Introduction

An individual who buys products 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 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 of overcharging,
black .marketing, misleading advertisements, etc has become the common practice of greedy
sellers and manufacturers to make unreasonable profits. In this 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 are aware of products or services, its characteristics and the
other marketing P’s (place to buy, price, and promotion).Though the first consumer 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
(choice, information, safety and to be heard) were recognized. Ralph Nadar, a consumer activist,
is considered as the father of ‘consumer 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 and to establish high level ethical conduct for
those engaged in production 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 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 MADs
of consumers.

Concept of consumer protection:

Consumer protection means safeguarding the interest and rights of consumers. In other
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 of their
Grievances. The most common business malpractices leading to consumer exploitation are
given below.
(a) Sale of adulterated goods 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 product.
(c) Sale of sub-standard goods 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 Retail 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 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.

There is no denying fact that the consumers Have the basic right to be protected from the loss or
injury caused on account of defective
goods and deficiency of services. But they hardly use their rights due to lack of awareness,
Ignorance or lethargic attitude.

Objectives 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 of Bureau of Indian Standards (BIS) in spreading awareness and
protecting consumers from unfair trade practices.

Need:
However in view of the prevailing malpractices and their
Vulnerability there to, it is necessary to provide them physical safety, protection of economic
Interests, access to information, satisfactory product standard, and statutory measures for
Redressal of their grievances.

Methodology:
Research can be defined 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 collection of data that does not already exist, which is research
to collect original data. This can be through numerous forms, including questionnaire, direct
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:

 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 economic 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 of overcharging,
black marketing, misleading advertisements, etc has become the common practice of greedy
sellers and manufacturers to make unreasonable profits. 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 on 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 1971. The activities of the union include offering
legal advice, testing facilities, arranging lectures and seminars. The Consumer 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 public, lack of active support from
political parties and other members of the society. 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 core 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 core 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 consumer 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 ones 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 articles 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 of 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 products.
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 been on availability, purity and prices

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 undergoing 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 this
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 articles 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 of professionally managed consumer organisations. From educational
activities and handling complaints, it ventured into areas involving lobbying,
litigation and laboratory testing. This gave good 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. This 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 courses 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 central 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 related matters. In the
long run, they will cover all the ministries. The nationalised banks are observing 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 20 years standing, is also trying to
help in the redressal of complaints against business from individual consumers or
groups. Federation of Indian Chambers of 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 country 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 the 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 Standards
(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, consumers 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 Bombay. With
its success, the consumer movement spread over 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 PROTECTION ACT, 1986

The Act provides following remedies to an aggrieved consumer:

 Removal of defects in goods 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 consumer.

 Payment of compensation for any loss or injury suffered by the consumer.

 Discontinue the restrictive, or unfair trade practice, and not to repeat it.

 Withdraw the hazardous goods from being offered for sale and not to offer them 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 Supreme Court.

RIGHTS OF CONSUMERS
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 quality,
quantity, purity, standard and the price of the goods and services. Now-a-days the
manufacturers provide detailed information about the contents of 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 possible,
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 choice will be frivolous without the right to be
heard. This right has three interpretations. Broadly speaking, this 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 grievances 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 consumers. 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 policy 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, deceitful 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 quality 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 there are discrepancies, the same should be brought
to the notice of the sponsors and the appropriate authority, if need be.
(c) Responsibility 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 compare their quality, price, durability, after sales
service etc. This would enable the consumers to make the best choice within the limit
of their own resources.

(d) Collect proof of transaction

The consumer should insist on valid documentary 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 goods the
manufactures generally provide the warrantee/guarantee card along with the product.
It is the duty of consumers to obtain 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 of 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 quality 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 that 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 them 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 genuine product and its imitation. It is necessary to
protect consumers from such exploitation by ensuring compliance with 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 advertisements.

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 consumers. 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 regulatory 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 should use this
wealth for the benefit of people.

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 should
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:

 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.

Role of Bureau of Indian standards (BIS)

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 the 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 concept 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 consumers.

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 will meet the expectations of the consumers in terms of
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 benefits.

Also, only knowledgeable and alert 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 common consumers of the country.

It is, therefore, our bounden duty to play our part jointly and effectively in disseminating
various schemes to the common consumers of the country. In this regard, the role of the
voluntary consumer organizations, consumer activists, non-governmental organizations,
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 the relevant Indian Standard.

(i) Mandatory Certification: The BIS Certification Mark Scheme is essentially voluntary
in nature. However, keeping 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 only. The Hallmark indicates that the
Jewellery articles have been independently 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) —
where the Jewellery has been assayed & hallmarked, Code letter that is year of
hallmarking of Jewellery as decided by BIS, for example letter ‘B’ 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 Product 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 household 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 ensuring the quality of goods and services
satisfying the customer as relevant to the particular 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 also
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 competitiveness 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 safety, 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 the 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 products 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 activities 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 advises 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 regional offices overseeing the work of the
Branch Offices.

 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 of 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 of suspension or cancellation of licensing) A flow
chart describing the sequence of production and inspection stages.
Registration
On scrutiny, if the application is found complete 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 of Testing and Inspection is discussed
with the applicant’s management.

Scheme Of Testing And Inspection

The Scheme of Testing and Inspection (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 of 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 the applicant if results of preliminary inspection and independent

testing are satisfactory, and the applicant has paid 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 time, 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 Standard
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 communicated to the licensee as appropriate with
suitable advices. Marking can be stopped if consistent deficiencies are observed. License
is renewed at the end of 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 grants 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 Product
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 National Standards Organization under
the IEC System of Quality Assessment of Electronic components (IECQ)

BIS acts as the surveillance agency for certifications granted by Canadian Standards
Association (CSA) and South African Bureau of 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