Govt control has weakened Indian consumers by taking away their right to sue

The article argues that increasing state control over consumer rights in India has paradoxically weakened consumers by diminishing their ability to sue for grievances. While interventions by bodies like the DGCA and SEBI occur, they often fail to provide meaningful compensation or resolution. The author contends that relying on state enforcement concentrates power, risks capture by businesses, and lacks the proportionality of private legal action, such as class action suits.

Class action suits, prevalent in jurisdictions with strong consumer rights, allow for the aggregation of claims and provide incentives for businesses to settle and compensate victims. India's legal framework permits class actions, but their effectiveness is hampered by unpredictable court outcomes, the lack of a robust 'plaintiffs' lawyer' system (due to restrictions on contingency fees), and limited litigation funding. Furthermore, regulatory bodies like SEBI often monopolize enforcement in sectors like financial markets, discouraging private lawsuits.

The author concludes that genuine consumer protection requires empowering individuals and enabling collective action through effective class action mechanisms. Without these avenues for private enforcement, consumer protection risks becoming a hollow promise, offering committees and interventions that rarely deliver substantial relief to those harmed.

(Source：ThePrint)