The Aware Consumer

The number of cases registered against adulterated, sub-standard or misbranded food items has shown a rising trend during the past couple of years. As per the official data, total 24,195 civil cases and 3,869 criminal cases were lodged by the concerned food safety authorities in various parts of the country during 2020-21 which increased to 28,906 civil cases and 4,946 criminal cases in 2021-22. The food safety authorities analysed 1,07,829 samples in 2020-21 out of which 28,347 samples were found non-confirming to the prescribed standards. Similarly, total 1,44,345 samples were analysed in 2021-22 out of which 32,934 were found non-confirming. The government data said that a total 5,220 and 4,890 samples were found unsafe, out of the total samples analysed during 2020-21 and 2021-22. Food Safety and Standards Authority of India (FSSAI), the apex food safety body in the country, is mandated to lay down science-based standards for food articles and to regulate their manufacture, storage, distribution, sale and import to ensure availability of safe and wholesome food for human consumption. Section 31(1) of Food Safety and Standards (FSS) Act, 2006 provides that no person shall commence or carry on any food business except under a license. Surveillance of food business operators is conducted regularly through intensive surveillance drives by states and Union Territories (UTs). Officials said that the responsibility for implementation and enforcement of FSS Act 2006, Rules and Regulations made thereunder primarily lies with state and UT governments. While authorities analyse samples, penal action is initiated against the defaulting food business operators (FBOs) by the food safety officers of states/UTs as per the provisions of FSS Act, 2006, Rules and Regulations. Regarding foods for medical purpose including protein powder and other such items, FSSAI has notified FSS (Food or Health Supplements, Nutraceuticals, Foods Special Dietary Use, Foods for Special Medical Purpose, Functional Foods and Novel Foods) Regulations, 2016, which specify provisions for regulation of these products in the country. The articles of food covered under these regulations are required to comply with the general labelling requirements under the FSS (Packaging and Labelling) Regulations, 2011. Officials said that since these products are intended for specific physiological conditions or general maintenance of health and are required to be taken as per the regulated usage levels by the specific targeted group, labelling provisions for specific food product categories have also been specified under the said regulations. These regulations say that the label on such articles of food shall specify the purpose, the target consumer group and the physiological or disease conditions which they address and recommended duration of use. The label, accompanying leaflet or other labelling and advertisement of each type of article of food should also provide sufficient information on the nature and purpose of the article of food and detailed instructions and precautions for its use, and the format of information given shall be appropriate for the intended consumer. Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and is responsible for accuracy, completeness, suitability and validity of any information in this article.

As we gear up to welcome 2023 with great enthusiasm and hope, we must remember that criminal gangs also feel the same. They have also lined up great plans to dupe people with their ever-successful toolkit of fear and greed. So what we, as end-users of online and digital products, should do is stay vigilant and aware of traps laid by cybercriminals. This is important because those who follow some universal rules of online engagement are less likely to be harmed in 2023 and beyond. I also want to tell you about recent cases of fraud, where criminals targeted bank accounts and insurance policies of people who are dead. Impersonating the Dead! A few months ago, I had warned about a new scam where fraudsters are found impersonating individuals or businesses. Cybercriminals are now finding easier targets – people who are not in a position to be vigilant or check their accounts because they are dead. Criminals have found ways to withdraw money from bank accounts or file insurance claims in the names of deceased persons. How does this work? According to a report from Mid-Day, the police registered two cases wherein fraudsters have withdrawn money from bank accounts of deceased persons. Salim Beg died in February 2021. His wife Akhtari went to Great Bombay Co-Operative Bank Ltd in Dahisar East, to submit her husband’s death certificate and claim the funds in his accounts. The bank manager told her to produce an affidavit and succession certificate to claim Mr Beg’s account. She filed an application in the Bombay High Court (HC) for the succession certificate. However, a couple of months later, she received a call from the bank manager about transactions in her husband’s account, where someone had transferred Rs5.89 lakh. “According to the manager, two similar incidents had occurred in the branch earlier and the people concerned had lodged complaints at the Dahisar police station,” the report says. In another case, two employees of an outsourcing agency were arrested by the Goregaon police on 15 December 2022 for allegedly stealing Rs1.30 crore from the account of Dr Hirendra Pal, a customer of State Bank of India (SBI), who died in October 2014. “Police investigation revealed that the victim’s know-your-customer (KYC) details were updated at the Jawahar Nagar branch of SBI in Goregaon and once this was done, the amount was transferred via mobile banking to over dozens of bank accounts in Mumbai,” the report says. The newspaper report also shares how two employees of an insurance company settled about 50 policies by transferring Rs1.5 crore to their relatives’ bank accounts. Both the employees had access to the policy and bank details of customers from across the country as part of their job of handling cases where policyholders have stopped paying premiums. Police have arrested the duo. According to a former banker and consumer activist, Abhay Datar, the family members of a deceased person can file an application with the bank and request a debit freeze on the account. “This,” he says, “will prevent withdrawals or outbound transfers from the account while keeping creditline intact to receive payments, if any, in the deceased person’s bank account.” Whether sudden or expected, the death of a loved one or parent is a difficult time for us. In these circumstances, handling financial matters while coping with emotional pain can be stressful. You may want to read an article on ‘How To Handle Inheritance Issues on the Death of a Parent/ Spouse?’ Universal Rules To Stay Safe Online The end of the year is traditionally a time for reflection and also to look at the emerging trends shaping our future. Here I am talking about our digital lives. Security software provider Avast has three major predictions for 2023. Ransomware will become an increasingly serious problem; scams will continue to be a favourite method for cybercriminals; and cybercrime as a business will become even more sophisticated, it says. Michal Salat, threat intelligence director at Avast, says, “Cybergroups go to many lengths to tap into people’s worst fears to deceive them into sending money or giving up personal data because it is easier to make people vulnerable than hacking their devices.” As experts keep pointing out, cybercrime has become a business, growing at an alarming speed, and thus capturing various spaces in cyberspace. A more worrying factor is the easy availability of hacking tools, malware and other toolkits used for cybercrimes. For example, some open-source malware are now readily available for distribution on platforms like Discord. “People, including young people with less technical knowledge, can now get their hands on malware and may be more inclined to join the dark side given current economic hardships,” Mr Salat says. While no remedy or permanent injection is available to remain safe online, here are some universal rules to follow. Dos: For support, visit the official website of service-providers Remember that no service-provider will ever ask you to verify your account over a call. Regularly change passwords and personal identification numbers (PIN) of accounts and credit cards. If the option for two-factor authentication is available, then use it. Don’ts: Don’t click on links shared by unknown people through SMS, e-mail and WhatsApp. Don’t download any unauthenticated app on your mobile suggested through a suspicious SMS, e-mail and WhatsApp. Avoid clicking on links and downloading attachments. Trojans, which can bring rootkits, spyware or adware with them, often slip into your device disguised as a harmless attachment. Don’t use search engines for customer support numbers. Don’t share sensitive and confidential information like your user (login) ID, account number, debit or credit card details and one-time passcode (OTP) with anyone. How To Report Cyber Fraud? Do report cyber crimes to the National Cyber Crime Reporting Portal http://cybercrime.gov.in or call the toll-free National Helpline number, 1930. To follow on social media: Twitter (@Cyberdost), Facebook (CyberDostI4C), Instagram (cyberdostl4C), Telegram (cyberdosti4c). Source: moneylife.in

The National Consumer Disputes Redressal Commission (NCDRC) directed Kokilaben Dhirubhai Ambani Hospital and Medical Research Institute in Juhu (Mumbai) and a doctor from the hospital to pay Rs40 lakh compensation in equal proportion to a patient for alleged medical negligence and deficiency in service. The order, if not implemented within six weeks, will carry an interest of 9% per annum till its realisation. The patient had suffered paraplegia after surgery at the Hospital and informed consent about it was not undertaken. In an order issued this week, presiding member Dr SM Kantikar says, “Dr Mihir Bapat is held liable for the act of ‘commission’ and ‘omission’ during the treatment of the patient. Also, the hospital is vicariously liable for the deficiency in services. It was the duty of the hospital to ensure the standard of patient care. The doctors or the concerned staff were accountable, who failed to adhere to the Standard operating procedures (SOP).” “Adverting to the compensation, I would like to rely upon the law laid down by the Supreme Court. The patient post-operatively suffered irreversible damage- i.e. paraplegia for his remaining life. The complainant deserves just and reasonable compensation because such a patient needs an electric bed, air mattress to avoid bed sores, deep vein thrombosis (DVT) pump to avoid deep vein thrombosis, automated wheelchairs and walker,” NCDRC noted. The case is related to a complaint filed by Rohandeep Singh Jaswal, through his constituted attorney and father, Sanjeev Jaswal, against the Hospital and its 12 doctors, including Dr Bapat. Mr Jaswal had consulted Sir Ganga Ram Hospital in Delhi for his son’s kyphoscoliosis spinal deformity when he was 12 years old. It was diagnosed as an intramedullary tumour and operated in October 2004. The tumour was reported as non-cancerous ganglioglioma, but the doctors advised to take care and accordingly, magnetic resonance imaging (MRI) was done yearly. In 2012, the MRI revealed a tumour of shrunken size. Since the Jaswals had moved to Ahmedabad, he sought consultation at Shalby Hospital there. The doctors suggested 65% correction through surgery with a neuro-monitoring machine and related facilities to avoid neurological complications. In February 2014, the patient consulted Dr Bapat at Kokilaben Hospital in Mumbai. It was alleged that the patient was told that as the spine is flexible, 80%-90% correction is possible. The operation was scheduled on 16 April 2014, but was postponed to 23 April 2014, as the neuro-monitoring machine was under maintenance. Mr Jaswal, in his complaint, alleged that no informed consent was taken. “The surgery took a long time, from 7am to 4pm. After the surgery, the patient was shifted to a room. Dr Bapat came to the room and informed that the patient regained consciousness but not moving his legs; therefore, re-surgery was necessary for releasing the implants and to reduce the correction as carried out in the spine.” However, after surgery, the patient’s parents were shocked to hear that there was no leg movement and there was no sensation below the chest (rib cage) of their son. The patient also suffered from meningitis. It was further alleged that the patient heard the doctors’ conversation that they should not have accepted and operated on the case. Dr Bapat did not inform the condition as it was ‘paraplegia’. After that, the condition of the patient continued to deteriorate. On 27 July 2014, Rohandeep was discharged from Kokilaben Hospital in paraplegic condition (loss of senses below the rib cage), with no bowel and urine control. For the daily routine activities of the patient, an attendant was needed. Till 7 February 2015, he remained admitted to Dhirubhai Ambani Occupational Health. The family consulted a number of doctors, but Rohandeep’s condition did not improve. As advised by Dr Bhoj Raj on 4 October 2014, a contrast computerised tomography (CT) myelography test was performed. It revealed D-8 vertebra was slightly wedged before surgery and got totally crushed during the surgery, indicating severe stretching or blockage at the point of the vertebra. The Jaswals then filed a complaint before NCDRC seeking compensation of Rs58.92 crore from the Hospital and the doctors. The Commission, in its order, observed that the consent forms for anaesthesia and surgery were devoid of details about the risks of paraplegia. It also said that the doctor did not seek the opinion of a neurosurgeon. “A specific query was put to the authorised representative (AR) (of Dr Bapat) about the informed consent in the instant case. He submitted that the patient had the knowledge of spinal surgery and moreover during every visit and discussion with Dr Bapat, it was explained to the patient and his parents about the operation and its complications. According to AR it was deemed to be consent. The documents on record are unsigned prescriptions which in my view it does not construed as ‘informed consent’. Thus it is evident that Dr Bapat failed to obtain informed consent for surgery in the instant case,” Dr Kantikar from NCDRC says. Describing informed consent as one with four components – decision capacity, documentation of consent, disclosure, and competency – the NCDRC stated that the two well-recognised exceptions are medical emergencies and another is a ‘rare’ case. Calling neurosurgery and orthopaedic surgery as two high-risk specialities associated with some of the highest numbers of medical negligence litigations, the Commission said that spinal surgery, most commonly at the lumbar level, has the highest rates of litigations. Source: moneylife.in

Security experts have regularly warned that great convenience or ease of use usually comes with serious negative implications for your privacy and security risks. The newest and hottest electronics or internet of things (IoT) gadgets, such as smart speakers, video doorbells and fitness trackers, are no exception. They have been found to be ‘listening’ to your conversations or ‘recording’ your moves without your knowledge or permission. I am not even talking about hacking or exploitation of gadgets by cybercriminals for collecting information, but an invasion of privacy and data collection that is happening most routinely in order to sell information to advertisers who will then pitch products and services to you. IoT gadgets such as Amazon Echo, Alexa smart home or Google Nest are a great convenience for most people. For those who sell you these devices, it is an opportunity to track your every activity and to measure, collect and analyse what you do to generate a comprehensive and ever-increasing variety of behavioural statistics. This data could then be sold and also be used by their own group entities for targeted marketing of products and services. For example, one evening, Calder B Price, a writer, discussed French callipers, and suddenly she was bombarded with advertisements of it across all websites. She is not alone, though. There are many users of these ‘smart devices’, who found similar bombardment for products or services that they discussed, which probably was ‘heard’ by the smart devices in their homes. IoT is the inter-networking of physical (smart) devices, vehicles, buildings and other items embedded with electronics, software, sensors, actuators and network connectivity that enables these objects to collect and exchange data. The ‘things’, in the IoT sense, refer to a wide variety of devices, such as heart-monitoring implants, bio-chip transponders, electric clams, automobiles with built-in sensors, DNA analysis devices and field operation devices that assist fire-fighters in search and rescue operations, to name a few. There are three interconnected aspects that define IoT: sensors, processors to analyse and actuators. In other words, sensors are the eyes and ears, smart processors are the brain, and actuators are the hands and feet of the IoT. This is the classic definition of a robot. The IoT gadget market, which was flooded with ‘mass produced’ (read Chinese) devices, now has some well-established players like Amazon and Google. Unfortunately, both of them are at the forefront when it comes to collecting data from users. In a blog post, Emma McGowan from Avast says, “Amazon is perhaps the most famous data-driven, data-consuming, data-tracking company out there. Google is also a little tricky in how they use the information gathered. As Mozilla’s excellent Privacy Not Included guide points out, Google promises not to use your actual voice recordings to gather info to sell you ads. However, they will use transcripts of those voice recordings, which seems like a semantic difference rather than a real one to us.” Amazon, however, claims that its smart devices have built-in privacy protection. “Alexa and Echo devices are built with multiple layers of privacy protection. For example, Echo Dot has a microphone off button that electronically disconnects the microphones. You also have control over your voice recordings,” it says on its product description page. Amazon Echo, Alexa smart homes, or Google Nest need to be woken up using a ‘wake word’. For example, Amazon uses ‘Alexa’, while on Google devices, it is ‘Ok Google’. Once these devices are made active using the wake word, they start recording and providing feedback. However, there have been concerns about these devices mistaking other words as the wake word and recording when people do not want them to. For example, instead of ‘Ok Google’, the device could be woken up by ‘Cocaine Noodle’ as well. And I am not even talking about voice modulation here.  When asked about security vulnerabilities, Amazon and Google keep saying that their voice assistant systems are secure. Maybe. But, as we know, modulating voice or fooling someone with another person’s voice has been the favourite game we have been playing since our childhood days. Add to this, voice recognition systems used for voice assistants and you will understand how easy it is to fool them too. Ms McGowan from Avast took a close look at the Ring video doorbell from Amazon. “Ring is, first and foremost, a surveillance tool. It’s marketed as helping you surveil your surroundings, but don’t forget that it’s keeping track of you and your family as well. Ring – and Amazon, its parent company – knows your name, email, postal address, and phone number. It also knows the geolocation of your phone, information about your Wi-Fi network and signal strength, and your product’s model, serial number, and software version. If you use Facebook or another third-party login, it also can “obtain information” from that third party.” “And then there is the issue of security. While Amazon is pretty good on that front, users generally are not. Anything from an unsecured network to a weak or stolen Wi-Fi password could let malicious actors gain access to the very sensitive information on your Ring. So if you do choose to get one this holiday season, make sure it is protected and updated regularly,” she advises. This brings us to the main question, whether one should buy and use these smart or IoT gadgets. These smart devices undoubtedly offer a wide range of benefits and are sometimes helpful. The other day, I heard my friend’s granddaughter ordering Alexa to play her favourite song… repeatedly (I doubt if the grandpa or grandma would sing the same song repeatedly as per the command of the toddler!). A straightforward solution could be to switch on the smart devices only when needed. However, when it comes to switching off devices, many of us behave like lazy people (do you remember how many times you have switched off the TV using the remote and not through the power button on the switchboard?). At the same time, we should

The Supreme Court (SC) on Tuesday said that the cinema halls have the right to set terms and conditions for the sale of food and beverages inside the halls and bar carrying of food items from outside. A bench, headed by chief justice DY Chandrachud said a cinema hall owner has the right to regulate the entry of food and beverages into the movie hall. The bench, also comprising justice PS Narasimha, said whether to consume what is available is entirely upon the choice of the movie goer and pointed out that viewers visit the hall for entertainment. The bench orally observed that cinemas are private properties and the owner can decide on the rights of prohibition. It added that if one wants to take ‘jalebi’ into the movie hall, the owner can object to it, because after eating the jalebi, the person might wipe his hands with the chair and ruin it unnecessarily. It said the cinema hall owner is entitled to put such terms and conditions which he deems fit if they are not contrary to public interest or safety. The Jammu and Kashmir High Court had directed owners of multiplexes/cinema halls of the state not to prohibit cinema-goers from carrying their own food articles and water inside the theatre. The cinema hall owners moved the apex court against the high court order. Senior advocate KV Viswanathan contended that since cinema halls were private properties, they reserved admission rights and prohibitions ensured security and could be seen at airports amongst other places as well. Counsel for the original petitioner submitted that the cinema ticket represents a contract between a movie-goer and the movie hall, since the prohibition is not printed on the ticket, outside food could not be prohibited. The bench said the cinema has a right to reserve admission and the cinema owners have a right to sell their own food and beverages. It further queried how can the high court say that they can bring any food inside cinema halls. Viswanathan argued that there is no compulsion to buy food in the movie halls and precincts of cinema halls are not public property. The bench added that hygienic drinking water is available for everyone for free and food for infants is also allowed, but not every food can be allowed inside the premises. It further remarked that it needs no emphasis that the rule-making power of the state must be in consonance with the fundamental right of cinema hall owners to carry out a business, trade, etc. The top court said the high court transgressed the limits on the exercise of its jurisdiction and set aside the direction to multiplexes and movie theatres not to prevent movie-goers from carrying their own food and beverages into movie halls. Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.  Source: moneylife.in

For those home-buyers who believe in oral promises of builders to pay equated monthly instalments (EMIs) on home loans till possession, here comes a shocker from the apex consumer forum. In a ruling, the National Consumer Disputes Redressal Commission (NCDRC) dismissed complaints filed by several home-buyers against Rajesh Lifespaces Pvt Ltd and Rajsanket Realty Ltd, the builder and developers and ICICI Bank Ltd about the builder paying EMIs till the possession of the flat is handed over to buyers. In an order combining seven complaints and issued earlier this month, the bench of justice Ram Surat Ram Maurya (presiding member) and Dr Inder Jit Singh (member) says, “Clause 9 of the sale agreement dated 17 August 2013, between the complainants and builders, mentioned that the promoters had entered into an agreement with ICICI Bank to promote subvention scheme popularly known as 20:80 for the benefit of their purchasers. It only means that the bank was ready to give a loan to the extent of 80% of the cost of the flat under the subvention scheme. It does not mean that the liability of the complainants to repay the loan or EMI was absolved till delivery of possession, as there was no such contract between the bank and the complainants. As such, the argument in this respect cannot be accepted.” One complainant, Akshay Gupta, had submitted two emails dated 23 July 2013 and 28 August 2013. In these emails, it was mentioned that “This loan is under developer subvention scheme for 36 months or possession, whichever is later.”  “In this sentence, it has been clearly mentioned that the loan is under the developer subvention scheme and not under any scheme of the bank. Similar sentence is incorporated in the agreement to sale between the complainants and the builder. The builders paid pre-EMI till April 2019. Under the facility agreement (standard format of the loan agreement) and undertaking, the complainants are bound to pay EMI if the builders stop payment,” NCDRC says. In this case, the complainants obtained a home loan and executed facility agreements. The bench observed that the buyers are liable to repay (loan) in accordance with the facility agreement, for which the complainants also executed an undertaking in which they took the liability to pay the EMI if the builder stopped payment of it. “Therefore, the complainants cannot deny the payment of EMI on the ground that under the sale agreement, the builders were liable to pay EMI till the date of delivery of the possession. Admittedly, the complainants withdrew from the sale agreement in 2018, therefore, there was no question of delivery of possession to them,” it says. The buyers have booked flats in Raj Infinia at Valnai in Borivali, Mumbai. Allured with the ‘subvention scheme’, the complainants applied and obtained home loans from ICICI Bank. The builders executed an agreement for sale on 17 August 2013, in favour of the complainants, stating in clause 9 that interest on the bank loan would be borne by the builder till the handover of the possession. However, in an email on 30 May 2019, the builders informed the home-buyers that they cannot pay EMI due to their poor financial condition. On 13 July 2019, ICICI Bank issued a letter informing the buyers that an EMI of Rs312,070 was due for more than 60 days and asked the borrowers to pay this amount within seven days. Since the EMIs were not paid, on 19 September 2019, ICICI Bank issued loan recall notices to these borrowers. During the hearing, ICICI Bank submitted that it did not have any agreement with the developers for the promotion of the project. “The complainants directly approached the bank for sanction of the loan. The complainants were defaulters; therefore, the loan recall notice was issued on 19 September 2019.” NCDRC also clarified a circular issued by the Reserve Bank of India (RBI) on 3 September 2013. It says, “…it (RBI circular) is advisory in nature and will have prospective application. The loan of the complainants was already sanctioned and facility agreement, as well as undertaking, were executed on 21 August 2013. The circular will have no effect on it.” RBI had issued an advisory on 3 September 2013, and had asked all scheduled commercial banks that housing loans to individuals should be closely linked to the stages of construction of the housing project as the banks run disproportionately higher exposures with concomitant risks of diversion of funds under 80:20 or 75:25 schemes.  (Consumer Case Nos63/172/174/175/177/255/67 of 2020  Date: 2 January 2023) Source: live Law

India launched a crackdown on Monday against fake consumer reviews and unverified ratings in a bid to make the online world and e-commerce more authentic and less misleading for users. The government has drafted guidelines for companies from Alphabet Inc’s Google, Meta Platform’s Facebook and Instagram, and Amazon.com Inc to travel sites and food delivery apps that depend on reviews to validate products and services. Positive reviews help generate sales and interest from potential buyers. Some companies have been criticised by consumers and industry experts for downplaying negative reviews, or accepting fake ratings, making the vetting process difficult for buyers. The named companies did not immediately respond to a Reuters email seeking comment. “Feedback mechanisms such as reviews are essential for consumer interest. We welcome the steps being taken by the government … and are obliged to be a part of the constituted committee,” said a spokesperson for Zomato. The Department of Consumer Affairs set up a committee in June to develop a framework for checking fake and deceptive reviews in e-commerce, the Ministry of Consumer Affairs, Food & Public Distribution said. “The new guidelines for online reviews are designed to drive increased transparency for both consumers and brands and promote information accuracy,” said Sachin Taparia, founder of LocalCircles, a community platform and pollster which made the initial submission to the Department of Consumer Affairs and was part of the committee drafting the guidelines. “As far as platforms like Google and Facebook go, the new rules will require them to validate the real person behind the review through specified 6-8 mechanisms which means fake accounts created just for review writing will go away over time or won’t be able to review,” said Taparia. Full details of the proposal are not yet public. “We do not want to bulldoze this. We will first see voluntary compliance of these guidelines. And if we see the menace continues to grow we may make this mandatory,” Rohit Kumar Singh, secretary of the Department of Consumer Affairs, told reporters in New Delhi. The Bureau of Indian Standards will assess compliance, the ministry said. Online companies say they have internal checks in place to combat fake reviews, but currently failure to do so is not a compliance breach. If the guidelines become mandatory, companies could face action for unfair trade practice, for suppressing negative reviews or for enabling planting of fake reviews, Taparia said. (Reporting by NiveditaBhattacharjee in Bengaluru; Editing by Mike Harrison and Mark Potter) Source: Business Standard

Justice delayed is justice denied, they say. Unfortunately, the delay in providing justice has also seeped to the consumer grievance redressal, with the increasing number of pending cases before the state consumer disputes redressal commission and district consumer disputes redressal commission. In a written reply in the LokSabha, Ashwini Kumar Choubey, minister of state for consumer affairs, food and public distribution, says, “Vacancy of presidents and members in consumer commissions across the country and frequent adjournments are some of the major reasons for pendency of the cases.” PV Midhun Reddy, a member of Parliament (MP), has raised the question about the number of pending cases before consumer commissions across the country and the reason for the pendency. Information provided by the minister shows there were 48.7K (thousand) cases filed before the state consumer grievances commissions. Out of these, 37.6K cases were disposed leaving 112,278 cases pending. Similarly, 1.92mn (million) cases were filed in district consumer commissions from across the country, out of which 1.49mn were disposed. At present, there are 429,562 cases pending before the district commissions, information shared by the minister shows. Among the state commissions, the highest number of cases at 84,850 was filed in Uttar Pradesh, followed by Maharashtra at 72,885 cases. However, Maharashtra has the maximum number of cases (25,989) pending, while in UP it is at 20,633. However, the situation is reversed when it comes to cases filed, disposed and pending in the district commissions. In Maharashtra, 26.2K cases were filed, out of which 21.5K were disposed, leaving 47,521 cases pending. In UP, 18.8K cases were filed; out of these, 10.7K cases were disposed, leaving 80,413 cases pending. According to Mr Choubey, the minister of state, the new Consumer Protection Act provides for establishing mediation cells within the premises of consumer commissions to work as an alternate dispute resolution (ADR) mechanism. If there is a scope for early settlement and parties agree to it, the consumer commission can refer cases to these mediation cells, he added. “Under the provisions of the Consumer Protection Act it is the responsibility of the state governments to fill up the vacancies of the president and members in the state commissions and district commissions. The Union government has been continuously taking up with the state governments and Union territory (UT) administrations for expeditious filling up of the existing and anticipated vacancies of president and member of the consumer commissions,” the minister says. Last month, the department of consumer affairs, along with the National Legal Service Authority, participated in the National LokAdalat, where pending consumer cases having the element of mutual settlement were identified and, with the consent of parties, were referred for settlement. Out of 19,497 cases listed for settlement, 5,930 cases were settled on a single day during the LokAdalat.

The harassment, humiliation and mental agony of customers in the name of updating know-your-customer (KYC) continues unabated and banks are regularly found freezing accounts without any intimation or communication, as mandated by the regulator. This inflicts ‘financial death’ on people by depriving them of access to their own savings. KYC documents are basic identification documents such as your PAN number or Aadhaar or some address proof to prove that your account is bona fide. However, banks simply do not pay any heed to directions issued by the Reserve Bank of India (RBI) and ignore whether the customer is a senior citizen, an old customer, or a company or even a non-government organisation (NGO) or trust. Even many senior citizens, who have been banking with the same branch for decades, are being repeatedly harassed for re-KYC. Some of them are pensioners and submit their life certificates once a year to the bank. However, these pensioners are also not spared by banks from the re-KYC. While the maximum harassment is for business accounts and trusts, individuals with savings accounts, which need KYC renewal only once in a decade, are also routinely harassed. Most are unaware that RBI has now permitted online KRC renewal. Instead, customers are being asked to come to the ‘home’ branch in person and sometimes wait for a long time to update KYC. Online KYC The central bank, however, thinks that banks have resolved the KYC and KYC renewal issue. A high-level source at the RBI says: “We have simplified the re-KYC process and low-risk customers are required to do re-KYC once in 10 years. This can be done through self-declaration in case there are no changes in KYC details. This can be done through digital channels such as customer’s email ID, mobile, ATMs, online banking or internet banking, and mobile application of the bank concerned.” “In case of a change only in the address details of the individual customer, a self-declaration of the new address has also been allowed, which has to be verified by the bank through positive confirmation within two months,” the source says. Very few customers are aware of this change and banks, who relentlessly spam their customers for loans and credit cards, do not bother to provide this information either. RBI itself has funds under the depositor education and awareness fund (DEAF)—comprising of unclaimed deposits and interest—which can be used to create public awareness. The Fund even uses superstar Amitabh Bachchan in its public service campaigns. The central bank has apparently not realised that online KYC could also do with an awareness campaign.  Disaggregated customers are unable to get their voices heard, so our sister entity Moneylife Foundation had submitted a detailed memorandum to RBI in April this year as a first step in this long battle to mitigate hardships faced by bank customers. As pointed out in the memorandum, denying customers access to their own money is an extreme punishment which is imposed with impunity by bank officers, often without adequate notice, merely for a delay in compliance with KYC re-submission. “Often, customers get no warning and learn of the draconian action when their cheques bounce or debit card is dishonoured, despite money in the bank. Sometimes, they suffer because banks have made horrible mistakes or failed to seek or update information in the core banking system. Banks neither apologise nor face any consequences when this happens,” the memorandum says. Last year, we also found that the regulator had not penalised any lender for failing to adhere to its KYC updating guidelines. Further, RBI had no information about communication between banks and the regulator for KYC updates of customers in the high-risk, medium-risk and low-risk categories, as shown by a reply received under the Right to Information (RTI) Act. According to a top banker, banks are supposed to classify customers on the basis of their risk profile and the KYC harassment is reserved for those who are seen at higher risk. However, the nature of complaints that one sees on social media reveals that depositors, who would logically have the lowest risk profile—for instance, senior citizens living on savings and pensions, current accounts of companies that are used for routine business and salary payments—also suffer harassment and threats to freeze accounts. Neither banks nor RBI are willing to clarify the basis of risk classification. Although banks claim that they are harassed by RBI, and the regulator blames the finance ministry’s money laundering regulations for this, victims of such coercive action have no answers or redress.   The updated master direction issued by RBI on KYC mandates periodic updating to be carried out at least once every two years for high-risk customers, once in every eight years for medium-risk customers and once in every 10 years for low-risk customers. In the case of low-risk customers, when there is no change in status with respect to their identities and addresses, a self-certification to that effect shall be obtained. Risk categorisation is undertaken based on parameters such as customer’s identity, social and financial status, nature of business activity, and information about the clients’ business and their location. Source: Moneylife.in

While describing the modus operandi of cybercriminals, we have always said that they exploit people’s ‘fear’ and ‘greed’ to dupe them and steal their money. Both factors can push people into risky behaviour, such as responding to SMS or calls from unknown persons, sharing personal information or downloading an app. Behavioural experts have identified the psychological fear of missing out (FOMO) and its advanced version, the fear of losing out (FOLO), as mental disorders. Often, people are unaware of responding to situations, taking risks and succumbing to the lure or threat from the scamsters due to FOMO or FOLO. For example, somebody holding blue-chip shares, who ought to sell them and book profit based on performance indicators, is afraid and unwilling to do so because he/she thinks the share price will increase as soon as he/she sells it. It is the fear of losing out-FOLO. Many victims of cybercrimes take unwarranted risks out of FOLO. Here are five common SMS and calls made by cybercriminals to dupe people. Understanding these will help you avoid taking undue risks and you will not lose out on anything.  1. Sextortion Messages/ Video Calls on WhatsApp A few days ago, our local operator sent a message on WhatsApp alerting everyone that his personal details and photos are ‘stolen’ and the criminals are threatening to make public his morphed photos to all his contacts. Sometimes, the criminals are also sending messages to his contacts saying he is not repaying the money he borrowed from them. He says it is all false and he has become a victim of what is known as the ‘sextortion’ racket. He has filed a complaint with the local police station, and investigations are ongoing. Police asked him to block the numbers from which he has been receiving the calls and messages for extortion. He is also asked to inform all his contacts about the incident and not to respond to any such messages about him from any number. The point is cases of sextortion have become rampant and anyone who responds to messages or calls from unknown numbers on WhatsApp can easily become a victim. In all sextortion cases, criminals use the fear factor to extort money from the victim. However, instead of fear, the victim needs to take guidance from someone who knows and understands these issues. Most importantly, without any fear, the victim must file a first information report (FIR) at the nearest police station. This only would ensure that proper action is taken against the criminals. In one such extortion call, when former central information commissioner (CIC) Shailesh Gandhi, was threatened, he disconnected the call and then registered a case at Santacruz police station under Sections 385 and 66(E) of the Indian Penal Code (IPC). According to reports, Mewat region in the tri-junction of Haryana, Rajasthan and UP has fast emerged as the ‘New Jamtara’ of sextortion rackets. “Unlike Kolkata’s burgeoning phishing industry, which has office buildings and call centres, the Mewat scam is a bit of an unstructured cottage industry. Scammers are travelling a lot, especially because many are also truck drivers. They make suspicious phone calls from non-descript highways, using sim cards collected from the road. This is predominantly a leaderless crime racket. There are no kingpins. Anyone with a smartphone and a sim can scam and blackmail.,” says a report from The Print. Sextortion scammers trap their victims either by luring them through links or video calling, and a few seconds are enough to lay the trap for blackmail—the scammer shows the victim an obscene image or video clip and then frames them for consuming pornography. After that, the blackmailing starts from different numbers. “The third and final stage is to impersonate the police: The scammer pretends to be from the Delhi Police’s cyber crime unit, accuses the victim of watching or distributing pornography, and asks for money to bury the ‘case’,” the report says. Sextortion SMS or calls are a clear case of FOLO, where the victim believes s/he will lose something if they fail to fulfil the demands from cyber criminals. 2. PAN Update SMS HDFC Bank is the latest favourite of cybercriminals. They send SMS about blocking an HDFC account if the permanent account number (PAN) card details are not updated. The message also contains a shortened link (to disguise the original link). Two important things to remember in case you receive any such message: Check the sender. If it has come from a mobile number, then it is definitely a fraud SMS. Secondly, the message will have the first letter capitalised without any reason. For example, the ‘HDFC’ SMS says, “Dear Customer Your HDFC Account has been blocked Today please Update Your PAN CARD”. Neither HDFC Bank nor any other bank and financial services provider sends a message in this language or manner, never from a mobile number. They all use registered and authentic headers in their SMS messages sent to customers.  By not responding to such messages, you will neither miss anything nor lose anything (read: money). 3. Quick & Bumper Returns on Investment There are several cases where common people are lured into investing in the stock market, forex (foreign exchange) trade or anything fancy with promises to earn huge returns. A few months ago, a person from Pune was cheated of Rs4.37 crore under the pretext of investing money in forex trading and earning huge returns. The ‘investor’, in this case, was promised a 24% return. As Moneylife keeps reiterating, if anyone promises investment returns of more than the provident fund’s current interest rate, then be very careful. Also, stay away from financial products you do not understand. For example, if you have no idea how the foreign currency market or trading or crypto trading works, it is better to avoid any ‘investment’ plan that offers higher returns from forex trade or crypto trading. All such investment traps fall under FOMO, where people think they will miss the opportunity to gain something big. 4. Free Gift