CONSUMER GRIEVANCES

BY SAKSHI CHANDRESH
 TABLE OF CONTENTS

1. Introduction
2. Background research
3. Literature Review
4. Work Gap
5. Importance
6. Assumptions
7. Data Collection
8. Area of research
9. Methodology
10. Period of project
11. Conclusion
1. Introduction:
Consumer grievances refers to the complaints or
dissatisfaction that is expressed by individuals regarding
products or services that have purchased.

Consumer grievance can arise from various situations such as

dissatisfaction with product or service, unfair business
practices, billing disputes, or issues with warranties or
refunds.
Resolving consumer grievances involves reaching out to the
company's customer service, lodging complaints with consumer
protection agencies, opting for mediation or arbitration, or
resorting to legal action if necessary. The aim is to ensure
fairness, uphold consumer rights, and foster trust between
consumers and businesses.

1.1 Consumer protection in India

Consumer protection in India is primarily governed by the
Consumer Protection Act of 2019, which replaced the earlier
1986 legislation. This updated law aimed to bolster consumer
rights and establish more robust mechanisms for addressing
grievances and ensuring fair treatment for consumers. Here
are the main aspects:

Consumer Rights: The Act delineates various rights for

consumers, including safety, information, choice, a fair
hearing, redressal, and education.
Consumer Forums: It sets up different dispute resolution
bodies like District, State, and National Consumer Disputes
Redressal Commissions to swiftly address consumer
complaints.

Jurisdiction: Consumers can lodge complaints in the

appropriate forum based on factors like the value of goods or
services and geographical location.

Consumer Protection Councils: The Act mandates the

formation of councils at different levels to promote consumer
awareness and safeguard their interests.

Unfair Trade Practices: It prohibits deceptive practices like

false representation and misleading advertisements.

Product Liability: Provisions are introduced to hold

manufacturers liable for defects in products, enabling
consumers to claim compensation for any resulting harm.

Consumer Awareness and Education: The Act

underscores the significance of educating consumers about
their rights and responsibilities, tasking the government and
consumer organizations with this responsibility.

E-commerce Regulations: Given the surge in online

transactions, the Act includes measures to regulate e-
commerce and safeguard online consumers.
Penalties and Compensation: It stipulates penalties for
violations and allows for the compensation of aggrieved
consumers.
Overall, the Consumer Protection Act of 2019 strengthens
consumer rights and establishes effective channels for
resolving disputes. Additionally, various ancillary laws like the
Food Safety and Standards Act of 2006 and the Legal
Metrology Act of 2009 contribute to consumer protection in
India.
2. Background research
Here's a summary of the essential elements of consumer
protection worldwide, which includes various laws,
regulations, groups, and efforts dedicated to defending
consumer rights and interests.

1. International Framework:

Groups like the United Nations (UN) and its branch, the UN
Conference on Trade and Development (UNCTAD), encourage
global collaboration in consumer protection through guidelines,
resolutions, and gatherings. Similarly, the International
Organization for Standardization (ISO) creates standards
concerning consumer protection, covering areas like product
safety and labeling.

2. Regional and National Regulations:

Numerous nations have implemented specific laws and

regulations focused on safeguarding consumer rights and well-
being. These rules encompass areas such as product safety,
equitable trade practices, advertising norms, and mechanisms
for resolving disputes. Additionally, regional entities like the
European Union (EU) have introduced extensive directives
and regulations on consumer protection that are binding
across member states.

3. Consumer Rights: - The right to safety: Consumers are

entitled to protection from goods and services that pose risks to
their health or safety.
- The right to information: Consumers have the entitlement
to access precise and transparent information regarding
products and services, including pricing, ingredients, and
terms of usage.
- The right to choice: Consumers have the liberty to select
from a variety of products and services at fair prices, without
encountering unjust constraints or monopolies.

- The right to redress: Consumers have the privilege to

pursue compensation or solutions for any damages or losses
resulting from faulty products or unfair business practices.

- The right to education: Consumers have the opportunity to

learn about their entitlements and obligations, as well as how
to make informed choices in the marketplace.

4. Consumer Protection Agencies and Organizations:

Numerous nations feature governmental bodies tasked with

consumer protection, overseeing law enforcement, complaint
investigations, and consumer education. Likewise, non-
governmental organizations (NGOs) and consumer advocacy
groups contribute significantly to enhancing consumer well-
being by conducting research, raising awareness, and pushing
for policy changes.
5. Consumer Advocacy and Awareness:
Consumer advocacy organizations strive to empower
consumers, increase awareness of their rights, and advocate
for reforms to enhance consumer protection laws and
standards. Consumer education initiatives seek to provide
individuals with the information and abilities necessary to
make informed choices, identify and report scams or fraud, and
assert their rights when engaging in transactions.
6. International Cooperation and Collaboration:

Cooperation between governments, businesses, civil society

groups, and international entities is crucial for tackling global
issues like cross-border fraud, counterfeit goods, and online
scams. Programs such as the OECD Guidelines for Consumer
Protection in Electronic Commerce offer a structure for
international collaboration and the adoption of best practices
in safeguarding consumer interests.

7. Emerging Issues:

The fast-paced evolution of technology, globalization, and

digital transformation introduces fresh hurdles and prospects
for consumer protection, such as privacy worries, online
transactions, and the rise of the sharing economy. Responding
to these emerging challenges entails continuously adjusting
laws and regulations, alongside stakeholder collaboration to
craft efficient strategies and remedies.
Overall, the global landscape of consumer protection is
dynamic and multifaceted, reflecting the evolving needs and
expectations of consumers in an increasingly interconnected
and complex marketplace. Effective consumer protection
requires a holistic approach involving legal frameworks,
enforcement mechanisms, consumer empowerment, and
stakeholder collaboration at local, national, and international
levels.
In summary, consumer protection on a global scale is dynamic
and intricate, mirroring the changing demands and
anticipations of consumers in a progressively interconnected
and intricate market. To be effective, consumer protection
demands a comprehensive strategy that encompasses legal
structures, enforcement systems, consumer empowerment, and
stakeholder cooperation across local, national, and
international arenas.

Understanding the historical, legal, and socio-economic factors

that have influenced consumer protection is essential to
comprehend the evolution of consumer rights and regulatory
frameworks. Historically, the advent of the Industrial
Revolution marked a significant shift towards mass
manufacturing and urbanization, leading to the rise of
consumerism alongside concerns about exploitation due to
inadequate product quality and deceptive marketing practices.
Early consumer activism emerged in response to these
challenges, laying the groundwork for the development of legal
protections.
In terms of legal frameworks, common law traditions initially
relied on general legal principles like contract law and
property rights to address individual disputes between buyers
and sellers. Over time, governments enacted specific statutes
and regulations to comprehensively address consumer
grievances, covering areas such as product safety standards,
fair trading practices, and dispute resolution mechanisms.
Socio-economic factors, including income disparities and
technological advancements, have further shaped consumer
protection efforts, influencing consumer behavior and
vulnerability to exploitation. Regulatory responses, including
the establishment of regulatory agencies and international
cooperation, reflect efforts to adapt to changing market
dynamics and address emerging challenges in consumer
protection.

The decision to select consumer grievances as our presentation

topic is driven by several factors. Firstly, consumer protection
stands as a cornerstone of contemporary economies, ensuring
equitable and transparent transactions between businesses
and consumers. Our exploration into consumer grievances
aims to unveil the challenges encountered by consumers in the
marketplace and discern the mechanisms established to
redress these concerns.

Moreover, consumer grievances bear significant ramifications

for businesses, policymakers, and society at large. By grasping
the underlying causes of consumer discontent, whether rooted
in product flaws, deceptive advertising, or subpar customer
service, we can inform strategies for enhancing business
practices and fostering consumer confidence. As graduate
students, our aspiration is to engage in interdisciplinary
research that merges theoretical frameworks with real-world
contexts. Consumer grievances provide an ample platform for
such exploration, enabling us to draw upon theories from
economics, psychology, law, and sociology to dissect intricate
consumer behaviors and decision-making processes. Through
the integration of case studies, background research,
interviews, surveys, and statistical data, we endeavor to
present a holistic and evidence-based examination of consumer
grievances, offering insights that may inform policy
interventions or business enhancements in the realm of
consumer protection.
3. Literature Review
Consumer grievances, also known as consumer complaints or
dissatisfaction, represent a critical aspect of modern
consumerism. This literature review aims to synthesize
existing research from diverse sources, including books,
magazines, journals, and popular documents, to provide a
comprehensive understanding of consumer grievances and
their implications for businesses and consumers alike.

3.1 Causes of Consumer Grievances

Numerous studies have identified various factors contributing
to consumer grievances. In "Consumer Behavior: Buying,
Having, and Being" by Michael R. Solomon, the author
highlights product quality, perceived value, and customer
service as primary drivers of consumer dissatisfaction.
Similarly, in "Why We Buy: The Science of Shopping" by Paco
Underhill, environmental factors such as store layout and
product presentation are identified as influential in shaping
consumer grievances. Here's a literature review highlighting
key findings:

3.1.1 Service Quality and Performance Gaps: Research by

Parasuraman et al. (1985) introduced the concept of the "gap
model" to analyze service quality. It identified several gaps
between consumer expectations and perceived service quality,
including knowledge gaps, policy gaps, and communication
gaps. When these gaps exist, consumers are more likely to
experience dissatisfaction and file grievances.
3.1.2 Product Quality and Reliability: Studies such as
Zeithaml et al. (1996) have emphasized the importance of
product quality and reliability in consumer satisfaction. Issues
such as product defects, malfunctions, or poor durability can
lead to grievances, as consumers perceive a gap between their
expectations and the actual performance of the product.

3.1.3 Communication and Transparency: Research by

Smith et al. (1999) highlighted the role of communication and
transparency in managing consumer grievances. When
companies fail to communicate effectively or provide
transparent information about their products or services,
consumers may feel misled or deceived, leading to
dissatisfaction and complaints.

3.1.4 Customer Service and Support: Numerous studies,

including Johnston and Michel (2008), have emphasized the
significance of customer service and support in addressing
consumer grievances. Poor customer service, such as long wait
times, unresponsive staff, or lack of empathy, can exacerbate
consumer dissatisfaction and escalate grievances.
3.1.5. Ethical and Social Responsibility: Research by Mohr
et al. (2001) explored the relationship between corporate social
responsibility (CSR) and consumer satisfaction. Companies
that demonstrate ethical behavior and social responsibility are
more likely to earn consumer trust and loyalty. Conversely,
unethical practices, such as false advertising or environmental
harm, can trigger grievances and backlash from consumers.
3.1.6. Price and Value Perception: Studies such as Monroe
and Krishnan (1985) have investigated the impact of price and
value perception on consumer satisfaction. When consumers
perceive a mismatch between the price paid and the perceived
value received, they are more likely to experience
dissatisfaction and express grievances.

3.2 Consequences of Consumer Grievances

The consequences of consumer grievances extend beyond

individual dissatisfaction to impact businesses and the broader
market. In "The Economics of Consumer Behavior" by Wayne
D. Hoyer and Deborah J. MacInnis, the authors discuss the
negative effects of unresolved grievances on customer loyalty
and brand reputation. Moreover, in "Consumer Complaints
and Company Performance" published in the Journal of
Consumer Research, research findings underscore the link
between consumer grievances and financial performance,
indicating that businesses with higher complaint rates tend to
underperform their peers.
3.3 Mechanisms for Addressing Consumer Grievances

Addressing consumer grievances requires proactive strategies

and effective complaint management systems. In "Service
Management: Operations, Strategy, Information Technology"
by James A. Fitzsimmons and Mona J. Fitzsimmons, the
authors advocate for the implementation of service recovery
strategies to mitigate the impact of consumer grievances on
business outcomes. Additionally, in "Beyond Listening:
Learning the Secret Language of Focus Groups" by Susan M.
Schwartz, the importance of consumer feedback mechanisms,
such as focus groups and surveys, in identifying and
addressing grievances is emphasized.
The research findings from "Service Management: Operations,
Strategy, Information Technology" by James A. Fitzsimmons
and Mona J. Fitzsimmons, as well as "Beyond Listening:
Learning the Secret Language of Focus Groups" by Susan M.
Schwartz, underscore the significance of proactive strategies
and effective complaint management systems in addressing
consumer grievances. Let's delve deeper into each of these
research findings and provide reasoning for their efficacy:

1. Service Recovery Strategies: In service-oriented

industries, consumer grievances often arise due to service
failures or shortcomings. Fitzsimmons and Fitzsimmons
advocate for the implementation of service recovery strategies
to mitigate the impact of such grievances on business
outcomes. Service recovery refers to the actions taken by a
company to address and resolve customer complaints
effectively.

Reasoning:

Retaining Customer Loyalty: Research shows that

customers who experience a service failure but have their
grievances effectively resolved are more likely to exhibit higher
levels of satisfaction and loyalty compared to those who never
experienced a failure at all. This phenomenon, known as the
service recovery paradox, highlights the potential for turning
dissatisfied customers into loyal advocates through effective
service recovery.

Reputation Management: Addressing consumer grievances

promptly and satisfactorily not only retains existing customers
but also safeguards a company's reputation. In the age of social
media and online reviews, negative experiences shared by
dissatisfied customers can significantly impact brand
perception and influence potential customers' purchasing
decisions. Service recovery strategies help mitigate the
reputational damage caused by consumer grievances.
2. Consumer Feedback Mechanisms: Schwartz emphasizes
the importance of consumer feedback mechanisms, such as
focus groups and surveys, in identifying and addressing
grievances. These mechanisms provide businesses with
valuable insights into consumer preferences, pain points, and
areas for improvement.

Reasoning:
Proactive Identification of Issues: Consumer feedback
mechanisms enable businesses to proactively identify and
address potential sources of consumer grievances before they
escalate into larger problems. By soliciting feedback through
surveys, focus groups, and other channels, companies can gain
actionable insights into areas where their products or services
may fall short of customer expectations.
Tailored Solutions: Consumer feedback allows businesses to
tailor their products, services, and customer experiences to
better meet consumer needs and preferences. By
understanding the specific grievances and pain points
expressed by customers, companies can develop targeted
solutions that address these issues effectively.
Enhanced Customer Engagement: Soliciting and acting
upon consumer feedback demonstrates a company's
commitment to customer satisfaction and fosters a sense of
engagement and partnership with customers. When consumers
see that their feedback is being taken seriously and used to
drive meaningful improvements, they are more likely to
develop stronger loyalty to the brand.
3.4 Empirical Studies and Case Examples

Empirical studies and case examples provide valuable insights

into the dynamics of consumer grievances in specific industries
and contexts. For instance, in "Consumer Complaints and
Small Business: The Effects of Regulatory Intervention"
published in the Journal of Small Business Management,
researchers analyze the impact of regulatory intervention on
consumer grievances in the small business sector. Moreover,
case studies such as "Turning Adversity into Opportunity: A
Case Study of Service Recovery in the Airline Industry"
published in the Journal of Service Research offer practical
lessons for businesses seeking to effectively manage consumer
grievances.
3.5 Future Directions and Implications

Looking ahead, there is a need for continued research and

innovation in addressing consumer grievances. As highlighted
in "Consumer Grievances in the Digital Age" by Mary C. Lacity
and Leslie P. Willcocks, the proliferation of digital channels
presents both opportunities and challenges for businesses in
managing consumer grievances. Furthermore, the implications
of emerging trends such as artificial intelligence and
blockchain technology on consumer complaint resolution
warrant further investigation.
4. Work Gap
As mentioned earlier, the extract of books, journals and
articles are referred to give a brief about the consumer
grievances and what are the repercussions involved in ignoring
the consumer grievances.

For instance: In the books, "Consumer Behavior: Buying,

Having, and Being" by Michael R. Solomon, "Why We Buy: The
Science of Shopping" by Paco Underhill, the authors are
delving into the psychological, social and cultural factors
influencing the choices of consumer, as well as providing the
insights into marketing strategies and consumer trends and
uncovering the hidden motivations behind why people take
purchasing decisions respectively.

Consequences of consumer grievances are dealt in "The

Economics of Consumer Behavior" by Wayne D. Hoyer and
Deborah J. MacInnis explains how consumer dissatisfaction
impacts market dynamics, pricing strategies, consumer
welfare and potentially regulatory responses.
Some of the key findings of the articles from the journals such
as in "Consumer Complaints and Small Business: The Effects
of Regulatory Intervention" published in the Journal of Small
Business Management, "Turning Adversity into Opportunity:
A Case Study of Service Recovery in the Airline Industry"
covers the ramifications of the interference of regulatory bodies
on the consumer grievances.
This essentially outlines the reasons, effects and the process of
consumer complaints that has been extracted from the
different sources but to cover the work gap of this research
paper a range of methods have been employed including
interactive videos, interviews, questionnaires, fieldwork that
involves visit to district forum as well to analyze the consumer
complaints procedure.
In the past, when people studied Consumer Grievances, they
mostly guessed about things and didn't have much real
evidence. Their ideas were like educated guesses rather than
facts. Plus, they didn't really look at all the different kinds of
people who might be involved in the process. But our research
is different. We've used lots of new and better ways to study
the topic. We've looked at lots of different types of people and
used modern tools and methods to get real evidence. By doing
this, we've learned a lot more about topic than before, and
we've made our research more trustworthy and useful.

Below are the discussions regarding the various tools utilised:

Questionnaire

This is the valuable tool that allowed us to gather the data

from the large number of respondents efficiently. Here the
standardized questions were framed to ensure the consistency
in data collection that resultantly helped in comparison of the
data.

The questionnaire was aimed to understand the consumer`s

personal experiences with the product grievances and the
effectiveness of the resolution mechanism. This involved a
series of questions that assess the satisfaction levels at each
stage of the process.

Interactive Videos
It involved the visualization of the complex data that provided
the dynamic way of conveying the useful information.

The videos featured the individuals of varying ages recounting

their encounters of being deceived when buying different items
from various sources. This indicates how the consumers felt
mislead and what actions they took in the response to the
fraud they`ve experienced.

Field work

It allowed us to collect primary data first hand from the real-

world settings. It added depth, authenticity and originality to
the research work, enhancing its credibility and providing
insights that may not be available through the secondary
source of data.

During the field work, we visited the district forum nearby and
gained the insights into the common cases they handle, their
frequency, the predominant mode of case filing and the
methods employed to resolve the issues.
Gathering insights from the experts by the way of interviewing
and collecting the relevant statistical information served as an
effective analytical method to understand the entire process.
These tools played a pivotal role by providing primary data
and first hand insights. These methods allowed to collect the
diverse perspectives, validate the hypothesis and explore
intricacies that may not be captured solely through secondary
data. By integrating these approaches, richness of the findings
got enhanced that ultimately improved the overall quality of
the work.
5. Importance
Consumer grievances play a critical role in ensuring fair and
ethical business practices and sustaining a healthy market
environment. It is a great form of feedback and if consumer
complaints are dealt with swiftly it actually helps with
customer retention and even improves the goodwill of the
company. Consumer grievance is important for several
reasons:

1. Protection of Consumer Rights: Grievance

mechanisms allow consumers to voice their concerns
when they encounter unsatisfactory products or services.
This ensures that consumers are not taken advantage of
or subjected to unfair practices.

2. Quality Assurance: By providing feedback through

grievances, consumers help businesses identify areas
where improvement is needed in their products or
services. Addressing these issues leads to enhanced
quality and satisfaction for consumers.
3. Building Trust and Reputation: Handling consumer
grievances promptly and effectively demonstrates a
commitment to customer satisfaction and builds trust
between businesses and consumers. This can lead to
positive word-of-mouth and repeat business.
4. Legal Compliance: Many jurisdictions have regulations
in place that require businesses to have procedures for
addressing consumer grievances. Compliance with these
 regulations is essential to avoid legal repercussions and
maintain a good reputation.

5. Competitive Advantage: Businesses that are

responsive to consumer grievances and strive to resolve
them satisfactorily often gain a competitive edge. This is
because consumers are more likely to choose companies
that prioritize their needs and concerns.

6. Feedback for Improvement: Consumer grievances

provide valuable feedback for businesses, helping them
identify weaknesses in their products or services and
make necessary improvements. This continuous feedback
loop contributes to ongoing innovation and adaptation.

7. Ethical Responsibility: Treating consumers fairly and

addressing their grievances is an ethical responsibility for
businesses. It demonstrates integrity and a commitment
to upholding ethical standards in business practices.
8. Consumer Empowerment: Having effective grievance
mechanisms in place empowers consumers by giving them
a voice and a means to hold businesses accountable for
their actions. This promotes a more balanced relationship
between businesses and consumers.
Overall, consumer grievance is very important because it
ensures fairness, accountability, and transparency in the
marketplace and also benefiting both consumers and
businesses alike.
In summary, consumer grievance mechanisms play a vital role
in establishing fair and ethical marketplaces. They are
essential for safeguarding consumer rights, ensuring the
quality of products and services, fostering trust between
businesses and consumers, and adhering to legal standards.
Moreover, efficient resolution of grievances offers valuable
insights for businesses, enhances their competitive edge, and
fulfills their ethical obligations. By empowering consumers and
reinforcing accountability, these mechanisms contribute to the
creation of transparent and balanced market environments
where both consumers and businesses can flourish. Therefore,
prioritizing consumer grievance mechanisms is imperative for
nurturing environments where consumer interests are upheld,
businesses operate responsibly, and trust is cultivated.
6. Assumptions
Here are some assumptions for a research study on consumer
grievances based on data collected from students, housewives,
and some employed individuals, gathered from a consumer
redressal forum:

1. Homogeneity of Grievances: Assuming that consumer

grievances across different demographic groups (students,
housewives, and employed individuals) share commonalities in
terms of the types of issues they face.
2. Representation of the Population: Assuming that the sample
of grievances collected from the consumer redressal forum
adequately represents the broader population of consumers
within the geographic area or market segment under study.

3. Accessibility Bias: Assuming that individuals who actively

engage with consumer redressal forums represent a subset of
consumers who are more likely to report grievances,
potentially skewing the data towards more severe or persistent
issues.
4. Time Lag: Assuming that the grievances collected from the
consumer redressal forum reflect a snapshot of consumer
concerns at a specific point in time and may not capture
evolving trends or seasonal variations in consumer grievances.

5. Generalizability of Findings: Assuming that insights drawn

from the grievances of students, housewives, and employed
individuals can be extrapolated to broader consumer
populations, including other demographic groups or
socioeconomic backgrounds.

6. Social Desirability Bias: Assuming that individuals may

under-report or exaggerate grievances based on social norms
or expectations, potentially leading to inaccuracies in the data
collected from the consumer redressal forum.

7. Digital Literacy Bias: Assuming that the grievances

collected from the consumer redressal forum primarily
represent consumers who are digitally literate and have access
to online platforms, potentially excluding individuals who face
barriers to accessing or navigating such forums.

8. Multiple Grievances: Assuming that individuals may report

multiple grievances, and each grievance may vary in severity,
complexity, and impact on consumer satisfaction, potentially
influencing the overall analysis and interpretation of the data.
7. Data Collection
7.1 Primary Sources:
To bolster our research with additional data and evidence, we
conducted interviews targeting consumers across various age
groups. During these interviews, participants shared insights
into their purchasing behavior, consumption patterns, and
recounted instances of being deceived by sellers. The recorded
interviews are accessible within the presentation file that we
have submitted. Now, let's delve into our findings following the
completion of both the questionnaires and interviews.

7.1.1 ANALYSIS FROM INTERVIEWS:

Insights from these interviews highlight a spectrum of

experiences with online and offline consumer interactions:
1. Byjus' Study Material Non-Delivery:
- Reveals a significant issue with e-learning platforms, where
promised services, such as study materials, are not delivered.
- Reflects a breach of trust between consumers and the
company, potentially impacting students' academic progress
and confidence in online education platforms.

2. Inadequate Customer Redressal by Prominent Apps

(e.g., Meesho, Flipkart, Domino's):

- Indicates a systemic problem across various industries,

where even well-established companies struggle with effective
customer service and grievance resolution.
 - Suggests that despite their market prominence, these
companies may not prioritize customer satisfaction or invest
adequately in customer support infrastructure.
3. Swiggy Mart's Freebies Scam:

- Highlights deceptive marketing practices by a popular food

delivery platform, undermining consumer trust and loyalty.
- Points to the need for stricter regulations and transparency
in online advertising to prevent such fraudulent schemes and
protect consumer interests.

4. Misrepresentation in Offline Markets:

- Exposes unethical business practices in physical retail
settings, where consumers are misled about the quality or
authenticity of products.

- Emphasizes the importance of consumer education and

awareness to combat deceptive sales tactics and safeguard
consumer rights.

5. Hospital Overcharging and Unnecessary Tests:

- Raises concerns about healthcare affordability and

transparency, where consumers may be exploited for financial
gain through unnecessary medical procedures.

- Highlights the need for regulatory oversight and

accountability in the healthcare sector to ensure fair pricing
and ethical treatment practices.
6. Exemplary Consumer Experience by Companies like
Dell and KFC:

- Contrasts with the negative experiences described earlier,

illustrating that some companies prioritize customer
satisfaction and invest in robust support systems.

- Suggests that providing exceptional consumer experiences

can foster brand loyalty, positive word-of-mouth, and long-
term success in competitive markets.

Overall, these insights underscore the importance of consumer

advocacy, regulatory oversight, and corporate responsibility in
shaping positive consumer experiences and maintaining trust
in both online and offline transactions.

7.1.2 ANALYSIS FROM QUESTIONNAIRES:

We distributed surveys to individuals across various age
demographics to capture their concerns, document how those
concerns were addressed, and assess their satisfaction levels.
Statistical techniques, including graphs and bar diagrams,
were utilized to visually present the research findings. They
are presented below:

MODE OF COMMUNICATION SUMMARIZED:

- Younger age groups (18-20 and 21-25) tend to prefer digital
communication channels such as online portals and email.

- Phone communication remains widely used across all age

groups but slightly decreases in frequency with older age
groups.
- In-person visits are the least favored mode of communication
across all age groups, reflecting a trend towards digital
interaction, particularly among younger demographics.
- Businesses should consider these preferences when designing
their customer service strategies, ensuring that they offer a
range of communication channels to cater to the diverse
preferences of their customer base.
8

5
18-20 yrs
4
21-25 yrs
3 above 30 yrs

0
Online portal Email Phone In person visit

CUSTOMER SERVICE SATISFACTION SUMMARIZED:

- Customer service satisfaction tends to be lower among
younger age groups (18-20 and 21-25), with a notable
proportion expressing neutrality or dissatisfaction.
- Satisfaction levels improve among individuals above 30, with
a majority reporting satisfaction or neutrality.
- The data suggests that older individuals may have different
expectations or standards for customer service compared to
younger demographics.
- Businesses should focus on addressing the concerns and
feedback of younger age groups to improve overall customer
satisfaction, while also ensuring that customer service
strategies cater to the preferences and expectations of diverse
age demographics.

Highly satisfied
Satisfied
Neutral
Dissatisfied

COMPENSATION SATISFACTION SUMMARIZED:

- Compensation satisfaction appears to vary significantly

across different age groups.
- Younger age groups (18-20 and 21-25) tend to express more
dissatisfaction with compensation compared to older
individuals (above 30).
- The data suggests that there may be discrepancies in
compensation satisfaction between younger and older
demographics, possibly due to differences in expectations,
needs, or experiences in the workforce.
- Businesses should carefully assess compensation structures
and policies to ensure they meet the needs and expectations of
employees across different age groups, aiming to improve
overall satisfaction and retention. Additionally, addressing the
concerns of younger employees regarding compensation could
be crucial for employee engagement and retention efforts.
12

10

8 COMPENSATION
SATISFACTION Satisfied
6
COMPENSATION
4 SATISFACTION Not
satisfied

0
18-20 yrs 21-25 yrs above 30 yrs

TRANSPARENCY OF COMPLAINT RESOLUTION

SUMMARIZED:

- Transparency of complaint resolution varies across different

age groups but generally tends to be rated positively.

- Younger age groups (18-20 and 21-25) show a slightly lower

perception of transparency compared to the above 30 age
group, although the differences are not significant.

- Businesses should prioritize maintaining and improving

transparency in complaint resolution processes to enhance
customer satisfaction and trust, regardless of the age
demographics they serve. This may involve implementing clear
communication channels, providing updates on the status of
complaints, and soliciting feedback from customers to
continuously improve resolution procedures.

Poor

Fair
above 30 yrs
21-25 yrs
Good 18-20 yrs

Excellent

0 2 4 6 8 10 12

TIME TAKEN TO ACKNOWLEDGE THE COMPLAINT:

- The time taken to acknowledge complaints varies across
different age groups, with younger age groups (18-20 and 21-
25) generally experiencing quicker acknowledgment compared
to individuals above 30.
- There is a trend towards longer acknowledgment times with
increasing age, with individuals above 30 experiencing the
longest durations.
- Businesses should aim to acknowledge complaints promptly
across all age groups to demonstrate responsiveness and
commitment to customer satisfaction. Implementing efficient
complaint acknowledgment processes and utilizing technology
to streamline communication can help reduce acknowledgment
times and improve overall customer experience.
 7

4 18-20 yrs

3 21-25 yrs
above 30 yrs
2

0
Less than 1-2 days 3-5 days more than 5
24 hrs days

7.1.3 ANALYSIS FROM ON FIELD WORK

We visited the District Consumer Disputes Redressal

Commission -1 (North) on April 16, 2024. It proved to be a
valuable visit, providing us with practical insights into its
operations.

The forum operates in a hybrid mode, offering consumers the

choice to participate either via video call or in person.
Additionally, advocates from other regions can join via video
call. Most cases handled are local and typically attended in
person.

The process remains identical whether conducted online or

offline, all proceedings occur within the same courtroom. Both
the complainant and defendant are linked to the physical court
through a call.
There's no obligation to attend in person; even nearby
residents can utilize the video call option. Three key
considerations when accepting a case are: ensuring the
consumer falls within the jurisdiction, the cause of action took
place there, and the seller is also within the jurisdiction.

Cases can either originate within this commission or come

from appellate courts.

This commission handles cases up to the monetary limit of 50

lakh rupees.
Complaint fees vary based on the case amount. No fees are
charged for cases valued between 0 to 5 lakh rupees.

Despite some cases being less genuine, they must be addressed

due to their compliance with the terms outlined in the
Consumer Protection Act. Some examples of such cases
include:

Cases sometimes arise when lawyers pursue personal

grievances against individuals. For instance, a lawyer once
filed a complaint against a person due to personal animosity,
alleging that the individual hadn't been served onions with
their Biryani. Although the case was eventually dismissed, it
had to be addressed under the consumer protection act, which
mandates consideration of all consumer requests.

In another instance, a lawyer lodged a complaint against an

air conditioner service technician. The lawyer claimed
compensation of five lakh rupees because the AC's malfunction
caused the lawyer to lose a client. Despite the unusual
circumstances, the complaint had to be entertained due to the
alleged non-performance of the AC impacting the client's
decision.
The case must be filed within two years from the date of the
cause of action.

Regarding compensation, consumers have the right to demand

any amount, but it is at the discretion of the presiding judge to
determine whether the requested amount is reasonable.

All original documents must be attached to the case file at the

outset of proceedings. Once the complaint is submitted to the
court, the president schedules a hearing date. Upon hearing
the complaint, if the president finds it convincing, the opposing
party is notified, and discussions commence with the lawyers
representing both sides.

Cases brought to the consumer court are resolved through

dismissal or appropriate resolution.

Two key factors are pivotal here: Firstly, the complainant must
qualify as a consumer of the relevant commodity or service to
fall under the Consumer Protection Act. Secondly, a
substantial link with the goods or service provider must exist,
along with evidence of default or deficiency.
Approximately five new cases are presented daily, with an
average of 60 filed monthly. According to Mr. Vikrant Thakur,
the personal secretary of President Divya Jyoti Jaipuriar, who
oversees the proceedings, around 50 cases are disposed of
monthly.

Insurance and banking cases are prominent in this court, with

the specific types of cases varying depending on the court's
location. For instance, property-related cases are more
prevalent in South Delhi. The abundance of lawyers' chambers
in various areas is believed to contribute to the higher number
of reported cases.
Yaman Malik provided us with the above information, and we
are deeply appreciative of his cooperation.

During our interaction, an elderly man arrived to file a case

against a builder to whom he had paid 7-8 lakh rupees. He was
charged four hundred rupees for registering the complaint.

On average, cases take 1.5-2 years to be resolved.

We extend our sincere gratitude for the kind assistance and

support from:

- Vikrant Thakur (Personal Secretary of the president)

- President Divya Jyoti Jaipuriar

- Yaman Malik (Senior Associate)

 7.2. Secondary Sources:
1. Introduction to secondary data: Secondary data offers a
panoramic view of the landscape of consumer grievances in
India. By drawing upon established reports and studies, we
gain insights into historical trends, emerging patterns, and the
multifaceted nature of consumer challenges.
2. Sources of Secondary Data: Government reports can be
invaluable sources of secondary data. These reports often
provide detailed insights into the landscape of consumer
complaints, the functioning of redressal mechanisms, and the
efficacy of consumer protection policies. Here are some key
government reports you might consider for your secondary
data collection:

a)Government reports:

● National Consumer Helpline (NCH) Reports

National Consumer Helpline (NCH) functions as the grievance

redressal mechanism under the Ministry of Consumer Affairs,
operating for 16 years. It offers multiple channels for
consumers to report grievances, including toll-free phone lines,
websites, apps, SMS, and post. The platform aims to guide
consumers, provide information on companies and regulatory
bodies, assist in filing grievances, and educate consumers
about their rights. NCH can provide a wealth of data on the
types of complaints received, industries most affected,
geographical distribution of complaints, and the resolution
status.

Three-Tier Approach:
1. Advice and Guidance: Tailored to the stage of the complaint
and desired resolution.
2. INGRAM Portal: Launched in 2016, offering various modes of
contact (Apps, Portal, etc.) for consumer complaints.
3. Contact Points: Toll-free numbers, portal registration, SMS,
apps, post, UMANG App, CPGRAMS, and web chat.

Grievance Statistics (FY 2020-21):

● Modes Used:
● Phone: 49.8%
● Web: 28.3%
● NCH App: 11.9%
● Others (SMS, CPGRAM, etc.): 9.9%

State-Wise Grievances:

● Maharashtra, Uttar Pradesh, Delhi, Karnataka among

top states.
● A total of 67,4820 dockets registered in FY 2020-21.

Sector-Wise Grievances (FY 2020-21):

● E-commerce, Banking, Telecom, Electronic Products

among top sectors.
● General inquiries from non-consumer sectors accounted
for 14.8% of all dockets.

Mobile Apps:

● NCH, Consumer, and UMANG Apps facilitate grievance

registration and suggestions.
● Other Channels:
● SMS facility for grievance registration.
● Web chat for real-time consumer support.
 ● Emails and letters from Dept. of Consumer Affairs for
redressal.
● Zonal Consumer Helplines (ZCH) in 6 zones, handling
grievances in local languages.

● Consumer Affairs Department Annual Reports

The Department of Consumer Affairs, under the Ministry of

Consumer Affairs, Food and Public Distribution, releases
annual reports detailing various aspects of consumer
protection and redressal.These reports often include statistics
on consumer complaints, trends over the years, consumer
awareness initiatives, and updates on the Consumer
Protection Act.
● Disposal Rates: Average disposal rate of cases across all
levels is 89.17%.
● Total Cases: Significant numbers filed and disposed:
National Commission: 145,513 filed, 122,553 disposed,
22,960 pending (84.22% disposal).
State Commissions: 897,181 filed, 780,895 disposed,
116,286 pending (87.04% disposal).
District Commissions: 4,649,436 filed, 4,172,380 disposed,
477,056 pending (89.74% disposal).
.
● Schemes for Improvement:

● Workshops and Initiatives:

National workshop for effective dispute resolution.

● Settlement through Lok Adalat:
5,930 cases settled in a day.
● Mediation Cells:
 418 cells nationwide for alternate dispute resolution.
● Guidelines for Advertisements:
Focus on preventing misleading ads.
● Penalties:
Imposed for violations of advertising guidelines.
● Framework Against Fake Reviews:
Measures to safeguard consumers.
● Uniform Charging Port:
Examination for e-waste prevention.
● Public Grievance Cell:
Setup at National Test House for prompt redressal

● Availability: The annual reports are typically available

on the official website of the Department of Consumer
Affairs.

b)Industry reports:
1. Consumer Protection in India: A Review:
This report by the National Law School of India University
(NLSIU) provides an overview of the consumer protection
landscape in India. It covers legal frameworks, challenges in
consumer redressal, and suggestions for improvement.

The Government of India has enacted laws like the Indian

Contract Act, Prevention of Food Adulteration Act, and the
Consumer Protection Act, 1986, to protect consumers from
unfair practices. However, these legal processes are often slow
and costly.

To address this, the National Law School of India University

(NLSIU) and Indian Institute of Technology Bombay (IIT
Bombay) are collaborating with the Department of Consumer
Affairs (DoCA) on a new project. This initiative aims to use
 large language models (LLMs), specifically Llama2, to improve
India’s consumer grievance redressal system.

The project will focus on developing a chatbot and decision-

assist tool for consumer law. The chatbot will guide consumers
in drafting complaints and answering law-related queries,
enhancing efficiency and accessibility. The decision-assist tool
will help in searching case laws and summarizing documents
for judicial authorities.

Overall, this aims to use AI to enhance India’s consumer

grievance redressal, promote consumer rights, and improve
dispute resolution, in line with principles of open innovation
and responsible AI development.

3.Organizing the Data:

Grievance Statistics:
● Modes Used for Complaints
● State-Wise Distribution
● Sector-Wise Grievances
● Channels for Grievance Redressal:

● Mobile Apps
● Other Channels (SMS, Web Chat, Emails, etc.)
● Consumer grievance institutions
● Annual Report Insights:
● Disposal Rates
● Total Cases Handled
● Schemes and Initiatives for Improvement
● Consumer Protection in India: A Review:
● Overview of Laws
● Collaboration Details
● Development Objectives
● Principles
These categories serve as a framework for analyzing the data
collected from the reports and organizing it for further study or
research on consumer grievances and redressal mechanisms in
India.
4. Data Analysis:

A total of 67,4820 dockets were registered at NCH. Some

of the highlights are: • The top ten states from where
dockets were registered are Maharashtra, Uttar Pradesh,
Delhi, Karnataka, West Bengal, Rajasthan, Gujarat,
Haryana, Bihar, and Madhya Pradesh.
Total dockets registered were 6,74,820, a drop of 9% from
the last financial year.
In the FY 2020-21 the top five sectors for which grievances
were registered, in order of counts were of e- commerce
followed by Banking, Telecom, Electronic Products, Digital
Payment Modes, Broadband & Internet. E- Commerce is at the
top amongst all sectors of consumer grievances. General
enquiries which are of non-consumer sectors account for 14.8%
of all dockets registered in the financial year.

5. Comparisons and Context:

Regional Variations:

● Disposal rates vary across different levels of commissions,

indicating potential differences in the efficiency of
redressal mechanisms in various regions.
● The total number of cases filed and disposed of in states
like Maharashtra, Uttar Pradesh, Delhi, and Karnataka
 could shed light on the intensity of consumer grievances
in these areas compared to others.

6. Implications and Recommendations:

● Further analysis of regional trends in consumer

grievances can provide insights into specific consumer
issues in different states.
● Tailoring LLM-based tools to address sector-specific
grievances prevalent in Maharashtra, Uttar Pradesh,
Delhi, and Karnataka might enhance their effectiveness.
● Monitoring the impact of NCH and Consumer Affairs
initiatives in states with varying grievance rates could
guide policy improvements for more efficient redressal.

7. Citation and Referencing:

National consumer helpline annual report

Consumer affairs department annual report
NSLIU
Reports from the National Consumer Disputes Redressal
Commission (NCDRC)
FICCI
Times of India
 8. Area of Research:
Introduction:
Our research aims to delve into the landscape of consumer
grievances in India, focusing on the effectiveness of existing
redressal mechanisms, emerging trends in consumer
complaints, and proposing actionable recommendations for
improvement. Our study combines quantitative data analysis
from government reports and qualitative insights from
consumer interviews to offer a holistic view of the challenges
faced by consumers and the opportunities for enhancing
grievance redressal. The following are the main pointers of the
area of research:

2. Evaluation of Consumer Grievance Mechanisms:

● We have assessed the efficiency and accessibility of the

National Consumer Helpline (NCH) and State Consumer
Helplines in addressing consumer complaints using data
analysis and consumer interviews.
● And analyzed the disposal rates and resolution status of
cases across various levels of redressal commissions,
including district, state, and national forums.

3. Identification of Dominant Grievance Sectors:

● Our research encompasses the study of the top sectors

contributing to consumer grievances, such as insurance,
banking, telecommunications, e-commerce, healthcare,
and real estate.
● And also comprises of the nature of complaints within
each sector, including billing errors, product quality
issues, service delays, and misleading advertising.
4. Consumer Perspectives and Experiences:

● We have incorporated insights from consumer interviews

to understand firsthand experiences with grievance
redressal mechanisms.
● And have explored consumer preferences for
communication channels, expectations regarding timely
resolution, and satisfaction levels post-complaint filing.

5. Comparison of Regional Trends:

● Using the secondary sources, we have compared the

intensity and types of consumer grievances across states,
focusing on Maharashtra, Uttar Pradesh, Delhi, and
Karnataka.
● Also, identifying regional variations in the disposal rates,
efficiency of redressal mechanisms, and prevalent sectors
of complaints.
9. Methodology
In order to achieve a thorough comprehension of consumer
grievances, we utilized a mixed-methods strategy, blending
quantitative and qualitative methodologies. This approach
encompassed the following procedures:

1. Literature Review:

We conducted an extensive review of academic literature,

industry reports, and legal documents related to consumer
protection, grievance redressal mechanisms, and consumer
behavior. This step allowed us to establish a theoretical
framework and identify key themes and research gaps.

2. Questionnaire Design:
Based on insights gained from the literature review, we
designed a structured questionnaire to gather quantitative
data on consumer experiences, preferences, and perceptions
regarding various aspects of consumer grievances. The
questionnaire included closed-ended questions to facilitate
statistical analysis.

3. Survey Administration:
The questionnaire was distributed offline to a diverse sample
of consumers across different demographic groups, including
age, gender, income level, and geographic location. (The filled
questionnaires are being attached with the research work, to
ensure smooth and better understanding)
4. On Field observations
Our research involved visiting district consumer forums to
gain insights into consumer grievances and the resolution
process. By immersing ourselves in these real-world settings,
we were able to observe firsthand the challenges faced by
consumers and the dynamics of complaint resolution
procedures. Witnessing the interactions between consumers
and forum representatives provided valuable insights into the
issues commonly raised, the effectiveness of resolution
mechanisms, and the overall satisfaction levels of consumers
with the process. This direct engagement with the field
allowed us to capture nuanced insights that wouldn't have
been possible through desk-based research alone, enriching
our understanding of consumer rights and dispute resolution
mechanisms.
5. Interviews:

In addition to the questionnaire, we conducted semi-

structured interviews with select participants to gain deeper
insights into their experiences and perspectives on consumer
grievances..

6. Integration of Findings:

The quantitative and qualitative findings were integrated to

provide a comprehensive overview of consumer grievances,
combining statistical trends with real-life anecdotes and
perspectives. This triangulation of data enhanced the
robustness and credibility of our research findings.
7. Presentation of Results:
 The findings from our research were synthesized and
presented in a clear and accessible manner, utilizing visual
aids such as charts, graphs, and excerpts from interviews to
illustrate key points. The presentation aimed to convey a
nuanced understanding of consumer grievances and their
implications for businesses and consumers alike.

By employing this methodological approach, we aimed to

conduct a rigorous and thorough investigation into consumer
grievances, shedding light on the challenges faced by
consumers and informing potential solutions for addressing
them.
10. Period of Project
This comprehensive research report was completed within a
period of three months, from March 2024 to May 2024.
11. Conclusion
In our research on consumer issues in India, we used a
comprehensive approach involving data analysis, insights from
interviews, and studying existing information. This helped us
understand the various problems consumers face, evaluate
how well current solutions work, and find ways to make things
better.
We found problems like incorrect bills and misleading product
information across different sectors like telecommunications,
banking, e-commerce, and healthcare. This shows the need for
stronger consumer protection laws and better oversight.
Despite some good initiatives like the National Consumer
Helpline, there are still issues like delays in legal processes
that need fixing to help consumers faster.
Listening to consumers' stories and experiences added depth to
our research. Their real-life examples helped us understand
the issues better.

Our main focus was on making consumers more informed and

powerful. We believe that when consumers know their rights
and how to solve problems, it makes the marketplace fairer.
We suggest working together to improve things, including
better laws, easier ways to solve problems, educating
consumers, and making companies more responsible. This
needs cooperation from government, businesses, advocacy
groups, and society.
Moving forward, we'll keep researching, involving
stakeholders, and coming up with new policies. Our goal is to
create a consumer-friendly system built on trust and fairness
for a better future for everyone involved.