Competition Law and Policy for Rural Consumers

Abstract

Rural markets comprises of a major market in India. About 70% of the population stay in villages/rural areas and are consumers of various products and services. With growing technological know-how and communication channels the flow of goods and services from urban to rural areas have potentially increased. This has given birth to the concept of rural marketing. As ‘market’ is central to the concept of rural marketing, it is equally important when we look at it from the competition law perspective. The mandate of competition law extends to the whole of India except Jammu & Kashmir, which includes both urban and rural markets. The law does not make a distinction as to its applicability to urban or rural areas and is to prevent practices having adverse effect on competition, promote and sustain competition in markets, to protect the interest of consumers and to ensure freedom of trade carried on by other participants in markets. However, rural market may be classified as different market under the definition of ‘relevant market’. The present paper would examine the competition law provisions and its applicability specifically to rural markets and rural consumers. It may be noted that 11th Planning Commission has observed that in rural areas only 13% of the population had heard of the Consumer Protection Act. In view of this, awareness about competition law may be gauged. The paper would seek to bring out the areas of competition law relevant for rural markets and how this can be utilized for the benefit of rural areas to protect the interests of consumers and ensure freedom of trade. The first part of the paper would deal with the concept of rural markets and rural marketing and draw a distinction from the urban markets. The second part will deal with the competition law provisions broadly and how they apply to the rural markets. The third part would bring forward the issues concerning this area.