LOK SABHA PASSES CONSUMER PROTECTION BILL, 2019

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The days of “Caveat Emptor” are far long gone and now are the era where “Consumer is King”. Formerly, when the sellers had all the rights and the powers, the position of a consumer was hugely neglected even though they were the ones positively affecting the economy. But with the new policies introduced, the consumers did get what they deserved which are the rights and the various tools at their disposal. The Consumer Protection has indeed come a long way!

To upgrade and refine the rights of the Consumer, and to impart a mechanism for redressal of complaints regarding shortcomings in goods and deficiency in services, the Lok Sabha on the 30th of July, 2019 has passed a Consumer Protection Bill, which seeks to wholly replace the Consumer Protection Act, 1986.

Speaking on the bill, the Union Food and Consumer Affairs Minister, Ram Vilas Paswan explained that the overall impetus of the legislation is to ease the process of addressing the grievances of the consumers.

The bill amongst other things makes a provision for the creation of the Central Consumer Protection Authority (CCPA), which shall act asa National Level Regulator which would deal with matters related to violation of consumer rights, false and misleading advertisements and unfair trade practises that are prejudicial to the interests to the consumers and to the general public. Regarding the authority, the District Collector shall be empowered to report to the CCPA on mass consumer complaints in the bothered jurisdiction.

Further, the CCPA also has the power to order a recall of goods that seem dangerous, unsafe, and administer the discontinuation of practises that are unfair and prejudicial to the interests of the consumers.Additionally, it can also impose penalties and punishments on manufacturers and celebrity endorsers.

KEY FEATURES OF THE BILL INCLUDE:

  • Definition of the Consumer: A consumer is defined as a person who buys any good or avails a service for a consideration. It does not include any person who procures a good for resale or a service for some kind of commercial purpose.
  • Rights of the Consumers: The consumer rights have been enhanced and defined in the Bill including the right to be protected against marketing of goods and services which are hazardous to life and property, right to be informed of the quality, quantity, potency, purity, standard and price of goods and services, right to be assured of access to a variety of goods and services at competitive prices and right to seek redressal against unfair or restrictive trade practises.
  • Consumer Disputes Redressal Commission: The Consumer Disputes Redressal Commission (CDRC) shall be set up at the district, state and national levels. Complaints against an unfair contract can be filed only with the State and National levels.
  • Jurisdiction of CRDC’s: The District CDRC shall take up cases of complaints where the value of the goods and services does not exceed Rs. 1 Crore. The State CDRC shall entertain cases of complaints where the value of goods and services does not exceed Rs. 10 Crore and finally, the National CDRC will take into consideration the cases of complaints where the value of the goods and services over the value of Rs. 10 Crore.
  • Penalties: The CCPA may impose a fine on the manufacturer or the endorser of Rs. 10 Lakh and imprisonment for up to 2 years for a misleading advertisement. For a subsequent offence, the fine may increase up to Rs. 50 Lakh and the imprisonment up to 5 years.
  • Product Liability: This term means liability of the manufacturer, or seller to compensate the consumer for any kind of injury caused by a defective good or deficient service. To claim the compensation, the consumer has to prove any of the conditions for defect or deficiency as mentioned in the Bill.

In conclusion, the Bill is different from the Consumer Protection Act of 1986 as it adds important provisions that were needed but were not present earlier. The Bill aims to provide power to the consumers by presenting them with the rights.The Bill has definitely brought a positive transformation in the subject of Consumer Protection.

By-

Nandini Sharma

Student Reporter,INBA