CONSUMER RIGHTS

Second helpings

Pushpa Girimaji on the need to lay down adequate safety norms for the sale of second-hand goods

"Exchange offers" by manufacturers have created in the recent years a large market for used or second-hand goods. Earlier mostly cars entered the ‘second hand’ market but today the ‘used goods’ market has expanded considerably to offer a variety of electric and electronic goods as well.

The second hand market has brought goods like television sets, refrigerators, computers and cell phones within the reach of those who cannot otherwise afford to buy them. And this has also created a special class of consumers who buy these goods and need protection against sub-standard and unsafe second-hand goods.

Even if the goods are not brand new and have been used, they should have a reasonable life and be absolutely safe. After all, even used goods do not come cheap and those who buy them too have a right to a fair deal, besides other consumer rights such as the right to be protected against unsafe and hazardous goods, the right to information and the right to quality goods at competitive prices.

In several countries, regulations protect consumers buying certain second-hand goods. In the United Kingdom, for example, anyone selling second-hand electrical goods should meet the legal safety requirements. Those who sell unsafe or incorrectly labelled electrical goods are liable to be prosecuted and punished with imprisonment and fine.

In the United States, where an estimated 40 million used cars are bought every year, the Federal Trade Commission enforces ‘Used Car Rule’ to protect the interests of buyers. The Rule requires that the dealers post a one-page Buyers’ Guide or a disclosure document in every car to ensure that consumers get information in writing about any warranty protection that they have if there is a problem with the car after purchase. The Guide becomes a part of the sales contract and overrides any contrary provisions contained in the sales contract. The Guide also gives consumers certain important suggestions and warning including the need for asking the dealer to put any promises that he may make in writing.

Unfortunately, we do not have any such specific safeguards for consumers buying second hand goods in India. A consumer can seek relief from consumer courts if the seller makes tall promises that turn out to be untrue or the dealer does not stick to his side of the deal. But there are no specific laws protecting such buyers, nor standards for such used goods.

Consumers International, a coalition of consumer groups worldwide, has been lobbying for international standards for second-hand goods. CI’s argument has been that everyday millions of people around the world buy used or second-hand goods. The consumers buying these need even more protection than those buying new goods. Such goods should meet agreed health and safety standards and the potential buyers should have access to clear product information.

In February 2004, the International Organisation for Standardisation announced that it would develop standards for used goods, giving priority to standards for second-hand tyres, vehicles, clothes, besides electrical and electronic items. It is time we also followed the suit and had specific standards to protect consumers. We also need to ensure that manufacturers do not escape liability for second hand products by imposing unfair terms and conditions in the sale contract.

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