E-Commerce – Justice And Jurisprudence : Part II: Consumer Protection in Indian Trade: From Ancient Laws to Post-Independence Regulations
Embarking on a historical odyssey, Part II of “E-Commerce – Justice And Jurisprudence” unfolds the intricate tapestry of consumer protection in India. Rooted in ancient scriptures such as the Vedas and enriched by texts like the Code of Chanakya and Manu Smriti, the journey traverses through hereditary merchant classes, medieval Muslim rule, and the impact of British colonization. Post-independence, the enactment of the Consumer Protection Act in 1986 marked a pivotal moment, transforming the legal landscape and empowering consumers. This exploration delves into the historical evolution that laid the foundation for contemporary consumer protection laws in India.
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CONSUMER PROTECTION FROM ANCIENT INDIA TILL PRE-BRITISHERS
In ancient India, the Vedas which are the religious literature originating from God himself were not only the most important but also the primary source of law and therefore Vedas were faithfully followed and obeyed in the ancient Indian culture. There are four Vedas namely Rigveda, Yajurveda, Samaveda, and Atharvaveda (Atharveda).[1] The Vedas are the source of the Dharma’s principles. Vedas are revered as supernatural revelations, and sages were supposed to have conveyed the law to society from a divine source. Apart from the Vedas, other important texts from this era include the Code of Chanakya, Manu Smriti, Narada Smriti, Yajnavalkya Smriti, etc. These Smirities were books written by Sanskrit scholars in ancient India who specialized in law. Later, commentaries (called Nibandhas or Tikas) were written on these Smritis, e.g. the commentary of Vijnaneshwar (who wrote a commentary called Mitakshara on the Yajnavalkya Smiriti), the commentary of Jimutvahan who wrote a book called the Dayabhaga (which is not a commentary on any particular Smriti but is a digest of several Smritis), Nanda Pandit (whose commentary Dattak Mimansa deals specifically with the Law of Adoption), etc.[2]
With the civilization of the societies, the root of the commercial activities started spreading from agriculture to a class of hereditary merchants. The shifting era from truthful and fair trade and commerce to malpractices and from barter to precious stones and metal currency started to evolve. Thus, the idea of protecting the interest of customers against dishonest, unfair, and unethical practices has long been a component of the Indian administration. The ancient rules included clauses that aimed to protect consumer interests and promote consumer safety. Manu Smriti is primarily concerned with ethical business conduct and the punishment of those who treated customers unfairly.[3] Arthashastra of Kautilyais the most prominent text on trade and commerce in ancient India lists several punishments for various forms of exploitation, improper actions, and services.
Good commercial practices were common throughout Chandragupta’s reign when Kautilya lived. To sell, every merchant was obliged to get a permit. A foreign merchant needed to get approval. He permitted a profit margin to set retail pricing. It was forbidden to speculate or corner to set pricing. As a result, the State was heavily responsible for defending the general population against inflated pricing and dishonest business activities. Easy access to justice for everyone, even customers, was valued highly under Chandragupta’s reign. The king was the main authority for administering justice.
A shift in time from the ancient to medieval period brought Muslim traders after the Gupta Empire and India saw the Mughal rule. Muslim rulers in the Medieval Era, like Alauddin Khilji, Sher Shah Suri, Akbar, etc regarded consumer protection as one of their top priorities. During Muslim rule, a large number of units of weight were used in India.[4] At the time of Mughal rule, the prices for goods were pre-decided by the king, and therefore the trade and commerce in the market were rigorously regulated by the ruler. At that time, the city received an endless supply of grain, and grain transporters were sold at prices set by the Sultan. The market had a system in place to enforce prices. Ensuring that justice was available to everyone was nevertheless seen to be one of the fundamental responsibilities of the rulers. Indeed, the foundation of India’s judicial system continues to be its emphasis on justice for everyone.
CONSUMER PROTECTION PRE-INDEPENDENCE AND POST-INDEPENDENCE
Ancient India was popularly known as a golden bird which attracted and lured a lot of traders from all over the world for trade and commerce. India became a source of prosperity, growth, and wealth for various nations. Foreign nationals, such as the Portuguese, Dutch, and East India Company, only entered the holy country of India in order to trade with it. The East India Company brought British people to India. They only had trade-related goals which later, the British were able to turn their trade dominance into a territorial one. The founding of the British Empire in India stands out as a singular moment in world history. The economic policies of the Indian government during British rule were more focused on safeguarding and furthering the interests of the British nationals than on improving the welfare of the indigenous population. New contemporary laws have taken the place of the ancient legal frameworks that Indian rulers had previously built. To administer justice, the English legal system was implemented during the British era which completely revolutionized the Indian legal system. The Indian judicial system, customs and traditions weren’t abandoned.
Post-Independence, the British-established laws that had been in place before India gained its independence were implemented and kept in force there. The Parliament has passed various laws that contain measures for consumer protection after the drafting of the Constitution of India. The scope of the statutory provisions is limited to the peripheral of that provision only. Due to economic imbalances and inequalities, a dense population, a high rate of illiteracy, shortages of essential commodities, adulteration, black marketing, under-weighing significant differences in the quality, prices, and knowledge of consumer rights, the concept of consumer protection has become essential in developing nations like India. The stated objectives of India’s development strategy were to quickly raise living standards, ensure full employment at competitive rates, and lessen disparities brought on by the unequal distribution of wealth and income. Heavy industries grew dramatically and were established as a result of the growing emphasis on industrialization. Article 21 of the Constitution of India provides the right to life with dignity and freedom from any exploitation making the government adopt the socialistic formula of society which aimed to provide a basic standard of lifestyle and living to every section of the society especially weaker and poor sections of the society. Article 39 of the Constitution of India ensures that the resources are distributed in a manner that leads to the common good at large.[5]a
The Consumer Protection Act of 1986, which was created particularly to safeguard consumer interests, brought about a transformation in the Indian legal system. The law is recognized as the MAGNA CARTA in the area of consumer protection for examining dishonest and fraudulent business activities (such as hoarding, black marketing, etc.)[6] It not only checks but also gives the consumer the right to seek redressal in case he/she has any grievances and the right to be informed about the quality, quantity, potency, purity, standard, and price of goods to acquire the goods at the rightful prices and not to be harassed by the manufacturers/sellers.[7] Consumer Protection Act was enacted to have a single comprehensive law for the protection of the interest of consumers and for the creation of special courts to solve consumer disputes speedily and inexpensive manner which granted the following rights to the consumers[8]:
- Right to Safety– To protect against hazardous goods
- Right to be Informed– To be informed about price, quality, purity, etc
- Right to choose– To be able to purchase a range of products and services at reasonable and fair pricing.
- Right to seek Redress– Protection against unfair trade practices and settling genuine grievances.
- Right to Consumer Education– Knowledge about goods and issues related to consumers.
The Consumer Protection Act fosters a feeling of legal awareness among the populace, which, in turn, makes it easier to approach regular courts, particularly when it comes to consumer concerns because of its “cost-effectiveness and user-friendliness”.[9] Regardless of the nature of the dispute, it has changed peoples’ perspectives on the law and caused them to prioritize seeking redress via the Consumer Protection Act. As a result, the aforementioned Act has fostered faith and belief among the public.[10]
AUTHOR: ADVOCATE VIDHI JAIN
NOTE: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
[1] Kabya Kalbalia, Types of Vedas – NCERT Ancient History Notes available at: https://prepp.in/news/e-492-types-of-vedas-ncert-ancient-history-notes#clas published on October 10, 2022
[2] Markandey Katju, From The Ancient To The Modern available at: https://www.outlookindia.com/website/story/from-the-ancient-to-the-modern/264730 published on February 3, 2022
[3] The History of Consumer Protection available at: https://www.iilsindia.com/study-material/972778_1631945652.pdf
[4] Ibid
[5] The History of Consumer Protection available at: https://www.iilsindia.com/study-material/972778_1631945652.pdf
[6] Shubhangi Gandhi, Evolution and Development of the Consumer Protection Act available at: https://lexforti.com/legal-news/evolution-and-development-of-the-consumer-protection-act published on April 23, 2020
[7] Ibid
[8] Bharat, Evolution of Consumer Laws Around The Globe And In India available at: https://www.legalserviceindia.com/legal/article-2065-evolution-of-consumer-laws
[9] Yash Raj, Historical Trends of Consumer Protection Laws in India available at: https://ijlpp.com/historical-trends-of-consumer-protection-laws-in-india/
[10] Ibid
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