The art of becoming an intelligent
consumer
Consumer alert
By M.R. Pai

A FEW commonsense hints can help the average consumer to become an intelligent consumer and get the best out of his/her money in the daily ballotting of Economic Democracy.

Purchases: Apply the NAW formula. Whenever you see something there is an impulse to buy it. Ask three questions to yourself before you take a decision. First, "Do I need it?" If you need it, the second question is, "Can I afford it?" If answers to both questions are in the affirmative, then the third question is, "Is it worth the price quoted?"

This simple formula will save a good deal of money.

Money saved is indeed money earned.

Coins and Currency: Always carry enough change in coins and notes of various denominations. Unfortunately, small coins are a problem. They are the responsibility of the Government of India, but their distribution is the responsibility of the Reserve Bank of India. Periodically there is mismatch between demand and supply. In recent weeks, the RBI has started supply in small quantities to bank depositors. Consumers all over India should mobilise public opinion to ensure sufficient supply of coins directly to the public through their banks. Unfortunately, banks are reluctant to serve their customers by direct distribution of coins because of space constraints in storing them, and the labour involved in handling coins.

While withdrawing money from your bank account, write the denomination of notes required on the reverse of the cheque, and insist on the bank giving you notes and coins you require.

Transaction: While concluding a deal, at the time of a purchase or transaction, add up while receiving the balance of amount. For instance, if the price is Rs 7.30, do not deduct mentally Rs 7.30 from Rs 10 but add the change received to Rs 7.30 paise 70 plus Rs 2 to make up Rs 10/-.

While paying currency notes, count the notes individually while handing them over. Also, if they are of a higher denomination, such as Rs 100 or Rs 500, for a small payment then point out the higher denomination. This prevents consumers from being cheated by unscrupulous vendors of goods and services who confuse the consumer saying that less than the number of notes have been given by them or insist that they have received Rs 10 and not Rs 100 notes. This is a common trick played on consumers.

Big purchases or payments: While buying costly durable consumer goods like refrigerators or paying electricity, insurance or phone bills, always pay by crossed and A/c payee cheque. Cross the cheque and mark "A/c payee only". On the reverse of the cheque write your name and details of payments: e.g., towards electric mixer, vide bill No. __________ of _______ trader’s (name of shop) or payment of electricity bill no. _______ for the period _______.

In the event of getting a reminder to pay again a bill which has already been settled (e.g., an insurance premium or telephone bill) check the bank passbook to ensure that the cheque has been encashed, and after giving these particulars of payment, if the demand persists thereafter threaten the filing of a police case against the person demanding payment for misappropriation since the cheque has already been encashed. For the purpose a photocopy of the cheque paid (both sides) as proof from the bank. Your payment will be traced in a jiffy!

Receipt: Insist on a bill for every major purchase, and even for small items such as medicines. It is a proof for any complaint to be made either to the vendor or to the consumer court. The practice of forgoing a bill to save on sale tax etc is wrong. The tax is paid to the Government to provide people with basic infrastructure of a civilised life.

A bill helps to fight for your rights as a consumer in other ways also. For instance, many years ago, a chemist insisted that he will sell only a pack of 10 vials (very costly ones at that) whereas as per doctor’s prescription the purchaser wanted only two vials. As his son was critically ill, he had no time for further arguments or going in search of other chemists who would sell only two vials. So, he paid the amount but insisted on a bill. When his son got well, he wrote a letter to MRTP Commission, enclosing a photocopy of the bill, saying that it appeared like a violation of MRTP Act, i.e., selling to a consumer something he does not need beyond a prescribed quantity.

A copy of the letter was sent to the Drug Controller of the State. The very next day the Drug Controller visited the chemist for an inquiry into this malpractice. MRTP issued a press note and publicised it extensively over radio and in the Press — it was in pre-TV days — of consumers’ right to get only prescribed quantity of medicines. The chemist went to the house of the complainant and refunded the excess amount, and apologised to him. This simple complaint saved many consumers thereafter from similar harassment.

Guarantee/warranty: When buying a durable consumer product like an electric iron, get a guarantee/warranty card with stamp of the selling shop and date. Fill it in and post it to the manufacturer. Retain photocopy. In case of malfunctioning of the unit, it becomes handy.

A guarantee is against any manufacturing defect, and a warranty is an assurance of proper performance.

See if the item bears an ISI mark issued by the Bureau of Indian Standards. In case of a defect, if the seller does not agree to put the unit back in working condition or replace it, if it is totally defective, the consumers can invoke "the third party guarantee". That is, a complaint can be made to the Bureau of Indian Standards, which has branches in many big cities. The Bureau of Indian Standards has set the standards for that manufactured item, and will ensure that the consumer will get the item of prescribed standards.

Some consumer tips: Avoid buying on a holiday when many shops are closed. The prices are always a little more on a holiday. This is market psychology.

In some places, prices are fixed, and there is no bargaining. If there is flexible pricing, shop around and buy from the best place for a good bargain.

Avoid sales. Many of them are bogus. Prices are jacked up first and then the 20 or 30 per cent cut is announced. Sometimes, old stock is passed off as new, and sold at a discount.

In a genuine sale, the consumer will be told that it is a clearance of old stocks or of slightly defective goods. For instance, export quality is rigorous, and goods are excluded from export consignment even if there is a minor defect. Such items are really good for all practical purposes and are a bargain in a genuine sale.