May 2021

RBI Proposes “One Nation One Ombudsman” Source: “One Nation One Ombudsman” approach for grievance redressal. (2021). The Hindu Business Line. Dated: 5th February, 2021 The Reserve Bank of India, on Friday, proposed the ‘One Nation One Ombudsman’ approach for grievance redressal, in a move aimed at enhancing consumer protection. “To make the alternate dispute redress mechanism simpler and more responsive to the customers of regulated entities, it has been decided to implement, inter alia, integration of the three ombudsman schemes and adoption of the ‘One Nation One Ombudsman’ approach for grievance redressal,” said the Statement on Developmental and Regulatory Policies. This is intended to make the process of redress of grievances easier by enabling the customers of the banks, NBFCs and non-bank issuers of PPIs to register their complaints under the integrated scheme, with one centralized reference point, it said. THE INTEGRATED OMBUDSMAN SCHEME WILL BE ROLLED OUT IN JUNE 2021. As an alternative dispute resolution mechanism, three ombudsman schemes – Banking Ombudsman Scheme, Ombudsman Scheme for Non-Banking Financial Companies and Ombudsman Scheme for Digital Transactions – are in operation from 22 ombudsman offices of the RBI located across the country. The RBI had operationalized complaint management system portal as a one-stop solution for alternative dispute resolution of customer complaints not resolved satisfactorily by the regulated entities. “The proposed Integrated Ombudsmen Scheme combining the schemes of banks, NBFCs and Non-Bank Prepaid Payments Issuers will help in easy lodging of customer grievances and addressing. It is a step in the right direction for improving the customer service in banks,” said Mr. Rajkiran Rai, Chairman, Indian Banks’ Association and Managing Director and CEO, Union Bank of India. A WELCOME MOVE? – Mandar Agashe, Founder and MD, Sarvatra Technologies, said with interoperability among various payment systems on the rise, the RBI’s new ombudsman approach is a welcome move. “It’s a big step to bring more effectiveness and speed similar to one nation one card,” he said.

Consumer: Mr. Vikash Kumar Complaint ID: 10022406 Today, I have donated a sum of  Rs. 1000/- in your Corpus so that you can take forward your mission of protection of rights of all consumers. I would like to convey my heartfelt thanks to “Consumer Online Foundation” for considering my case on priority. I was very upset with the behavior of ******** when one of my official colleagues reminded me about your esteemed organization. I was aware of “Consumer Online Foundation” and Hon’ble Bejon Misra Sir when I was working in the National Institute of Biologicals, Noida. From the time I lodged my complaint for non-refund of my booking amount by the above Builder although they were defaulters, the Consumer Online Foundation team started following the case with the builder till its conclusion.I would like to say as per my experience that “Consumer Online Foundation” is the only organization who is standing day and night with the protection of rights of Consumers. The entire team works in a very organized, professional and transparent manner. Consumer: Ms. Shilpi Sen Complaint ID: 10022463 Hi Jago Grahak Jago Team, I am really happy with the service you’ve provided to me in getting my refund from ********. Please let me know where can I provide a public feedback for you. Also, I am anyway going to post a great feedback for you on my FB and LinkedIn Post. Thanks a lot again.

Ten Global Consumer Trends for 2021 – The Wall Street Journal Dated: 20th January, 2021 Many of the new habits consumers formed during the coronavirus pandemic are here to stay, market researcher Euromonitor International predicts. People will expect increased activism from brands they use, new options for digital services in their daily lives, and more help in achieving mental and physical wellness. Though some of this year’s trends are directly related to Covid-19—like heightened safety concerns and demand for more open-air spaces—these shifts will continue after the pandemic wanes, says Alison Angus, Euromonitor’s head of lifestyle research. “These changes happened so quickly and have quickly manifested for the long term,” she says. Euromonitor, a global market-research firm based in London, has released its forecasts since 2010. Last year, just three months after publishing its January 2020 predictions, it revised its expectations to reflect dramatic shifts in consumer behavior spurred by the pandemic, flagging new trends like the home’s transformation into a multifunctional refuge used for work, school, leisure and exercise. It also noted the pause of other trends like previously rising privacy concerns. Here are some of Euromonitor’s predictions for this year’s big global consumer trends: #1 More Brand Activism- Consumers paid closer attention to companies’ actions during the covid-19-fueled lockdowns and will take social and environmental issues more seriously after the pandemic ends, Euromonitor says. People will increasingly demand that companies protect the health and well-being of their workforce, help local communities, and promote ambitious sustainability goals. During the pandemic, “all of a sudden the air cleared, wildlife came out to play and everything was so much nicer,” says Ms. Angus. “It’s made consumers realize that actually we want this greener, cleaner climate.” #2 Spontaneity and Convenience- People miss the spontaneous activities and impulse purchases of their pre-pandemic life—running errands, attending social events, dining out—and they want digital commerce to offer a similar experience, the market researcher says. (It also noted that younger consumers prefer digital interactions while 68% of consumers over the age of 60 prefer speaking with human customer-service representatives.) “We really want that on-the-go coffee, that walk and stop for lunch somewhere, that flexibility and ease,” says Ms. Angus. “Companies have to find alternative ways to enable that spontaneity in some form.” #3 Open Air- Even after the pandemic, people’s desire for outdoor spaces for work, events and recreation will remain strong, Euromonitor says. “Businesses need to create their own outdoor oasis,” the report says. “Adaptation might become more complicated and costly depending on the weather, but open-air structures and heating and illumination systems will pay off due to heightened demand for safe venues and the aesthetic that could continue attracting consumers.” #4 Physical and Digital Worlds- Video calls, connected appliances, smart phones, and technology such as augmented reality have helped consumers stay virtually connected during the pandemic despite being physically separated. Time spent straddling physical and digital worlds is what Euromonitor calls “phygital reality”—a hybrid where consumers seamlessly live, work, shop and play both in person and online. Offering new ways for consumers to combine digital and physical capabilities—say, personal-shopping appointments via video conferencing—will be necessary for businesses to boost sales (and collect data on their customers). Consumers quickly embraced “phygital reality” in the pandemic, but its use will remain long after, Ms. Angus says. “Our kids don’t even think about whether something has technology or not, they just expect even a stuffed toy to have interactive technology,” she says. “As those generations become older, it becomes the new normal.” #5 New Schedules- Staying home more has pushed consumers to be more creative with their time and more deliberate in organizing their daily schedules as they juggle their work, family, and personal lives. So much multitasking means that consumers now expect businesses to offer more flexibility, too. Euromonitor predicts that consumers will demand a 24-hour service culture. “As more and more consumers try to cram more into their day, they’re trying to get time back through services and products that help them do it,” says Ms. Angus. #6 Revenge Spending- Many people are distrusting of leadership and government, and bias and misinformation are feeding a crisis of confidence, Euromonitor says. That’s driving some consumers to rebel by placing their own needs and wants first. Lockdowns world-wide have led some to “revenge shopping,” or splurging, after being homebound for months, as well as seeking out illegal parties and online gambling, Euromonitor says. Affordable luxuries like alcoholic drinks, indulgent packaged food and video games are also on the rise. “Revenge spending is evident among those who can afford it or have saved money from being homebound and not going out,” says Ms. Angus. “These consumers are spending on indulgences for themselves or their homes in order to make them feel better.” #7 Thoughtful Frugalities- In contrast to those who want to splurge, another group of shoppers is suffering financial hardships from job losses and economic instability that is forcing thrifty spending behavior, Ms. Angus says. Some consumers will identify with both trends, she says, trading down on some items in order to be able to spend more on others, like affordable luxuries and experiences that boost their physical and mental well-being during this crisis. This “trading down to trade up” is an accelerating trend during the pandemic. “Thrifty yet restless consumers are reviewing and adjusting their spending to support diverse and contradictory needs,” says Ms. Angus. #8 Safety Obsessions- Safety is the new wellness movement, according to Euromonitor. Frequent hand-washing and wearing masks have become widely normalized habits, and contactless payments became more common as people shy away from handling unclean cash. “Consumers will be more fearful going forward about any future health concern,” says Ms. Angus. “I think we will care a lot about safety for a long time.” #9 Greater Self-Awareness- The global pandemic forced consumers to reconfigure their lives and test their mental resilience amid health risks, economic hardship and isolation. Now they are reassessing their priorities, identities and work-life balance, Euromonitor says.

The Consumer Protection Act of 2019 defines a “consumer” under Section 2 as follows:  “consumer” means any person who— (i) buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment, when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for any commercial purpose; or (ii) hires or avails of any service for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such service other than the person who hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person, but does not include a person who avails of such service for any commercial purpose. Explanation.—For the purposes of this clause,— (a) the expression “commercial purpose” does not include use by a person of goods bought and used by him exclusively for the purpose of earning his livelihood, by means of self-employment; (b) the expressions “buys any goods” and “hires or avails any services” includes offline or online transactions through electronic means or by teleshopping or direct selling or multi-level marketing.

Prof Bejon Misra on the Unfortunate and Iniquitous Indian Dichotomy in Tobacco Legislation “Merely increasing taxes on certain tobacco products is not a wholesome solution. If the laws cause discomfort to the addicted consumers, it will only push them into a more rebellious and devil-may-care stance. Why not consider educating people about the rampant harmful effects of tobacco consumption and encourage them on the path from addiction to deaddiction by once again starting the 24×7 Toll Free Tobacco Control Helpline and promoting deaddiction centres, apart from a comprehensive policy to address the root cause of ineffective tobacco law and its enforcement.  Come to think of it – Can we consider bringing in a complete ban on tobacco products – aka prohibition – where tobacco is sold only under licenses where necessary? Tobacco is a silent killer – it causes a lifetime of misery and suffering for both the addicts and their families. But will such discriminatory and knee jerk reactions resolve the issues? The government should consider better mechanisms for safeguarding public health that do not cause unnecessary discomfort to the helpless, voiceless, legitimate and addicted consumers.” Attachment: Article Dichotomy of Tobacco Amendment Bill (PDF)

Report on Supreme Court Judgments for the Consumers -by Law Student, Abhishek Nema This report is exclusively brought to you by an intern of Consumer Online Foundation in the form of a brief analysis of 3 judgments pronounced by the Supreme Court of India for the benefit of the consumers of the country. With a personal touch and easy to understand language, this report talks about the window of appeal in any consumer matter, the power of review of the Courts and an effect of the 2002 Amendment. Have you ever been denied your insurance because you got late to inform the Insurance Company about your claim? If yes, this is what you need to know. Attachment: Snippets by Abhishek Nema (PDF)

RBI Proposes “One Nation One Ombudsman” Source: “One Nation One Ombudsman” approach for grievance redressal. (2021). The Hindu Business Line. [online] 5 Feb. Available at: https://www.thehindubusinessline.com/money-and-banking/one-nation-one-ombudsman-approach-for-grievance-redressal/article33760595.ece [Accessed 21 Apr. 2021]. Dated: 5th February, 2021 The Reserve Bank of India, on Friday, proposed the ‘One Nation One Ombudsman’ approach for grievance redressal, in a move aimed at enhancing consumer protection. “To make the alternate dispute redress mechanism simpler and more responsive to the customers of regulated entities, it has been decided to implement, inter alia, integration of the three ombudsman schemes and adoption of the ‘One Nation One Ombudsman’ approach for grievance redressal,” said the Statement on Developmental and Regulatory Policies. This is intended to make the process of redress of grievances easier by enabling the customers of the banks, NBFCs and non-bank issuers of PPIs to register their complaints under the integrated scheme, with one centralised reference point, it said. The Integrated Ombudsman Scheme will be rolled out in June 2021. As an alternative dispute resolution mechanism, three ombudsman schemes – Banking Ombudsman Scheme, Ombudsman Scheme for Non-Banking Financial Companies and Ombudsman Scheme for Digital Transactions – are in operation from 22 ombudsman offices of the RBI located across the country. The RBI had operationalised complaint management system portal as a one-stop solution for alternative dispute resolution of customer complaints not resolved satisfactorily by the regulated entities. “The proposed Integrated Ombudsmen Scheme combining the schemes of banks, NBFCs and Non-Bank Prepaid Payments Issuers will help in easy lodging of customer grievances and addressal. It is a step in the right direction for improving the customer service in banks,” said Rajkiran Rai, Chairman, Indian Banks’ Association and Managing Director and CEO, Union Bank of India. ‘A welcome move’ Mandar Agashe, Founder and MD, Sarvatra Technologies, said with interoperability among various payment systems on the rise, the RBI’s new ombudsman approach is a welcome move. “It’s a big step to bring more effectiveness and speed similar to one nation one card,” he said.