.html The Consumer Protection Act, 1986

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The salient features of the Act are:5 (I) It covers all the sectors whether private, public, and cooperative or any person. The provisions of the Act are compensatory as well as preventive and punitive in nature and the Act applies to all goods covered by sale of goods Act and services unless specifically exempted by the Central Government; (II) It enshrines the following rights of consumers:  Right to be protected against the marketing of goods and services which are hazardous to life and property;  Right to be informed about the quality, quantity, potency, purity, standard and price of goods or services so as to protect the consumers against unfair trade practices;  Right to be assured, wherever possible, access to a variety of goods and services at competitive prices;  Right to be heard and to be assured that consumer interests will receive due consideration at the appropriate fora;  Right to seek redressal against unfair trade practices or unscrupulous exploitation of consumers; and  Right to consumer education; (III) The Act also envisages establishment of Consumer Protection Councils at the central, state and district levels, whose main objectives are to promote and protect the rights of consumers; To provide a simple, speedy and inexpensive redressal of consumer grievances, the Act envisages a three-tier quasi-judicial machinery at the national, state and district levels. These are: National Consumer Disputes Redressal Commission known as National Commission, State Consumer Disputes Redressal Commissions known as State Commissions and District Consumer Disputes Redressal Forum known as District Forum; and (IV) The provisions of this Act are in addition to and not in derogation of the provisions of any other law for the time being in force.

http://www.sethassociates.com/consumer-protection-act-in-india.html

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Grant of Reliefs under CPA On arriving at a finding of defect in the goods according to Section 14 CPA, the jurisdictional Consumer Forum may direct one or more of the following: (i) (ii) to remove the defect; to replace the goods with new goods of similar description which shall be free from any defect; (iii) (iv) to return to the complainant the price; 6 to pay such amount as may be awarded as compensation to the consumer for the loss or injury suffered by the consumer due to the negligence of the opposite party; (v) to discontinue the unfair trade practice or the restrictive trade practice or not to repeat them; (vi) (vii) to cease and desist manufacture of hazardous goods; to pay such sums as orders if injury/loss is suffered by a large number of consumers not identifiable conveniently; (viii) (ix) (x) (xi) to issue corrective advertisement for neutralizing effect of misleading advertisement; not to offer the hazardous goods for sale; to withdraw the hazardous goods from being offered for sale; to provide for adequate costs to parties (the Complainant).

Establishment of Consumer forums At present, there are 34 State Commissions, one in each State/UT and 571 district fora besides the National Commission. The state governments are responsible to set up the district fora and the State Commissions. States have been empowered to establish additional District Forum and also additional members in the State Commission to facilitate constituting benches and also for holding circuit benches. The Central Government is empowered to establish the National Commission. It has been empowered to appoint additional members to facilitate creation of more benches and holding of circuit benches. The second bench of the National Commission started

http://www.consumerdaddy.com/a-14-consumer-protection-law-in-india.htm

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functioning from 24 September 2003. The government is monitoring the disposal of cases by the consumer courts through National Commission.

Jurisdiction under Consumer Protection Act 1986 The District Forum has the jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed, is less than INR 50,000. A State Commission has the jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed exceeds 500,000 rupees but does not exceed 2 million rupees. It is also appellate forum for orders of the District forum. The National Commission has the jurisdiction to entertain complaints where the value of goods and services and the compensation exceeds two million rupees and also hears the appeals against the orders of the State Commission.

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CHAPTER 2 DEVELOPMENT OF CONSUMERISM IN INDIA

Consumerism is a social and economic order that is based on the systematic creation and fostering of a desire to purchase goods and services in ever greater amounts. The term is often associated with criticisms of consumption starting with Thorstein Veblen or, more recently by Enoughism. Veblen's subject of examination, the newly emergent middle class arising at the turn of the twentieth century, comes to full fruition by the end of the twentieth century through the process of globalization. The term "consumerism" is also used to refer to the consumerist movement or consumer, which seeks to protect and inform consumers by requiring such practices as honest packaging and advertising, product guarantees, and improved safety standards. In this sense it is a movement or a set of policies aimed at regulating the products, services, methods, and standards of manufacturers, sellers, and advertisers in the interests of the buyer.7 Development of Consumerism Origination Consumerism has weak links with the Western world, but is in fact an international phenomenon. People purchasing goods and consuming materials in excess of their basic needs is as old as the first civilizations. A great turn in consumerism arrived just before the Industrial Revolution. In the nineteenth century, capitalist development and the industrial revolution were primarily focused on the capital goods sector and industrial infrastructure (i.e., mining, steel, oil, transportation networks, communications networks, industrial cities, financial centers, etc.). At that time, agricultural commodities, essential consumer goods, and commercial activities had developed to an extent, but not to the same extent as other sectors. Members of the working classes worked long hours for low wages as much as 16 hours per day, 6 days per week. Little time or money was left for consumer activities.

"Consumerism". Britannica Concise Encyclopedia Online. 2008

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Further, capital goods and infrastructure were quite durable and took a long time to be used up. Henry Ford and other leaders of industry understood that mass production presupposed mass consumption. After observing the assembly lines in the meat packing industry, Frederick Winslow Taylor brought his theory of scientific management to the organization of the assembly line in other industries; this unleashed incredible productivity and reduced the costs of all commodities produced on assembly lines.8 While previously the norm had been the scarcity of resources, the Industrial Revolution created an unusual economic situation. For the first time in history products were available in outstanding quantities, at outstandingly low prices, being thus available to virtually everyone. So began the era of mass consumption, the only era where the concept of consumerism is applicable. Consumerism has long had intentional underpinnings, rather than just developing out of capitalism. As an example, Earnest Elmo Calkins noted to fellow advertising executives in 1932 that "consumer engineering must see to it that we use up the kind of goods we now merely use", while the domestic theorist Christine Frederick observed in 1929 that "the way to break the vicious deadlock of a low standard of living is to spend freely, and even waste creatively". The older term and concept of "conspicuous consumption" originated at the turn of the 20th century in the writings of sociologist and economist, Thorstein Veblen. The term describes an apparently irrational and confounding form of economic behaviour. Veblen's scathing proposal that this unnecessary consumption is a form of status display is made in darkly humorous observations like the following:9 The term "conspicuous consumption" spread to describe consumerism in the United States in the 1960s, but was soon linked to debates about media theory, culture jamming, and its corollary productivism. Present Situation Beginning in the 1990s, the most frequent reason given for attending college had changed to making a lot of money, outranking reasons such as becoming an authority in a field or helping
Ryan in Ritzer 2007, p. 702 Veblen, Thorstein (1899): The Theory of the Leisure Class: an economic study of institutions, Dover Publications, Mineola, N.Y., 1994, ISBN 0-486-28062-4.
8

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others in difficulty. This correlates with the rise of materialism, specifically the technological aspect: the increasing prevalence of compact disc players, digital media, personal computers, and cellular telephones. Madeline Levine criticized what she saw as a large change in American culture a shift away from values of community, spirituality, and integrity, and toward competition, materialism and disconnection. 10 Businesses have realized that wealthy consumers are the most attractive targets of marketing. The upper class's tastes, lifestyles, and preferences trickle down to become the standard for all consumers. The not so wealthy consumers can purchase something new that will speak of their place in the tradition of affluence11. A consumer can have the instant gratification of purchasing an expensive item to improve social status. Emulation is also a core component of 21st century consumerism. As a general trend, regular consumers seek to emulate those who are above them in the social hierarchy. The poor strive to imitate the wealthy and the wealthy imitate celebrities and other icons. The celebrity endorsement of products can be seen as evidence of the desire of modern consumers to purchase products partly or solely to emulate people of higher social status. This purchasing behavior may co-exist in the mind of a consumer with an image of oneself as being an individualist. The Effects of Consumerism Consumerism is becoming the hallmark of most world economies. In the West, it is a common phenomenon, but now even developing countries in the world are resorting to it. In consumer society, people replace their goods with newer ones. They purchase goods, use them and throw them away. New goods when they become old are replaced by newer ones. The question of repair does not arise People have money to purchase goods in plenty. In case, they do not do so as it leads to recession and depression and also results in unemployment.12 Consumerism is appreciated in Western economies since a persons standard of living is valued by his or her material possessions. There are certain positive effects such as:

10 11 12

Levine, Madeline. Challenging the Culture of Affluence. Independent School. 67.1 (2007): 28-36 Miller, Eric. Attracting the Affluent. Naperville, Illinois: Financial Sourcebooks, 1991.

http://www.scribd.com/doc/25530064/The-Effects-of-Consumerism

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Positive Consumerism Effects:13 Primary positive consumerism effects are:

 More industrial production.  A higher growth rate economy.  More goods and services available.  More advertising since goods manufactured have to be sold.  Increased production will result in more employment opportunities.  A variety of goods and services to choose from.  More comforts for a better living style.

There are always certain pitfalls to a given situation in a society. Material prosperity may be there in consumerism but, it has its negative effects on the people and society at large. Negative Consumerism Effects:14 Top negative consumerism effects are:
 Craving for goods is high. The wants and desires of the people increase. The better their

income, the better their purchasing power. But in case, they are not able to do so, then they feel dissatisfied.
 One is in a rat race to earn more and is forced to cope up with stress and other work

related tensions.
 Material wealth is the deciding factor about whether a society is highly developed or not.

Spiritual values are underplayed. This may not be suitable to a person from the East, who generally is appreciative of spiritual values.
13 14

http://www.globalissues.org/article/238/effects-of-consumerism http://www.paggu.com/business/world-economy/the-effects-of-consumerism/

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 Over-dependence on labor saving devices.  A car for each individual would mean gradual erosion of public transport.  Crime rate also increases as wants to possess expensive gadgets increase. Thefts become

common and daylight robberies take place.

 Personal relationships also get affected as people are busy trying to earn more to maintain

their standard of living.

 Cheaper goods are imported from other goods affecting the growth of locally

based manufacturing industries.

 Consumerism has also resulted in ecological imbalances. The natural habitat is being

destroyed to create more goods and build more buildings affecting the weather. Global warming will eventually result in health problems. Industrial pollution is affecting people in many ways.
 People lifestyles have also changed in the sense they are more lavish, full of material

comforts rather than focusing on simplicity. The Eastern spiritualism and philosophy has always laid emphasis on simplicity. Gandhian principles and values favor a nonmaterialistic approach to life. Even well known sages such as Jiddu Krishnamurthi have also eulogized simplicity in ones lifestyles and thinking.
 Consumerism is also depleting the natural resources of the respective country.  Psychological health also can get affected if ones desires are not meant such as

depression. Jealousy and envy can lead to crime.

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CHAPTER 3 ETHICAL CONSUMERISM CONSUMER ACTIVISM

Consumer activism is activism undertaken on behalf of consumers, to assert consumer rights. Goals include making goods and services available to consumers safer, better quality, environmentally friendly, and more readily available.15 The activists and consumers in the movement hope to provide security and healthy standards for employed consumers. The state should protect against profiteers, disease, unemployment, and market fluctuations16. Consumer movements challenge social order and transform it through the propagation of ideologies of consumption in hopes of dramatically changing mainstream views17. The ideal goal is to push consumers to question the morality of a purchased product's origins. Consumer activist tactics can include boycotts, petitioning the government, media activism, and organizing interest groups

ETHICAL CONSUMERISM
Ethical consumerism is the intentional purchase of products and services that the customer considers to be made ethically. This may mean with minimal harm to or exploitation of humans, animals and/or the natural environment. Ethical consumerism is practiced through 'positive buying' in that ethical products are favoured, or 'moral boycott', that is negative purchasing and company-based purchasing.18 Ethical consumerism is a growing phenomenon. It is a major driver of a diverse range of ethical approaches to trade. Alternative approaches such as fair-trade, conservation-driven trade and the trade in organic produce began as market niches but are making their presence felt in the

15 16

www.buyinginfluence.com/consumer_activism.html

Kozinets, V Robert & Handelman:"Adversaries of Consumption: Consumer Movements, Activism, and Ideology", pg 691. Journal of Consumer Research, Inc. Vol 31. 2004. 17 Weinraub, Bernard (July 1, 1970). Consumer Activism Up in Poor Nations. New York Times 18 "Why buy ethically". ethical consumer. Retrieved 2007-05-03

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commercial mainstream 19 . Social, environmental and animal welfare issues are also being addressed by the mainstream itself with the adoption of a plethora of standards by major retailers and producers of fresh produce, timber, apparel, beverages, fish and other every-day consumer items. A polar shift in social attitudes and acceptance levels has brought huge challenges to the food and beverage industry across the United States, Japan and Europe. In the United Kingdom ethical sourcing is becoming much more important, says Lisa Gerhard, Partner with Boyden London. With buyers increasingly aware of organic, non-GM farming, treatment of livestock, fair trade and healthy eating, social responsibility is gaining ground. Gerhardt continues, Its a huge undertaking for consumer goods companies to respond to this. Not only are companies like Walkers changing their frontend marketing, but they have to change entire production capabilities. Some companies are charting a whole new future based on such specifics. Marks & Spencers 200 million investment to protect the environment puts yet more pressure on revenues. But Gerhardt is impressed. Most British supermarkets are becoming more environmentally attuned, she says, and this initiative, backed by a clear and striking advertising campaign, resets the barometer for the industry.
Ethical consumerism examines the role of effective consumer demand as the medium through

which the ethical preferences of consumers and the ethical records of business are signaled in the marketplace 20 . Ethical consumerism has been examined from both the liberal and the conservative viewpoints21 . The liberal view suggests that consumers are active agents who exercise informed and autonomous responsibilities in relation to their values and concerns, thus showing the act of ethical consumption as a personal choice arising from individual concerns. In contrast, the conservative view maintains that consumers need to obey prescriptive and proscriptive set of ethical norms in order to consume ethically. It depends on the ethical consumption of a product by the consumers.

ETHICAL CONSUMERS AND ETHICAL TRADE: A REVIEW OF CURRENT LITERATURE, Anne Tallontire, Erdenechimeg Rentsendorj and Mick Blowfield 20 Barnett et al. 2005, p 45 21 Cherrier, 2006

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The rise in ethical consumerism and green brands that identify themselves as ethical, has led to a rise in ethic-based decisions in the mass market, enabled by increased understanding and information about businesses practices. The term ethical consumerism may refer to the wider movement within marketing, which means that large corporations wish to be seen as working ethically and improving the ethical standards of their industry. Alternative terms are ethical consumption, ethical purchasing, moral purchasing, ethical

sourcing, ethical shopping or green consumerism. In "The Global Markets as an Ethical System", John McMurtry argues that there is no purchasing decision that does not itself imply some moral choice, and that there is no purchasing that is not ultimately moral in nature. This mirrors older arguments, especially by the Anabaptists, e.g. Mennonites, Amish, that one must accept all personal moral and spiritual liability of all harms done at any distance in space or time to anyone by one's own choices. It is often suggested that Judeo-Christian scriptures further direct followers towards practising good stewardship of the Earth, under an obligation to a God who is believed to have created the planet for us to share with other creatures... It should be noted, however, that a very similar argument can be presented from an entirely secular humanist point of view, and there are many people who believe that it is simply better for human beings to acknowledge that the planet supports life only because of a delicate balance of many different factors. Accordingly, sustainability is required and purchasing for vanity or status is abhorred and shunned. This theory is echoed in some modern eco-villages who adopt very similar stances, effectively blocking all goods that do not satisfy their moral criteria at the village gate, and relying on internally produced food and tools as much as possible.

The Emergence of Ethical Consumerism

As the green consumer movement became more established, it gave rise to a new form of consumer activism in the late 1980s and early 1990s, which had previously been on the fringes of the movement, namely, ethical consumerism. At first, it appeared that this new entrant into the consumer movement would forever remain a marginalized form of the mainstream movement. However, underpinned by an increasingly global focus on the principles of fair trade within the
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broader perspective of trade, development, environmentalism and human rights, the ethical consumer movement has grown in strength and influence, reaffirming the basic values of the very first cooperative movement in terms of bringing consumers closer to non-exploitative producers, thereby bypassing the processes of conventional trade through large supermarket chains. The success of the ethical consumer movement can be seen more tangibly today in many supermarkets, including in Ireland. For example, most stores, including multinational retailers such as Tesco, Marks & Spencer, Aldi and Lidl, include a wide range of fair trade, organic and free range products on their shelves and are careful to ensure detailed labeling of all products to inform potential buyers of conformity with relevant ethical standards, thereby influencing decision-making and encouraging consumption. In addition, in most industrialized countries there is a wide range of smaller ethical and fair trade shops and internet-based retail sites responding to the growing numbers of consumers who are concerned about such issues as environment, fair labour standards and personal health. Indeed, personal health and hygiene concerns have also played their part in promoting ethical consumption as citizens in industrialised countries pay greater heed to the increasing number of research reports into the effects of certain types of food and food-processing methods in terms of contemporary diseases and illnesses, such as cancer, obesity and diseases affecting the heart, the brain, the digestive and the respiratory systems, and so on. People generally pay more attention to their diet and therefore to the products they consume.

Spending As Morality
Certain trust criteria, e.g. creditworthiness or implied warranty, are considered to be part of any purchasing or sourcing decision. However, these terms refer to broader systems of guidance that would, ideally, cause any purchasing decision to disqualify offered products or services based on non-price criteria that do not affect the functional, but rather moral, liabilities of the entire production process. Paul Hawken, a proponent of Natural Capitalism, refers to "comprehensive outcomes" of production services as opposed to the "culminative outcomes" of using the product of such services. Often, moral criteria are part of a much broader shift away from commodity markets towards a deeper service economy where all activities, from growing to harvesting to
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processing to delivery, are considered part of the value chain and for which consumers are "responsible". Andrew Wilson, Director of the UK's Ashridge Centre for Business and Society argues that "Shopping is more important than voting", and others that the disposition of money is the most basic role we play in any system of economics. Some theorists believe that it is the clearest way that we express our actual moral choices, i.e., if we say we care about something but continue to buy from parties that have a high probability of risk of harm or destruction of that thing, we don't really care about it, we are practicing a form of simple hypocrisy.

ETHICAL CONSUMERS
Ethical consumers make their purchasing decision based on their ethical obligation.22 Moreover, purchases are a subjective behavior that reflect peoples philosophy and depend on personal value, so its common that they make ethical decisions according to their personal beliefs about what is right or wrong 23 . These purchases are reflected when people choose products they consider to be ethical because of certain labels. A fair trade label is a good example, indicating that the product was delivered from a developing country where workers right and welfare are

taken into consideration. The members of this ethical consumption movement reflect their values and beliefs by what they choose to purchase or not purchase. The increasing concern that people have regarding environmental and social concerns motivates them to display this concern through their purchasing decisions. Accordingly an increasing number of individuals seek to act beyond their own immediate interests as a consumer and consider the impact of their choices on wider society24.

Decision Model of Ethical Consumers25

According to Rob Harrison, (founding director of the Ethical Consumer Research Association) there are four factors which are regarded to be most important when influencing the purchasing

22 23 24 25

Shaw et al. 2001, 1485-1498 Kurland 1995, 297-313

Shaw et al. 2005, 1049-1067

www.edamba.eu/userfiles/file/Antonetti%20Paolo.pdf

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decisions of ethical consumers. (Harrison et al. 2005, 39-48) As shown in Figure 1.1 Decision Model of Ethical Consumer below, are the identified four factors:  Governments: Inform ethical consumers by certifying, creating legislation and publishing related information, and data of the relevant research to the public,  Campaign Groups: Can provide useful tools for ethical consumers, such as labels to assist in identifying ethical products, while updating information and data necessary  Private Sector : Influences consumers by both alternative companies and mainstream companies. Alternative companies can provide identity to ethical consumers while the mainstream companies can create a fashion or trend to attract more consumers to the ethical market.  Specialist Ethical Consumer Publications: Informs ethical consumers according to three main sources which are campaign group publication, specialist ethical consumer organizations and mainstream consumers association.

Fig: Decision Model of Ethical Consumers

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Role of Ethical Consumers

As pointed out above, consumerism is one of the main drivers that contribute to unsustainability. As important stakeholders, consumers have the power to pressure companies to do well and to reduce their environmental impact. As stated above the amount of ethical consumers is growing rapidly. The reason we focus on ethical consumers is that they are proving to be an effective force in the market as drivers for change. They are playing the role of an early adopter , which in marketing terms is a customer that is a person who embraces new technology before most other people do and can be very vocal and communicative with their purchasing opinions. (Search Server Virtualization 2008) Companies look to these consumers for feedback and actively seek them out for product research and design. Usually their opinions are based on personal experience and the comparison with other products. These consumers can be easily displeased but if they approve of a product they will actively recommend it to others. Ethical consumers can be defined as early adopters in the sustainability industry as they have an awareness of sustainability risks, and social issues. Through their purchasing decisions and ethical shopping trends they actively compare other products while intending not only to do well but also by showing the market of these demands. Ethical consumers are easier to adopt sustainability knowledge, and become the pioneers in leading the shift towards a sustainable future.

ETHICAL CONSUMPTION
Consumerism is being used by some stakeholders as a force for social change, based on the theory that companies make decisions on the basis of consumer demand. This logic is evidently constrained by the huge power of large companies which influence, if not create, consumer demand through advertising and branding. However, consumer power may be used to ensure that companies are accountable to society: ordinary citizens in their role as consumers can make companies accountable. There has been a further development from ethical consumerism sustainable consumption. Initiatives to explore the potential for sustainable consumption practices, i.e. going further than the consumption of certain niche products to understanding and then managing demand so that
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social, economic and environmental goals are achieved recognizing that many policies continue to subsidize unsustainable practices and neither consumers or producers face the full environmental costs of consumption (Robins and Roberts, 1998). The challenge of developing sustainable consumption policies is critical to sustainable development, but the focus here is to understand the ethical consumer in niche and mainstream markets.

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CHAPTER 4 RECYCLING: AN ESSENTIAL ELEMENT OF ETHICAL CONSUMERISM

One aspect of ethical consumption that should not be overlooked is recycling. Any form of consumption creates waste products. In most cases, this would be in the form of packaging of a wide variety of consumer products - even organic fruit and vegetable products are packaged to some extent. However, waste disposal covers all consumer products, from small to large, and highlights an area that is often neglected within the consumption process.26 Recycling involves processing used materials into new products to prevent waste of potentially useful materials; to reduce the consumption of fresh raw materials; to reduce energy usage in the recycling process; to reduce air pollution from incineration and water pollution from land filling by reducing the need for conventional waste disposal; and to lower greenhouse gas emissions by reducing energy needs for the recycling process. As scientific understanding and knowledge on the impact of waste disposal on all aspects of the environment have grown, particularly in terms of carbon emissions resulting in the so-called global warming effect, which is especially destructive, the world's governments, international agencies and other relevant organizations have begun to take appropriate steps to address this situation. Some may argue that the international community has not gone far enough and has been too slow to act. But gradually, new international legislation has been passed, resulting in improved legislative frameworks and new systems, regulations and programmes at national level. The mission of recycling, captured by the three arrows in the recycling logo, is Returning, Reusing, Recycling.27 This encapsulates the shared responsibility of consumers, producers and governments to limit the amount of waste that is collectively produced through consumption and to think much more carefully before putting anything in a waste bin and decide if it can be reused for some other purpose, if it can be returned to the retail outlet from where it was purchased for specialized disposal, or if it can be taken to one of the recycling centres that have been established throughout Ireland. More and more materials can now be recycled, including glass, paper, metal, plastic, oil, textiles, electronics and batteries. In addition, local authorities across
26 27

www.ictu.ie/download/pdf/ethical_consumer_guide_ictu.pdf www.ethicalconsumer.org/LinkClick.aspx?link=281

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the country are encouraging households to reuse biodegradable waste through composting, through which food and garden waste can be broken down in special containers over time to be used as compost fertilizer on gardens. The aim is to reduce the levels of wet waste produced by households. Wet waste is either incinerated or put into landfill sites, both of which pollute the environment. Recycling, however, is not without its critics, and there is a school of thought that disputes the net economic and environmental benefits of recycling over its costs. However, there is no disputing the impact recycling can have in reducing national carbon emissions28. The whole issue of recycling is closely linked to the broader issue of sustainable development. The term sustainable development was first coined by the UN's Brundtland Commission8 in 1987, when it defined it as development that meets the needs of the present without compromising the ability of future generations to meet their own needs. Sustainable development is the ultimate goal of ethical consumerism. The concept of sustainable development encompasses economic, social and environmental concerns. It aims to achieve socio-economic and political development in a way that will benefit all countries in the world and bring developing countries to parity with their industrialized counterparts while ensuring that this development does not erode the environment and destroy basic ecological systems. The indigenous groups of the world have also called for sustainable development policies and programme to ensure that continued human development does not erode the rich, cultural diversity that exists.

28

www.recovercanada.com/Retailers.html

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CHAPTER 5 CORPORATE SOCIAL RESPONSIBILITY AND ETHICAL CONSUMERISM

With the advent of the Consumer Protection Act No 68 of 2008 (the CPA) in April 2009, South African consumers are presented with a unique opportunity to recalibrate their responsibilities as citizens through their purchasing power and what they buy. Just as the Americans, through their experience of the whiplash of recession have recently recognized, research articles illuminate the emergence of ethical consumerism in that country, driven by a shared sense of responsibility. Added to this, I can imagine is a new dimension of civic duty informed by responsible spending and borrowing. In the local context and experience, the Consumer Protection Act offers South Africans to transcend the zone of exclusion and to become part of a beneficial social contract among consumers, business and government. This is a new idea in a nation where people and profits were mutually exclusive, where corporate social responsibility was eclipsed by the unethical ethos that a corporates only moral responsibility was to increase shareholder profits. Just as corporate USA has discovered how social responsibility attracted investments capital as well as customer loyalty, creating a virtuous circle.29 In the USA, the power of the purse writes Stengel, is the most democratic power of all. I believe what the Consumer Protection Act seeks to achieve is, apart from empowering consumers, to get consumers to punish companies for unethical behavior especially where inferior material is used or sourced. With suppliers, manufacturers , retailers etc facing stiff penalties and fines as well as oversight through the National Consumer Council and its enforcing arms the National Consumer Tribunal, this is no pipe dream but a reality that dares and encourages consumers to become responsible for their lives. The nexus between activist groups, consumers and institutions which have clout are aimed at targeting companies with unethical standards and, through positive steps, and to put them out of business.

29

Time Magazine 21/09/2009 The Responsibility Revolution by Richard Stengel

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In the US, companies are realizing that consumers are beginning to boycott products they regard as unethical or substandard whilst companies with a strong social responsibility framework were reaping dividends. Effective code of conduct and production standards placed them on path towards increased income and volume in output. The CPA provides for the development of codes of conduct and it is at this level that consumer fora have a constructive role to play. Shared responsibility means consumer becoming activists and asserting their rights by holding companies to account. The CPA facilitates the piercing of the corporate veil by holding everyone from the manufacturer/producer downwards the supply chain to account for shoddy and substandard products without the need to prove negligence on the part of

the manufacturer/producer, importer, supplier, retailer et al. What, I gather, from the provisions of the CPA, is that actively promotes and propagates the ideal of corporate social responsibility (or CSR). Although advocated and promoted in the contact of reducing poverty in his native Bangladesh, Yunus argues that as a result of CSR, millions of people in Bangladesh are now better informed than ever about the good and the bad that corporations do.30 Their capacity to recognize and refuse to do business with companies with egregious ethical lapses is modestly enhanced and companies are beginning to seriously heed the emergence of consumer activism. This is a nation whose earning per capital is little more than a dollar a day, where like South Africa there is a yawning gap between the super rich and the economically dispossessed and deprived. The idea undermining CSR is to do good for the people and the planet without sacrificing profits. Stengel is persuasive in his argument that with CSR profits and principles is not or need not be mutually exclusive. He argues that doing business was a lot more about profit and loss. I understand this to involve factoring in the human rights of consumers and assuming responsibility towards consumers. Back to the CPA, consumers are afforded to access institutions which have teeth and bit which can effective ensure that CSR is factored into the overall mosaic of their profile.

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Certainly the concept of ethical consumerism is getting more attention these days in response to recent and ongoing corporate scandals, environmental disasters, child labor violations, and dangerous work environments throughout the world. But the question remains - how relevant is ethical consumerism really. Very few rigorous studies have been carried out on this subject in North America and certainly not in Canada but a recent study in the UK suggest that direct spending by consumers on "ethical products" amounts to some CDN$18 billion a year. But still this is only amounts to 4 percent of the consumer spending and one would expect the amount to be much lower in Canada where ethical consumerism is not as advanced. 31 As Corporate Social Responsibility, with all its divergent meanings and applications, burgeons into a more common practice, companies have traditionally taken up the call of CSR in part from the growing pressure of investors and consumers who are now more "ethically aware". In other words, consumers, who have become more educated about the ways in which unrestrained global capitalism affects the environment, demand that the companies who produce their products do so in a more responsible manner. Of course, this is all well and good, as corporations must be responsive to their investors. Simply put its good business. After all, the customer is always right. In the past decade we've seen an enormous proliferation of products that are touted as "green". While there is no one standard, regulated definition of green or eco-friendly, it's a label that is taken to mean a number of things. The product may be "fair trade certified", meaning it meets agreed-upon standards for ethically responsible labor practices, or it may have not been tested on animals, or maybe it contains no chemical additives, and so on.32 Corporate Social Responsibility, as noted in Wayne Vissers new book, The Age of Responsibility, must occur on a much more systemic level. This is how a real impact is made. Not by churning out "eco-friendly" products and marketing the heck out of them. Of course, CSR requires communication between each business and its respective investors and customers. And rendering transparent a businesss internal processes and how they effect our social and environmental worlds is a central component of CSR. But turning this communication (which
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has the potential to be substantive, co-creating dialogue between businesses and their customers) into a marketing gimmick essential cheapens and mocks the goals that drive our cause. If a difference is really to be made, lets stop treating investors and consumers as passive children. Lets stop trying to convince them that they are really involving themselves in solutions to the worlds problems by consuming products, no matter how ethically the product is made33. Business products should be marketed and purchased because they provide real value to the person who consumes them. No matter how well-intentioned, inserting this too facile message that "if you buy our product, you buy into the workings of a better, more just world" only serves to confuse the aims of CSR. As Visser has noted, ultimately, the purpose of business is to serve society. Making a positive contribution to society is the essence of CSR 2.0--not just a marginal afterthought." If this is true, if the purpose of business is truly to serve society, then marketing social and environmental initiatives vis a vis products is a hypocrisy of the highest order. The Age of Marketing is over. Its time for CSR to step up its game and move beyond green washing.

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CONCLUSION
Ethical consumers have the inclination to do good. Awareness is surpassing ignorance and the pressure of making our world one that will be here for generations ahead is increasingly being seen as an individuals responsibly as opposed to the government or corporate world s. Conversations of sustainability are becoming more frequent in social and professional settings, and in the media. Citizens and consumers are assuming responsibility as individuals and taking action with how they support or boycott certain labels, corporations, products and businesses. Whether consumers demand purple t-shirts or sustainable purchasing options, the market will catch on and adapt to these demands. And what people want they get - as in what the market demands companies supply. There has been an increased wave of demand for more sustainable purchasing options recently and although this is a good sign for sustainability it may be a case of fixing one problem and causing another. Consumers mean well but are not informed enough to make perfectly ethical and sustainable purchasing decisions. Current knowledge on ethical consumption is patchy and largely dependent on commercial surveys. Trends over time suggest an increased awareness of ethical issues in trade and consumption, but awareness and concern are not directly translated into ethical purchase behaviour. Some steps have been made to understanding the complexity of consumer decisionmaking and the contexts in which these decisions are made. This review of trends in ethical consumer activity and recent research on the phenomenon indicates scope for policy action in three main areas:  Raising consumer awareness;  Supporting increased ethical consumer activity;  Translating ethical consumer trends into opportunities for developing country producers There is potential for supporting efforts to increase consumer awareness. This can be linked to the development of a greater understanding of how ethical consumer beliefs and consequently habits are formed. It is important to avoid a form of ethical consumerism where only the big companies can afford to either meet standards or convince consumers that they are doing the right thing. An ethical consumerism that leads to the greater marginalization of smaller producers in remote areas is hardly ethical.

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BIBLIOGRAPHY
Articles  Bill Thomas, The Legal Framework of Consumer Protection, in Marketing and the Consumer Movement 49 (Jeremy Mitchell ed., 1978).  Veblen, Thorstein (1899): The Theory of the Leisure Class: an economic study of institutions, Dover Publications, Mineola, N.Y., 1994, ISBN 0-486-28062-4.  Levine, Madeline. Challenging the Culture of Affluence. Independent School. 67.1 (2007): 28-36  Miller, Eric. Attracting the Affluent. Naperville, Illinois: Financial Sourcebooks, 1991  Kozinets, V Robert & Handelman:"Adversaries of Consumption: Consumer Movements, Activism, and Ideology", pg 691. Journal of Consumer Research, Inc. Vol 31. 2004.  Weinraub, Bernard (July 1, 1970) Consumer Activism Up in Poor Nations. New York Times  ETHICAL CONSUMERS AND ETHICAL TRADE: A REVIEW OF CURRENT LITERATURE, Anne Tallontire, Erdenechimeg Rentsendorj and Mick Blowfield  Time Magazine 21/09/2009 The Responsibility Revolution by Richard Stengel Web Portals  http://www.jtexconsumerlaw.com/V11N3/JCCL_India.pdf  http://www.legalhelpindia.com/consumer-protection-act.html  http://www.sethassociates.com/consumer-protection-act-in india.html  http://www.consumerdaddy.com/a-14-consumer-protection-law-in-india.htm

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 "Consumerism". Britannica Concise Encyclopedia Online. 2008Ryan in Ritzer 2007, p. 702  http://www.scribd.com/doc/25530064/The-Effects-of-Consumerism  http://www.globalissues.org/article/238/effects-of-consumerism  http://www.paggu.com/business/world-economy/the-effects-of consumerism/  www.buyinginfluence.com/consumer_activism.html  www.edamba.eu/userfiles/file/Antonetti%20Paolo.pdf  www.ictu.ie/download/pdf/ethical_consumer_guide_ictu.pdf  www.ethicalconsumer.org/LinkClick.aspx?link=281www.recovercanada.com/Retailers.h tml  http://www.law24.com/Saber+Ahmed+Jazbhay/732-Corporate-Social-Responsibilityand-the-Consumer-Protection-Act.html  http://iso26000.blogspot.com/2006/03/is-ethical-consumerism-just-niche.html  http://csrinternational.blogspot.com/2011/02/false-promise-of-ethical-consumerism.html  http://www.ethicalconsumer.org/CommentAnalysis/Features/CorporateSocialResponsibil ity.aspx

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