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HOW DOES THE BUREAU OF INDIAN STANDARDS ACT, 2016 PROTECT THE CONSUMER RIGHTS?

HOW DOES THE BUREAU OF INDIAN STANDARDS ACT, 2016 PROTECT THE CONSUMER RIGHTS?
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By JusCorpus Blogs August 27, 2023

INTRODUCTION

The Bureau of Indian Standards Act 2016 was implemented on 12th October 2017. It provides for the establishment of the National Standards Body of India which is also known as the Bureau of Indian Standards.[1] The work of this body is to formulate and prescribe and bring into force Conformity Assessment Schemes like Product Certification, Compulsory Registration Scheme, hallmarking and Management Systems Certification.[2] The act plays an important role in protecting consumers and their rights. It provides for several consumer protection awareness provisions like compensation to the consumers for non-compliance with the standards or in case of faking the certificate of conformity with the prescribed standards.

CERTIFICATION UNDER THE ACT

The Bureau under the act is responsible for prescribing Indian standards for various areas like Food and Agriculture, chemicals, electronics, textiles, medical equipment, electronics, jewelry, etc. The following certification schemes are provided under this act:

  • Product Certification (for tangible products requiring compulsory certification);
  • System Certification (for a system or process supposed to be followed);
  • Foreign Manufacturers Certification (applicable to those foreign manufacturers who sell their products in India);
  • Hallmark (for precious metal and jewelry);
  • Eco mark (for products affecting the environment).[3]

To test a sample for certification under the act, eight laboratories have also been established at Sahibabad, Mumbai, Mohali, Kolkata, Chennai, Bangalore, Patna, and Guwahati.

CONSUMERS RELATED PROVISIONS

The following are the consumer-related provisions provided under the Bureau of Indian Standards Act, 2016:
  • The Governing Council under the act must be established which must provide for the members representing consumer interests.[4]
  • The act also provides that the Bureau has to establish such standards that are mutually agreed upon by the manufacturers and the consumers.
Under Sec. 9(2), the Bureau is obliged to take the following steps to promote the interests of consumers:
  • Market surveillance to monitor the quality and publish its findings.
  • Creating consumer awareness regarding the quality of a product or service.
  • Identification of goods and services for which the standards need to be prescribed.
  • Promoting and reviewing the Indian Standards.
  • Certification of the products and services complying with the required standards., etc.[5]
Section 18 provides that when any certified body or license holder fails to conform with the prescribed standards then the Bureau may direct:
  1. Repair or replacement with the standard product.
  2. Compensation to the consumer for the damage suffered.[6]
  3. The act also provides for the establishment of the fund of the Bureau and Section 20(2)(c)[7] provides that the fines received under it shall be used for consumer awareness and consumer protection along with the promotion of quality of goods, services, articles, systems and processes, etc.
  4. The Central government is authorized to issue directions for the protection of the interests of the consumers.
  5. The act also provides for compensation for non-conforming goods. According to the provisions of the act, when a license holder or certificate holder sells any goods or services which are not of the prescribed standard then the consumer shall be compensated for the injury caused due to non-conformity.
  6. Also, a consumer is authorized to file a complaint under this act.

NEED FOR CONSUMER AWARENESS

Indian Consumer Movement was provided even in Kautilya’s Arthshastra[8], which provided for the need for consumer protection against sub-standard quality, adulteration and defects in measurements etc. It is observed there is a lack of awareness and knowledge amongst the consumers about their rights and schemes for their benefit, which prevents them from availing of proper benefits. It is the need of the present times to spread consumer awareness, especially amongst the rural and uneducated class of society.[9] The Bureau tries to promote the quality of products and create consumer awareness through the following:

Consumer Awareness Programmes: Regular sessions are organized by the regional and branch offices of the Bureau to promote awareness among consumers regarding certification, Standardization, and product quality.

Industry Awareness Programmes: Such sessions are also conducted to spread awareness regarding the activities of the Bureau to the Industries.

Education Programs: It organizes Educational Utilization of Standards Programmes (EUS) to spread awareness regarding the importance and merits of certifications amongst the youth.

Enforcement Activities: The Bureau is also responsible for carrying out search and seizure of the products and services, whenever such complaint of malpractice is being received by it.

Others: Consumer complaints are being reviewed and resolved regularly by the Bureau of Indian Standards, in a time-bound manner. Also, the bureau has declared 14th October as World Standard Day as a sign of respect for the experts who develop these Standards.[10]

THINK, NUDGE & MOVE DEPARTMENT

The Bureau of Indian Standards has also established a department called the Think, Nudge & Move Department, especially for the promotion of consumer-related activities.[11] It is a body that undertakes activities like spreading consumer awareness, resolving complaints filed by consumers and registering various consumer groups throughout the country. It provides for the implementation of the aims and objectives of the organization through the Citizen Charter. It is also responsible for the celebration of World Standards Day to spread awareness among the people. It has also established a consumer Feedback mechanism where the consumers can drop their reviews and suggestions for improvement.

ROLE OF THE ACT IN PROTECTING CONSUMER RIGHTS

In brief, the Bureau of Indian Standards is responsible for protecting the interests and rights of consumers. To accomplish the same, it performs the following activities:

  • Formulation and implementation of the standards for different products and services.
  • Protection of consumer interests and rights.
  • Elimination of the sub-standards and fake products and services from the market.
  • Improvement in the quality of products and services and review of the standards of the products with the changing needs and times.
  • Conformity with International standards to achieve uniformity.
  • To test the quality of products and processes at the laboratories established.
  • Training of the technical and management staff about the certification and standardization of the products.
  • Providing the Certificate of Standardisation to those who provide standardized products.[12]

CASE LAWS

In the case of Bureau of Indian Standards v Pepsico India Holdings P Ltd.[13], the court observed that the expression ‘Purity guaranteed’ on packed water bottles only conveys to the consumers the guarantee that the quality of the product is safe for human consumption and it does not contain any harmful and undesirable substance and the court held that it cannot be stretched by any means to convey that the water is pure H2O because even pure water is unfit for human consumption.

In Bureau of Indian Standards v Commissioner, Chennai,[14] the court held that the Bureau of Indian Standards Act, 2016 is an act for consumer protection only and the aim is to protect the rights and the interests of the consumers.

In Bureau of Indian Standards, Bhopal v D.P. Jewellers and Ors,[15] some Jewellers were selling articles in the shop without the tag of hallmark. The court held that they violated the provisions of Section 11 of the Bureau of Indian Standards Act of 1986[16]. The Court forfeited the articles in favor of BIS and punished the jewelers with a fine of Rupees 45,000.[17]

In the case of Ravi Shankar Bhardwaj and Ors. v. Director General of Police, State[18], the court held that wearing protective headgear conforming with the standards prescribed by the Bureau of Indian Standards while driving a two-wheeled motorcycle is mandatory.

CONCLUSION

The Bureau of Indian Standards acts as a principal body responsible for setting up standards, certification, and standardization of the products and services and testing such products and services. It is also responsible for protecting the interests and rights of consumers and spreading consumer awareness. It conducts regular consumer awareness programs at its branch and regional offices. Also, a specific department called the Think, Nudge & Move Department (TNMD) has been dedicated to consumer-related activities.

Author(s) Name: Leezer Kaur (Army Institute of Law, Mohali)

References:

[1] ‘About BIS’ (Bureau of Indian Standards) <https://www.bis.gov.in/the-bureau/about-bis/> accessed 19 august 2023

[2] ‘BIS and Consumer awareness’ (Indian Institute of Management) <https://iimm.org/bis-and-consumer-awareness/> accessed 23 July 2023

[3] Vikrant Rana, ‘Bureau of Indian Standards- Overview and Importance’ (S.S. Rana & Co. Advocate) <www.mondaq.com/india/product-liability–safety/888040/bureau-of-indian-standards-bis-overview-and-importance> accessed 23 July 2023

[4] Bureau of Indian Standards Act 2016, s 3

[5] Bureau of Indian Standards Act 2016, s 9(2)

[6] Bureau of Indian Standards Act 2016, s 18

[7] Bureau of Indian Standards Act 2016, s 20(2)(c)

[8] ‘Consumers – Their Rights and Remedies’ (Ministry of Corporate Affairs) <https://pib.gov.in/newsite/erelcontent.aspx?relid=26247> accessed 19 August 2023

[9] BIS and Consumer awareness (n 2)

[10] ‘World Standards Day’ (India Today, 14 October 2022) <https://www.indiatoday.in/information/story/world-standards-day-2022-date-theme-history-significance-and-all-you-need-to-know-2285187-2022-10-14> accessed 19 August 2023

[11] ‘Consumer Overview’ (Bureau of Indian Standards) <https://www.bis.gov.in/consumer-overview/consumer-overviews/> accessed 23 July 2023

[12] Pankaj Tyagi, ‘Role of BIS in India: A Comprehensive Outlook’ (Mondaq) <www.mondaq.com/india/product-liability–safety/888040/bureau-of-indian-standards-bis-overview-and-importance> accessed 24 July 2023

[13] Bureau of Indian Standards v Pepsico India Holdings P Ltd (2008) SCC OnLine Del 1251

[14] Bureau of Indian Standards v Commissioner, Chennai (2018) 15 GSTL 273

[15] Bureau of Indian Standards, Bhopal v D.P. Jewellers and Ors (2019) SCC OnLine MP 3142

[16] Bureau of Indian Standards Act 2016, s 11

[17] Bureau of Indian Standards, Bhopal v D.P. Jewellers and Ors (2019) SCC OnLine MP 3142

[18] Ravi Shankar Bhardwaj and Ors v Director General of Police (2004) I ACC 320

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